WorksheetsIntroduction and the Unbanked
Total questions: 13
Worksheet time: 7mins
What barriers to financial stability are commonly faced by unbanked individuals?
Unlimited access to low-cost digital banking apps
Ability to save money and build credit
Guaranteed approval for traditional credit products
High-interest investment choices available everywhere
What are two common reasons why people may be unbanked?
lack of trust in banks
can't find one to meet their needs
can't meet the minimum balance requirements
have too much money to be covered by FDIC
A 16 year old without a bank account wants to build credit and keep savings secure. Which plan best addresses both goals?
Open a custodial savings account with parent/guardian
Use only cash for purchases and hide savings at home
Open a checking account by yourself and avoid any form of credit
Rely on payday lenders to establish strong credit history
Which statement best describes how a debit card processes purchases?
It borrows money that you repay at the end of the month
It uses a separate balance not connected to your bank
It holds funds and posts the charge several days later
It withdraws money from your checking account immediately
A student wants to avoid overdraft fees while using a debit card. Which plan is most effective?
Track actual spending and stop when near the balance
Ignore immediate postings and check later
Use overdraft protection for every transaction
Switch to a card that borrows money monthly
Which statement best describes how prepaid cards work?
They are loaded with a set amount of money
They provide unlimited spending with no limits
They draw funds from a linked bank account
They automatically build credit history over time
A teen wants to avoid overspending while shopping. Which feature of prepaid cards supports this goal?
Monthly interest charges encourage careful spending
Spending is capped by the card’s loaded balance
Rewards points restrict purchases above a limit
Linked savings transfers stop excess spending
Which challenge should someone consider before repeatedly adding money to a prepaid card?
High ATM withdrawal limits on every card
Potential reload fees when adding funds
Lack of security if you lose or misplace the card
Automatic connection to checking accounts
Which action best helps avoid paying interest on credit card purchases?
Use cash advances for purchases
Pay the minimum due each month
Pay the full balance each month
Delay payments until next statement
Which benefit is most commonly associated with online banks compared to brick-and-mortar institutions?
Stronger local branch relationship building
More in-person customer service hours
Lower fees from reduced operating costs
Easier face-to-face problem solving
A student wants easy money transfers, low fees, and mobile access. Which account type best fits these priorities?
Checking with online access & a broad ATM network
Traditional savings with no online acccess
Credit Card with high interest rate
Prepaid card without bank features
When moving from a student bank account to an adult account, which responsibility is most likely to change and require closer attention?
Choosing investment mutual funds only
Setting personal savings goals annually
Applying for federal student aid yearly
Monitoring changing fee structures monthly
Which card is funded directly from your checking account at the time of purchase?
Prepaid card with preloaded funds
Credit card with 30 day billing cycle
Store card used for rewards
Debit card from checking account
