Personal Finance Lesson #2 - Understanding Money: Banking

The difference between a checking and savings account is:

A checking account lets you write paper checks as a form of money, savings does not

You can't make withdrawals from a savings account

Savings accounts don't issue debit cards

Both are legal forms of bank accounts

A bank account serves what purpose?

To have a safe place to deposit monies

To have a central place for all financial transactions and financial records

To have a place to link various accounts for personal finance

Gives you interest on certain balances and accounts

When you reconcile an account for a month, you do what?

Add deposits

Subtract expenses or checks, withdrawals, fees, or payments & service charges

Make sure the beginning and ending balances match

Check to see what expenditures have and have not cleared

A Service Charge is a fee for what?

A type of service like an ATM fee

A fee for certain types of accounts

A fee charged for overdrafts

A fee charged for interest

When reconciling an account, interest should be treated as what type of transaction?

A deposit

A credit

A withdrawal

An annual fee

The minimum balance in a checking account is what?

The amount you have left at the end of every month

The amount you have after depositing money

The amount required to keep the account open

The amount required to close the account

How are Credit Unions different from banks?

Banks are for-profit, owned by private companies, and usually charge for services

Credit Unions are owned by its members; often most of their accounts are free and usually offer better loan rates

Banks are owned by rich white dudes to take other people's money

Banks are community services available to many different types of people groups

A debit card purchase from a checking or savings account is a type of

Withdrawal

Deposit

Purchase

Service Fee

The placement of a paycheck or money into your bank account is called

A withdrawal

A service fee

Deposit

Closing balance

A check register is to help you do what?

Balance your checking account

Keep track of purchases, ATM withdrawals, and deposits

Track interest and bank fees

Reminds you to deduct service fees

Personal Finance Lesson #2 - Understanding Money: Banking

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