Certificate of Deposit (CD)

A savings product that earns interest on a lump sum for a fixed period of time. (You should not plan to use this money in the near future if you set up a CD)

A hybrid account that pays interest based on current interest rates in the money markets.

Online Savings Account

A savings account that doesn't have any brick-and-mortar location and currently earns you a high interest rate.

Traditional Savings Account

A place to hold money that you don't want to spend on a regular basis. This money will earn interest, but it is lower than some of the other accounts like CD's and Online accounts right now.

When should you start saving for retirement?

When you start your first full-time job / as young as possible

This account offers a convenient way to pay bills and access cash from an ATM. This account automatically deducts money from your account when you use your debit card

Protection for bank customers’ deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business

Overdraft protection ensures transactions still process even if there isn't enough money in your bank account. You will be charged a fee for each transaction. Overdraft Protection is BAD.

Checking Account Statements

A document from the bank that covers a specific time period, usually a month, that shows all the activity on your account for a time period.

Your employer sending your paycheck electronically to your bank account.

Monthly maintenance/service fee. Out-of-network ATM fee. Excessive transactions fee. Overdraft fee. Non-sufficient fund fee.

50 / 20 / 30 budgeting

Divide your income into three categories, spending 50% on needs, 30% on wants, and 20% on savings.

If inflation is HIGHER THAN your savings account interest rate then you will be LOSING purchasing power.

Living Paycheck to Paycheck

No money is saved, and their paychecks are just barely covering monthly expenses

Downsides of being unbanked?

Lack of access to credit Lost time paying bills Difficulty making online purchases

No bank account is needed. Instant access to your money on payday vs. a check. BUT, many fees could be charged for using the ATM, inactivity, checking your balance, etc.

Person to person payment apps

Digital tools that let you send and receive money directly using a mobile phone or computer instead of cash or checks.

Your savings grow by earning interest, which is paid out as a percentage of your savings balance.

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Banking Unit

Personal Finance

Question	Answer
Certificate of Deposit (CD)	A savings product that earns interest on a lump sum for a fixed period of time. (You should not plan to use this money in the near future if you set up a CD)
Money Market Account	A hybrid account that pays interest based on current interest rates in the money markets.
Online Savings Account	A savings account that doesn't have any brick-and-mortar location and currently earns you a high interest rate.
Traditional Savings Account	A place to hold money that you don't want to spend on a regular basis. This money will earn interest, but it is lower than some of the other accounts like CD's and Online accounts right now.
What is a general rule of thumb on how much you should save?	20% of your income
When should you start saving for retirement?	When you start your first full-time job / as young as possible
What do they recommend that you build up in your emergency fund?	3-6 months of expenses
Checking Accounts	This account offers a convenient way to pay bills and access cash from an ATM. This account automatically deducts money from your account when you use your debit card
FDIC Insurance	Protection for bank customers’ deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business
Overdraft Protection	Overdraft protection ensures transactions still process even if there isn't enough money in your bank account. You will be charged a fee for each transaction. Overdraft Protection is BAD.
Checking Account Statements	A document from the bank that covers a specific time period, usually a month, that shows all the activity on your account for a time period.
Direct Deposit	Your employer sending your paycheck electronically to your bank account.
Common Banking Fees	Monthly maintenance/service fee. Out-of-network ATM fee. Excessive transactions fee. Overdraft fee. Non-sufficient fund fee.
50 / 20 / 30 budgeting	Divide your income into three categories, spending 50% on needs, 30% on wants, and 20% on savings.
Inflation	If inflation is HIGHER THAN your savings account interest rate then you will be LOSING purchasing power.
Living Paycheck to Paycheck	No money is saved, and their paychecks are just barely covering monthly expenses
Downsides of being unbanked?	Lack of access to credit Lost time paying bills Difficulty making online purchases
Payroll cards	No bank account is needed. Instant access to your money on payday vs. a check. BUT, many fees could be charged for using the ATM, inactivity, checking your balance, etc.
Person to person payment apps	Digital tools that let you send and receive money directly using a mobile phone or computer instead of cash or checks.
Interest	Your savings grow by earning interest, which is paid out as a percentage of your savings balance.

Created by: LindsayMiller344

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