Podcast
Questions and Answers
What is the best way to create a budget?
What is the best way to create a budget?
- Split your income in half: save 50% and spend 50%.
- Divide your income into categories and plan how much you’ll spend on each. (correct)
- Decide a maximum amount that you can spend each week. Spend that amount however you want as long as you don’t go over it.
- Create minimum savings goals that you must reach before you can buy any “wants.”
How does a debit card work?
How does a debit card work?
- It lets you pay with the money in your checking account. (correct)
- It automatically deducts money from your savings account.
- It gives you the option to choose what account you want to pay with.
- Your bank or credit union lets you borrow money that you have to pay back later.
Which of the following is true about credit cards?
Which of the following is true about credit cards?
- If you don’t pay your balance off in full each month, you’ll accrue interest. (correct)
- Charging your credit card is the best way to pay for an unexpected expense.
- You can’t use a credit card at most stores.
- Credit cards allow you to access money in your checking account.
Someone broke into your apartment and stole all of your stuff. Luckily, you have renter’s insurance. How do you request that your insurance pay for the lost items?
Someone broke into your apartment and stole all of your stuff. Luckily, you have renter’s insurance. How do you request that your insurance pay for the lost items?
What is one advantage of creating minimum savings goals before buying any 'wants'?
What is one advantage of creating minimum savings goals before buying any 'wants'?
What is the purpose of deciding a maximum amount to spend each week when managing finances?
What is the purpose of deciding a maximum amount to spend each week when managing finances?
What is a potential consequence of not paying off the balance in full each month with a credit card?
What is a potential consequence of not paying off the balance in full each month with a credit card?
How does renter’s insurance help protect against loss or damage to personal belongings?
How does renter’s insurance help protect against loss or damage to personal belongings?
'Borrowing' money from a credit card without paying it back promptly can lead to what financial consequence?
'Borrowing' money from a credit card without paying it back promptly can lead to what financial consequence?
'Budgeting' involves which of the following actions?
'Budgeting' involves which of the following actions?
What role does a 'deductible' play in an insurance claim?
What role does a 'deductible' play in an insurance claim?
In terms of financial planning, what does 'accruing interest' typically indicate?
In terms of financial planning, what does 'accruing interest' typically indicate?
How does a credit card differ from a debit card in terms of accessing funds?
How does a credit card differ from a debit card in terms of accessing funds?
What is the name of the document that shows you what you were paid and how much was taken for taxes?
What is the name of the document that shows you what you were paid and how much was taken for taxes?
When moving to a new rental, how much is the security deposit often?
When moving to a new rental, how much is the security deposit often?
You received $200 for your birthday. What should you do first?
You received $200 for your birthday. What should you do first?
What is the name of the document that tells you what you need to pay on your credit card?
What is the name of the document that tells you what you need to pay on your credit card?
What happens if you go into debt?
What happens if you go into debt?
If you charged $500 to your credit card to buy a new TV and paid it off after 6 months, what is the principal in this situation?
If you charged $500 to your credit card to buy a new TV and paid it off after 6 months, what is the principal in this situation?
If you decide to rent a place to live, you’ll need to sign a _____.
If you decide to rent a place to live, you’ll need to sign a _____.
If you pay off only the amount owed on your credit card each month, but don’t pay it off completely, what’s that called?
If you pay off only the amount owed on your credit card each month, but don’t pay it off completely, what’s that called?
Your account statement arrived. You had a balance of -$52.79. After the $307.74 deposit from Rolands Bookstore, what is your new account balance?
Your account statement arrived. You had a balance of -$52.79. After the $307.74 deposit from Rolands Bookstore, what is your new account balance?
On Jan. 8, your account was charged $30.00 for an overdraft fee. Why did that happen?
On Jan. 8, your account was charged $30.00 for an overdraft fee. Why did that happen?
Why wouldn’t every purchase you made show up on your account statement?
Why wouldn’t every purchase you made show up on your account statement?
How often are you required to make payments on an auto loan?
How often are you required to make payments on an auto loan?
What’s the difference between net pay and gross pay?
What’s the difference between net pay and gross pay?
Flashcards
Budgeting Purpose
Budgeting Purpose
Tracking income and expenses to manage finances effectively.
Budgeting Steps
Budgeting Steps
Setting financial goals, identifying income and expenses, and adjusting to meet those goals.
Debit Card
Debit Card
Directly withdraws money from your bank account.
Credit Card
Credit Card
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Revolving Debt
Revolving Debt
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Renter's Insurance
Renter's Insurance
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Deductible
Deductible
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Pay Stub
Pay Stub
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Credit Card Statement
Credit Card Statement
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Security Deposit
Security Deposit
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Lease
Lease
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Financial Goals
Financial Goals
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Needs vs. Wants
Needs vs. Wants
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Weekly Spending Limit
Weekly Spending Limit
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Interest Accumulation
Interest Accumulation
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Negative Account Balance
Negative Account Balance
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Overdraft Fee
Overdraft Fee
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Account Statement
Account Statement
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Regular Deposits
Regular Deposits
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Financial Consequences
Financial Consequences
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Study Notes
Budgeting and Financial Planning
- Creating a budget helps to track income and expenses, making it easier to manage finances.
- Budgeting involves setting financial goals, identifying income and expenses, and making adjustments to achieve goals.
Debit and Credit Cards
- A debit card withdraws money directly from a user's bank account, whereas a credit card borrows money from the card issuer.
- Using a credit card without paying it back promptly can lead to accumulating interest and debt.
- Paying off only the minimum amount owed on a credit card each month, but not paying it off completely, is called revolving debt.
Insurance and Protection
- Renter's insurance helps protect against loss or damage to personal belongings by providing a way to request reimbursement for lost items.
- A deductible is the amount paid by the policyholder before the insurance coverage takes effect.
- Renters' insurance can provide financial protection in case of theft or damage to personal belongings.
Financial Consequences
- Not paying off the balance in full each month with a credit card can lead to accumulating interest and debt.
- Borrowing money from a credit card without paying it back promptly can lead to financial consequences like debt and interest.
- Going into debt can lead to financial difficulties and difficulties in achieving financial goals.
Financial Documents
- A pay stub is a document that shows an individual's earnings and the amount of taxes withheld.
- A credit card statement is a document that shows the amount owed on a credit card and the payment due date.
Renting and Security Deposits
- A security deposit is often equal to one or two months' rent when moving to a new rental.
- When renting a place to live, an individual will need to sign a lease.
Managing Finances
- Creating minimum savings goals before buying 'wants' can help prioritize needs over wants.
- Deciding a maximum amount to spend each week can help manage finances and achieve financial goals.
- Accruing interest typically indicates that money is being borrowed and not paid back promptly.
Banking and Account Management
- If an account balance is negative, an overdraft fee may be charged.
- Not all purchases may show up on an account statement, depending on the timing of the statement.
- Regular deposits can increase an account balance.
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Description
Test your knowledge of budgeting and debit cards with this answer key for the BANZAI TEEN pre and post test. Find out the correct answers to questions about creating a budget and understanding how a debit card works.
