Checking Accounts and Transactions Overview

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Questions and Answers

What is your current balance in the checking account?

$216.04

Is your current balance more or less than you started the month with?

less

Are there any items reflected on your checking account that you don't have receipts for? What are they?

Streamwave videos

What are 2 possible explanations that might explain the extra entry in your checking account?

someone else gained access to their debit card, it was an online purchase so there is no physical receipt Signup and view all the answers

How can you tell that your direct deposit works correctly?

There are two direct deposit payments Signup and view all the answers

What days did you receive your pay?

10/31 & 11/14 Signup and view all the answers

How large was each deposit?

$215 Signup and view all the answers

What's happened so far in your savings account?

one ATM withdrawal Signup and view all the answers

How could you make sure that you are paying yourself first regularly and building up your savings?

Contributing a set amount of each paycheck into savings Signup and view all the answers

What payment frequency would best fit the goal of building up your savings? Why?

Bi-monthly- you can contribute from both direct deposit paychecks Signup and view all the answers

After the transfer, what are the new balances in your checking and savings accounts now?

$579.05 Signup and view all the answers

For what date did you set your first bill-pay to Wonderful Wardrobe? Why?

12/01/23 because the payment can take five days to process Signup and view all the answers

Why is it important to know that it will take 5 business days to process your payment request?

To make sure the recipient receives the money before it's due Signup and view all the answers

What do you see in your notifications?

Low balance alert Signup and view all the answers

Should you be worried about your checking account balance? Why or why not?

No- you made the payment to the insurance company Signup and view all the answers

What is one thing you can do to address concerns about your checking account balance?

Maybe hold off spending until you receive the next paycheck or two Signup and view all the answers

For future premiums, would you rather set up a single large payment or smaller monthly payments? Why?

Single large payment so there's no chance of overdrafting Signup and view all the answers

What happens to your checking account balance?

Overdraft Signup and view all the answers

What is the only thing you can do to fix your checking account?

Transfer money from your savings account into your checking Signup and view all the answers

What are the balances in each of your accounts now?

$35 & $239.05 Signup and view all the answers

In which account do these transactions appear?

checking Signup and view all the answers

What method of purchase would cause these to show up in this particular account?

debit card Signup and view all the answers

What surprises you about what you might spend in a month? How might seeing all your transactions along with your account balance help you adjust your spending habits?

There are smaller purchases we may not think about, but they do affect your account balance. Seeing all of your transactions can help you to realize exactly how much your purchases are impacting your account balance, and can encourage you to reduce your spending. Signup and view all the answers

If you already have a bank account, do you prefer to do in-person banking at the branch, online banking on a computer, or mobile banking from your phone? Explain why.

Primarily mobile banking because it's more convenient and I have access to my bank account status/details anywhere, anytime Signup and view all the answers

Study Notes

Checking Account Overview

Current balance in checking account is $216.04.
Balance decreased compared to the start of the month.

Transaction Monitoring

Discrepancies found: charged for Streamwave videos, no receipts available.
Possible explanations for extra charge include unauthorized debit card use or online purchase without a physical receipt.

Direct Deposit and Pay Schedule

Direct deposit verified by two payments received on 10/31 and 11/14.
Each deposit amount is $215.

Savings Account Activity

Savings account has experienced one ATM withdrawal.
Strategy for regular savings: allocate a set amount from each paycheck to savings.

Payment Scheduling

Recommended payment frequency for savings is bi-monthly, aligning with direct deposit schedule.
First bill pay to Wonderful Wardrobe set for 12/01/23 to allow five business days for processing.

Payment Processing Awareness

Understanding that payments take 5 business days is crucial to ensure timely delivery before due dates.

Account Alerts and Balance Management

Received notifications include a low balance alert.
Checking account activity requires caution, however, payments to the insurance company account for concerns.

Financial Decision Making

Consider delaying discretionary spending until the next paycheck arrives to manage checking account balance.
Opting for a single large payment for insurance premiums prevents the risk of overdrafting.

Overdraft Situations

If overdraft occurs, immediate action entails transferring funds from savings to checking account.
Current balances after transfer: $35 in savings and $239.05 in checking.

Transaction Insights

All mentioned transactions are recorded in the checking account, primarily using a debit card.
Recognizing small monthly expenditures can help adjust spending habits through better transaction visibility.

Banking Preferences

Preference for mobile banking due to its convenience and the ability to access account details anytime, anywhere.

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Description

This quiz covers key concepts related to checking and savings accounts, including monitoring transactions, direct deposit verification, and scheduled payments. It highlights the importance of understanding discrepancies and managing finances effectively.