Checking handout quiz

Summarize nine things

Prepaid cards are more like debit thing credit prepaid cards are in alternative to banks no credit is required or built look for features that suit your needs options for reloading are growing Watch out for fees shop around prepaid cards can help you manage your money you are protected

Low balance alert.

Sends you an alert, text or email when your bank balance drops below a certain amount that you set. This can help you avoid overdraft fees.

What did Sharon do to avoid future overdraft fees

She signed up for alerts I emailed or texted her when her account balance was lower than a certain amount. This made her aware when her account balance was low so she could adjust her spending and avoid overdraft fees.

Four methods of depositing money into your account

1. At a bank branch 2. through an ATM. 3. Mobile app deposit. 4. Direct deposit from your employer.

Five methods of withdrawing money from your account.

1. At a bank branch. 2. through an ATM. 3. write a check. 4. Mobile app withdrawal/payment. 5. electronic transfer out to another account

Three disadvantages of not having a checking account.

1. Check cashing costs money 2. prepaid cards can I have lots of fees 3. less ease of money access

Why is a checking account essential.

1. Deposit allows a person to automatically send a portion of their paycheck to their savings account. 2. You can Create multiple checking accounts in order to divide money to help create a successful and balanced budget 3. Pay your bills for free online, which means you shouldn't have late payments. 4. Shop online with your debit card and get better prices.

Prepaid card similar to debit cards

1. Is limited to the amount of money you currently have. 2. no credit is required. 3. can be used to shop online or in stores that take card payments 4. is safer than caring a large amounts of cash

Prepaid cards different from debit cards

1. Is not linked to a checking account. 2. is not linked to a bank. 3. Typically charges a fee to put money ONTO the card. 4. sometimes has fees for using the money on the card or viewing statements.

What are some advantages of having a debit card

1. Less fees 2. more established systems 3. more protection

What are some advantages of having a prepaid card.

1. No bank hassle. 2. Often tailored for certain lifestyles

What are some examples of fees seen on bank statements

1. Overdraft fees 2. ATM fees (if you do not use your banks or credit union ATM)

Summarize 5 reasons you need a checking account?

1. Safety and protection 2. convenient and free check-cashing 3. convenient and free bill pay 4. debit card convenience 5. budgeting tool

Two strategies for keeping your account safe

1. Use strong passwords 2. don't keep sensitive information on your phone

Three disadvantages of being locked out of or choosing not to belong to a traditional bank system

1. You are charged fees when utilizing services of check cashers. 2. Gas must be spent to cash checks and pay bills. 3. fees are charged when using a prepaid card.

Two ways direct deposit provides convenience

1. You don't have to worry about losing a paper check. 2. You don't have to take any action to cash the check

One piece of advice for people who are using prepaid cards.

Always read the fine print behind a prepaid cards because fees will hurt you financially if you are not careful.

What is the main difference difference between a debit card and a credit card.

Debit cards are cards that draw money from a checking account while credit cards are cards that make purchases with borrowed money, which you must pay back after a certain amount of time has elapsed, probably with interest.

What is an overdraft fee

Fee for withdrawing more money than you have in your account.

What is misleading about overdraft protection

The term "overdraft protection" implies something beneficial. You think overdraft protection will keep your money safe when in fact, you are actually opting into a costly bank fee.

Summarize the 10 tips

Use strong password be mindful of the numbers you use look out for strange emails be aware of email attachments Watch how much you share online be careful about what and where you click Secure your smart phone do not keep sensitive information on your phone Think before you download apps Keep your technology up-to-date

Why is it a good idea to set up mobile alerts for your checking account

Will warn you when your balance is low so you don't overdraw and/or you can modify your spending.

Direct deposit

Your paycheck funds are deposited electronically straight into your account. To use it your employer will need your routing number and account number.

If you have $35 in your checking account and swipe your debit card to purchase something for $50 with overdraft protection, what is likely to happen

Your purchase will go through because your bank will temporarily cover the $15 you didn't have, but with most banks, you will be charged an overdraft fee for overdrawing $25-$35

Mobile deposit alert

alert gives you confirmation when a check has been successfully deposited. It's like having a receipt for your transactions. This will also notify you when a check you deposited has cleared, and funds are available in your account.

Explain why it's important to take advantage of FDIC offered by most banks.

is a government backed policy that protects your money deposit in case of bank failure. If the bank goes out of business you will receive all your money up to 250,000.

Unusual activity alert

notifies you if there is any unusual behavior on your bank account and helps you avoid fraud.

What is the purpose of a bank statement.

provide you with a list of all your transactions from a certain time period in your account including withdrawals, deposits, and fee charges.