Personal Finance

FDIC

Federal deposit insurance corporation, they insure banks to make sure that if something happens to your bank you will get most or all of you r money back.

PIN and ATM

PIN: a personal identification number to access an ATM, and its four digits long ATM: using a debit card you can use an ATM to withdrawal money from an account

overdraft Protection

automatically transfers available money funds from your savings or second checking account to your checking account if you overdraw it (safety net)

what are the 3 types of credit cards

bank credit card, gas or store credit card, refunded cards (starter cards)

credit card payments

buy now pay later.

debit card payments

buy now, pay now

credit card gas/store cards

can get is at 18 years old you can get one without a parent signature, but you have to have sufficient income or you will need one . this is a good way to establish a credit history, usually easier than a bank credit card to obtain. limited to merchant that issued card (macy's/target etc) its a good idea to pay off in full each month

what is the difference between a credit card and debit card

credit cards when used money doesn't come straight out of your bank account but you have to pay over time or monthly without interest. debit cards when used take moneys strait from you bank account.

Deposit

credit. when you make a deposit into a bank account you make credit, or add to it

Withdraw

debit. when you make a withdrawal at a bank you make a debit, or take money out

debit card potential benefits

easier and faster than writing a check. avoid debt problems. more cards are now offering freebies and some purchase protection

debit card potentail concerns

fees and certain transactions you may overdraw your account if you are law, about recording debit card transactions.

credit card potential concerns

fees and penalties. also not all cards offer grace periods over spending can cause debt problems

credit card potential benefits

freebies, such as cash rebates and bonus points good for travel deals some purchase protections

credit card interest charges

if you carry a balance or your card offers no "grace period"(time to pay without incurring interest)

checking account

its primary purpose is for everyday money, transactions such as paying bills and making purchases. few or o restrictions of the number of withdrawals per month. may pay monthly interest, and usually charges for monthly maintenance.

credit card bank

need to be at least 18 years old and show proof of income. need to show you can manage money as well. this is the hardest card to get. using this card you can buy stuff now and pay it off later, its a big responsibility. if you don't pay it off you balance in full, you will pay interest on your card which will be high for new credit card users 20-30% interest.

credit card pre-funded

no a real credit card. Money is deposited into your account and you can use your card anywhere a credit card is excepted. Once you spend all the money just add more, you can get one at 16 years old or at 13 with a parent signature. this help to build credit history with your bank

debit card interest charges

none

general advice to avoid fees, penalties etc.

pay bills on time, if you have a credit card always pay more than the minimum payment and pay fully if possible. do not have a history of bounced checks or consistently overdrawing from your checking account.

what are the differences between saving and checking accounts

savings accounts store your money that you keep forth future, like maybe Putting in 15% of your income in each month to save for retirement. checking accounts are where money you store your money that you use for everyday purposes.

what are the 3 types of saving accounts

statement savings accounts, certificates of deposit, money market saving account

statement savings account

this account has a low opening deposit, low minimum balance, few or no fees, safety and is easy to get your money out. But, you'll get a lower interest fee. you have to keep your money in the account for a certain amount of time maybe like 5 years or else your interest drops and you have to pay fees.

money market saving account

this is a good way to earn money if you already have a good starting amount. this has an even higher interest rate and you can get your money anytime, but this requires a large minimum balance like 2,500, if you do not leave the minimum balance your fees and penalties will be high, some accounts limit withdrawals, not protected by FDIC

certificates of deposit

this is a safe account that will earn you high interest rate, but you must leave your money in the account for a set period of time. you must set up a maturity date which is a time at which you may pen up your account again, this may be 1 month or 5-10 years. you can withdrawal before this but you'll lose all the interest you earned and may have to pay a fee

debit card

when using a debit card, you buy the item and unlike a credit card the money comes strait out of your bank account, so when your out of money your out of money, you can't get into debt. Some cards have purchase protection, there are some fees on certain transactions. you may overdraw your account if your are lax about recording transactions

what is a limitation put on checking accounts

you can only take out money so many times, or you will be penalized. you get interest for keeping money in the account

what do you have to have to open a checking account

you need picture ID, parent or guardian with you, you need money to put in the account, you do NOT need a credit report

what do you need to have when getting a credit card

you need to be 18 and you need to have a parent to sign, and when someone wants to co-sign they also look at their credit score because if you can't pay something off, then they want to know that someone else can.

what do banks look at when you want to take out loans to by a boat or house?

your credit score