Ramsey Test 8

True

A debit card linked with your checking account is a good option for regular spending.

A checking account

A debit card, ATM access, payroll direct deposit, and checks are basic features of ___________.

Long-term savings goals

A savings account is for ___________.

Monitor your account at least twice a week

An easy way to avoid ending up with errors in your checking account is to simply . . .

The first step is to keep track of your expenses through the month and compare that record to your bank statement. Then add any fees the bank may have missed and deduct them from your balance. Finally, check for fraudulent charges.

Describe the process of balancing your account.

Not having a savings or checking account

Distrust, unemployment, and bank fees are a few excuses people give for . . .

When I keep my money at a bank my money has the potential o grow in value depending on the interest. Another reason why having money in the bank is a good idea is because it is insured by the bank up to $250,000.

Explain the benefits of keeping your money in a bank or credit union, as opposed to an envelope under your bed.

They can make money by charging various fees one example is a service fee. Another way the banks make money is through investing customers money. Lastly, they make money from the interest on loans.

How do banks make money?

Debit card purchases, third-party app transactions, and ATM withdrawals

You need to track everything that involves money, including . . .

Debt

You should avoid any bank service that leads to . . .

False

Your emergency fund should go in your checking account, NOT a money market account.

Manage; safe

A bank can help you _____ your money and keep it _____.

Your

As the owner of your account, managing your money is ______ responsibility.

They both get easier and build money confidence the more you do them

Balancing your checking account is a lot like working on your budget because . . .

Earn interest, paying the customer a small amount of interest on their accounts

Banks invest their customers' deposited money and then . . .

True

Credit Unions differ from retail banks in that they typically require membership based on specific criteria.

A small, local bank is often a great option

If you prefer great customer service and lower fees . . .

It hasn't been fully processed yet

If you see "pending" on an account charge, that means. . .

True

If you see a charge you don't recognize, you should report it to your bank immediately.

Fees and services involved

It's your responsibility to know about all of the _______ before choosing a bank.

How quickly and easily you can access your money

Liquidity is . . .

ATM locations; a mobile banking app

Make sure your bank has plenty of ______ and ______.

But you have to pay back the deposited money with interest

Overdraft protection sounds like a good idea . . .

False

Overdrafting your account is a sign of diligence and responsibility.

True

People who are struggling with money often turn to alternative financial services like payday loans, but these services actually end up causing them to lose money.

Mortgages, check writing, and debit cards

Some of the services banks offer include . . .

You end up losing money with all of them

Something that all of the predatory financial services have in common is . . .

$250,000

The Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA) keep your money in the bank insured up to ______ per account.

Reconciling your account

Verifying your bank's online account statements for accuracy is called ____________.

A checking account is for your regular spending while a savings account store your money and grow in interest.

What are the main differences between checking and savings accounts?

The bank doesn't allow you to open an account because you handled money poorly in the past and couldn't pass their financial background check.

What does it mean to be blacklisted by a bank?

A predatory financial service is a check cashing, tax refund lenders, pawn loan shops, or a car title lenders services. All of those services target people who are unbaked and cause them to loose a lot of money with high interest rates.

What is a predatory financial service?

What kind of accounts you want

When deciding on the right bank for you, you should first identify what type of bank you want, the features that matter most to you, and ____________.

Tracking my expenses is important to make sure there are no fraudulent charges on my bank account. Also, if I track my expenses thought the month I can compare them to my bank statement to help me balance my bank account. Both of these go hand in hand when balancing a checking account. The importance of balancing a checking account is to ensure there are no fraudulent charges and to make sure my bank account has the correct balance.

Why are tracking your expenses and balancing your checking account important?

If I were to not keep my money in the bank then I would be prone to fall for any predatory lenders. Another disadvantage to not keeping my money in the bank is that it is not %100 safe. If my house burned down, and I had $500 underneath my bed, then I would have lost all of that money without hopes of getting it back. However, at a bank, all my money will be safe up to $250,000 insured in case a bank were to shut down. Therefore there are more disadvantages than advantages in not keeping my money in a bank.

Why might you be at a disadvantage if you choose not to keep your money in a bank?

Withdrawing your money early

With certificates of deposit (CDs), you have to pay a penalty for ____________.

It's often more difficult to get in touch with a real person when you need assistance

With online banks, all of your deposits, transfers, and bill payments happen digitally, but . . .