unit 2

50-20-30 Rule

A popular savings guideline where 50% of income is for necessities, 20% for savings and debt repayment, and 30% for flexible spending.

ATM

Automatic Teller Machine; allows managing bank account funds through withdrawing, depositing, and viewing account balances.

Balance

The amount of money in a bank account.

Bank Statement

A monthly document from a financial institution showing all transactions related to an account.

Canceled Check

A check that has been paid or cleared by the bank, appearing on the bank statement.

Check Cashing Store

A business that cashes checks and provides cash to the customer in exchange for a service fee.

Credit

A sum of money deposited INTO an account.

Debit

A sum of money deducted FROM an account.

Debit Card

A card directly connected to a checking account for conducting ATM transactions and making purchases.

Deposit

Money put into an account.

Direct Deposit

An automatic electronic deposit of net pay to an employee's designated bank account.

Emergency Fund

Money set aside for unexpected expenses or income loss.

Endorse

To sign the back of a check made out to you to cash or deposit it.

FDIC Insurance

Protection from the Federal Deposit Insurance Corporation that safeguards deposits up to $250,000 per account.

Interest

A fee paid to you for keeping money in an account or a fee charged for a loan or credit card.

Low Balance Alert

Notification if a checking account balance goes below a pre-set amount.

Maintenance Fee

A monthly fee some banks charge for access to checking or savings accounts.

Minimum Balance

A required certain amount of money that must be maintained in an account.

Mobile Deposit

A tool for depositing checks using a mobile device.

Online Bill Pay

A technology allowing consumers to schedule and make payments over the internet.

Outstanding Check

A check written but not yet cashed or deposited by the payee.

Overdraft Fee

A fee charged when there are insufficient funds for a withdrawal, but the transaction is allowed.

Overdraft Protection

A loan offered by banks when withdrawing more funds than available, typically for a fee and interest.

Person-to-Person Payment

A digital payment method for transferring funds between bank accounts of different people.

Prepaid Card

A card loaded with a specific cash amount before use.

Unbanked

Describes a person who does not use or have access to traditional financial services.

Underbanked

Describes a person who has a bank account but relies on alternative financial services.

Voided Check

A check with 'VOID' written on it to prevent it from being used.