Personal Finance – Banking Unit Review

A set of flashcards covering key concepts, vocabulary, and definitions related to banking and personal finance.

Purpose of Banking

People use banks instead of keeping cash at home because it helps keep money safe, helps it grow, and makes it easy to save and pay.

Commercial Bank

Offers services like checking, savings, and loans to people and businesses.

Credit Union

A bank that is member-owned, offering lower fees and better rates.

Online Bank

Works fully online with no branches and usually has higher interest rates.

Checking Account

For everyday spending and paying bills.

Savings Account

To save money and earn interest.

Certificate of Deposit (CD)

To save money for a set time and earn higher interest.

Money Market Account

To earn interest but still have limited access to money.

Deposit

Putting money into your account.

Withdrawal

Taking money out from the ATM.

Interest

Money earned or paid for using money.

Principal

Original amount of money.

Loan

Money borrowed that must be paid back with interest.

Pin #

Personal code used to access accounts.

FDIC

Protects money in banks up to $250,000 with government insurance.

Overdraft

Spending more than you have in your account, which can cause a fee.

ATM

A machine to get or deposit cash.

Routing Number

Identifies your bank.

Account Number

Identifies your personal account.

Direct Deposit

The paycheck you deposit goes straight into your account.

Online Banking

Having access to manage your bank account online.

Mobile Banking

Using a phone app or electronic device for banking.

Debit Card

A card linked to checking accounts that spends your own money.

Credit Card

A card that borrows money that must be paid back later.

Loans

Helps people buy cars, homes, or pay for big essentials.

Checking and Savings Accounts

Help keep money safe and make it easy to spend or save.

Online and Mobile Banking

Makes banking more convenient by allowing access at any time and place.

Responsible Banking Tips

Review statements monthly, secure account info, avoid overdrafts, choose low-fee accounts, and use online tools.