study guide

What is the definition of a savings account?

Money you won't withdraw frequently

What are the two benefits to putting money into a checking account?

Your money is more secure and you can deposit your paychecks

What are some of the fees that a bank could charge to your account?

They can charge you for wire transforms and Penalties

What is the definition of a Certificate of Deposit?.

Specialized saving act commit to the time

Savings Account

Money you won't withdraw frequently

Checking Account

A wallet you can access daily

Investment Account

the action of investing money for profit or material result

What is the simple interest formula?

I= prt

What does the FDIC do and what does it stand for?

The Federal deposit insurance corporation secures your money.

Principal

Initial amount deposited

Interest

$ bank pays you in return for keeping $ there

Interest Rate

% of you $ that you get as interest

Social Security

$ payments based on lifetime earnings

Medicare

healthcare you receive 65 and older

Retirement

$ to use after you stop working

Medical Insurance 

dr. hospital

What is the difference between net pay and gross pay?

Gross pay is what you earn before taxes while net pay is what you actually take home

How much is recommended to be in your emergency fund?

It should be at least 20%.

What is the compound interest formula?

A = P(I+r/n)nt

Debt

$ that is owed for a product or service that is already purchased

Asset

Valuable that holds its value overtime or increases

Debit card

a card usually issued by your bank to go with a checkings act. automatic

Credit card

the payment is made for you then you are billed

Cash back

When you pay with a debit card that’ll get charge back

Tip

Receive a service

Sales Tax

purchases