Chapter 2 + 3 Flashcards
1
Q
fund protection for up to $250,000
A
FDIC Insurance
2
Q
account WILL overdraft, causing a fee (prevents card from declining)
A
Overdraft Protection:
3
Q
funds are pulled directly from checking account using
A
Debit Card
4
Q
3-6 months of expenses
A
Emergency Fund
5
Q
Savings vs Investing
A
Saving – short-term. Investing – long-term.
6
Q
Interest paid on initial deposit amount
A
Simple Interest:
7
Q
Interest paid on initial deposit amount and interest earned
A
Compound Interest
8
Q
?% needs, ?%savings, ?%wants
A
50-20-30
