3.4 Banking and Saving

Why is it important to save money? Select ALL correct answers.

• to waste it

• to be prepared for emergencies

• to buy useless items

• to prepare for short-term financial goals

This bank account allows you to deposit money at a bank for safekeeping and access it at any time.

• Saving Account

• Checking Account

• Bill Account

• Certificate of Deposit (CD) Account

This is the cost of using some other person's or bank's money.

• Interest

• Bill

• Principal

• Credit

This bank account allows you to withdraw money, pay a bill, or make purchases easily.

• Checking Account

• Savings Account

• Market Money Account

• Certificate of Deposit (CD) Account

This is a written request to your bank to take money from your account and pay it to someone else.

• Check

• Telephone Call

• Text

• Email

This allows you to withdraw cash from your account or make payments electronically.

• Debit Card
• Loan Account
• Signature Card
• Payday card

The action enters money into an account, and is also known as a credit on a bank statement.

• Deposit

• Withdrawal

• Loan

• Overdraft

This action removes money from an account, either at the bank or an ATM, and is also known as a debit on a bank statement.

• Withdrawal

• Deposit

• Overdraft

• Credit

This occurs if you try to take more money out of your account than you have available.

• Debit

• Withdrawal

• Overdraft

• Loan