Financial Literacy: Banking: Checking and Savings Accounts Worksheet

Question 1

Maya earns $25 for babysitting. She wants to spend $8 this weekend and save the rest for a new bike. Which account would be better for the money she does not plan to spend soon, a checking account or a savings account? Explain your choice.

Accepted Answer

A savings account would be better for the money Maya does not plan to spend soon because it is meant for storing money and may earn interest over time.

Question 2

A checking account is often used for everyday spending. List two ways someone might use money from a checking account.

Accepted Answer

Someone might use a checking account to pay a phone bill and buy groceries with a debit card. Checking accounts are useful for regular payments and purchases.

Question 3

Look at this account activity: starting balance $120, deposit $40, debit card purchase $18, ATM withdrawal $25. What is the ending balance?

Accepted Answer

The ending balance is $117. The calculation is $120 + $40 - $18 - $25 = $117.

Question 4

Jordan has $200 in savings. The bank pays $4 in interest at the end of the year. What is Jordan's new savings balance?

Accepted Answer

Jordan's new savings balance is $204 because $200 + $4 = $204.

Question 5

A bank charges a $5 monthly fee for a checking account unless the account holder keeps at least $100 in the account. Luis has $92 in his checking account at the end of the month. Will he be charged the fee? Explain.

Accepted Answer

Yes, Luis will be charged the $5 fee because his balance is below the required $100 minimum.

Question 6

Sofia has a savings account balance of $350. She deposits $30 each month for 4 months. If there are no withdrawals and no interest is added, what will her balance be after 4 months?

Accepted Answer

Sofia's balance will be $470. She deposits $30 for 4 months, which is $120, and $350 + $120 = $470.

Question 7

Explain the difference between a deposit and a withdrawal.

Accepted Answer

A deposit adds money to an account. A withdrawal takes money out of an account.

Question 8

A debit card purchase is made from a checking account. If the account has $60 and the purchase is $72, what problem could happen if the bank allows the purchase to go through?

Accepted Answer

The account could become overdrawn because the purchase is more than the available balance. The bank might also charge an overdraft fee.

Question 9

Use the account register: Balance $85.00, deposit $20.00, check written for $32.50, debit card purchase $14.75. What is the final balance?

Accepted Answer

The final balance is $57.75. The calculation is $85.00 + $20.00 - $32.50 - $14.75 = $57.75.

Question 10

Which account is usually better for paying rent, buying lunch, and making frequent purchases, a checking account or a savings account? Explain why.

Accepted Answer

A checking account is usually better for paying rent, buying lunch, and making frequent purchases because it is designed for everyday spending and payments.

Question 11

Which account is usually better for building an emergency fund, a checking account or a savings account? Explain why.

Accepted Answer

A savings account is usually better for building an emergency fund because it helps keep the money separate from everyday spending and may earn interest.

Question 12

A savings account pays 2% simple interest per year. If Ava has $500 in the account for one year, how much interest will she earn?

Accepted Answer

Ava will earn $10 in interest. Two percent of $500 is 0.02 x 500 = 10.

Question 13

Read the two account options. Account A has no monthly fee but requires online statements. Account B has a $6 monthly fee and paper statements. If Malik is comfortable using online statements, which account costs less over one year? How much less?

Accepted Answer

Account A costs less over one year. Account B costs $72 per year because $6 x 12 = $72, so Account A costs $72 less.

Question 14

Nina wants to open a bank account. Give two questions she should ask before choosing a checking or savings account.

Accepted Answer

Nina should ask whether the account has monthly fees and whether it has a minimum balance requirement. She could also ask about interest rates, ATM fees, and online banking features.

Question 15

A student has $150. They put $50 in checking for school supplies and snacks, and the rest in savings for a summer camp goal. How much goes into savings, and why is this a smart plan?

Accepted Answer

The student puts $100 into savings because $150 - $50 = $100. This is a smart plan because the checking money is available for short-term spending while the savings money is set aside for a future goal.

Financial Literacy: Banking: Checking and Savings Accounts

Related Cheat Sheets

More Financial Literacy Worksheets

More Grade 6-8 Worksheets