PERSONAL FINANCE

CHECKING ACCOUNT

CONVENIENT HELPS YOU KEEP TRACK OF MONEY:

USING THE CHECK REGISTER OR ONLINE BANKING

SAVES YOU MONEY – EXPENSES ARE LESS THAN MONEY ORDERS.

Check Writing

Dollars

Check Register

Debit Cards

Money comes out of checking account right then.

They are convenient and safe. They are fast and easy.

Debit Card Dangers

You must have the funds in your account.

You will need to keep careful track of every transaction you make.

You will incur overdraft fees if you withdraw more money than your account has.

Using your debit card does not keep you from becoming overdrawn on your account. Those fees add up quickly!

Credit Cards

Store cards or charge cards available. Benefits: don’t have to carry cash, can

use for emergency expenses, monthly statement, and you can consolidate your monthly spending into one account.

Cautions: you are responsible for the charges each month, additional fees could be added, beware of impulse buying, not paying it off monthly adds additional penalties that cost you more!

Debit vs. Credit Cards

Debit cards immediately take funds from your checking account.

Credit cards bill you once a month. You must pay the funds back to the lender.

Credit cards rack up penalties if you do not pay it off each month.

Debit cards rack up overdraft fees for each transaction over the amount in your account.

Savings Accounts

Savings: You earn interest and you have access to it anytime.

Money Market Savings: Your interest rate increases as your balance increases, your interest rate changes as the economy changes, and you can access your account at any time.

Certificate of Deposits (CD): You are paid interest over a set amount of money and time. You are penalized if you withdraw it early. It is a simple way to get higher interest rates with no fees.

Online Banking

Access from anywhere – including your phone.

You can: transfer money. :receive online banking

alerts. :balance your checkbook. :update personal

information. :schedule bill payments. :monitor your account.

Fees

Overdraft or insufficient funds: If you do not have the money in your account to cover your check, they will charge a fee to your account to cover it.

Monthly service fees: Some banks charge this just to cover the cost of servicing your account.

ATM fees: This fee varies depending on the bank.