Financial Literacy

Basics of Banking

Deciding on a Bank

Deciding Factors
  • Cost
  • Convenience
  • Service
  • Also what fees apply for each bank when you don't have the minimum amount of money in your account according to the banks regulations

Checking & Savings Accounts

  • Your Checking Account and Savings are separate because when you take money out of your account it is only through your Checking Account.

  • When you have a debit card it takes money immediately out of your Checking Account, but it won't let you spend over the amount you have.

  • A Savings Account is where you "save" your money, and in case you need it then you can transfer money from your Savings to your Checking Account.

Terms to Know


  • Managing your money into categories and checking the validity of each transaction


  • When you spend over the amount in your account and owe the bank; usually a fee


  • When you take money out of your account like at an ATM


  • When you put money into your account

Direct Deposit

  • Instead of getting a printed check from your employer they can send the money directly into your account

Debit Cards


  • Convenient
  • Can be used as credit
  • Doesn't allow overspending


  • Can lose track of balance
  • Open Checking account for Credit fraud
  • Others get your money if you lose the card

Types of Expenses

Fixed Expenses

  • Monthly payments that are always a consistent amount, they never change.
Variable Expenses

  • Monthly payments that can vary in cost every month
Discretionary Expenses
  • Personal expenses that aren't needed, but treat yourself!

Creating a Budget

  • Helps manage your money and notice negative spending habits

  1. Separate your types of expenses
  2. Organize your transactions
  3. Find your monthly average spending and start a savings
  4. Avoid overspending to avoid Overdraft Fees

Bank Statements & Credit Report

Bank Statement
  • Allows you to see your transactions within a time period, and see what money you have left to spend
Credit Report
  • It is a way for potential leaders, landlords, and future employers to find out how well you manage your expenses
  • It can also be used against you in any court judgements

Identity Theft

What to do

  1. Contact your banks that the account is under so they can flag the account
  2. File a police report so there is a paper trail
  3. Contact the fraud departments at all three major major credit reporting agencies