FINANCIAL LITERACY

Getting started in your banking

Deciding on a bank

1. Convenience

2. Service

3. Cost

- Other fees may apply if you don't carry minimum balance in your account or other requirements set by individual bank

CHECKING AND SAVING ACCOUNT

A Checking account is an account at a bank against which checks can be drawn by the account depositor.

A Saving account is letting you store cash securely and ear interest in your money.

Terms to know

Budget-an organized plan of expenses.

Overdraft-spending more money than you have. Also applies fees for over spending.

Withdrawal- taking money out of you account.

Deposit- a sum of money placed or kept in a bank account, usually to gain interest.

Debit Cards

- Electronically connected to your bank account.

- Money is automatically withdrawn from your account when you make a purchase.


Pros-

  1. Convenient
  2. Can be used like cash.
  3. Doesn't not allow overspending.
Cons-
  1. Can lose track of balance if transactions are not written down.
  2. Open checking account up for credit fraud.
  3. Others can gain access if card is lost.

Identity Theft

When someone steals your information they can access everything your social security, hack your account and star spending your money for whatever. They are very hard to track because you cant know who they are.


If you don't report the weird transactions as soon as possible it will be harder for people to to take the situation serious or if you are just lying.


What to do


  1. Contact all banks and credit card companies where you have an open account and tell them what has happened.
  2. File a police report so that they can begin the process to find the criminal.
  3. Contact the fraud department at all three major credit reporting agencies.

IF YOU LOSE YOUR CARD

  1. Contact the bank so they can disable your card.
  2. If you go to the bank they will give you a temporary card and send the other one in the mail.
It will take a while for it to come in the mail.

BANKING STATEMENT and CREDIT REPORT

Bank statements- are provided to give customer a snapshot of what their account activity has been for a specific time period.

Credit Report- is a report detailing a person's financial history specifically related to their ability to repay borrowed money.

TYPES OF EXPENSES

FIXED-set amount each month
VARIABLE- changes each money

DISCRETIONARY- personal

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