Personal Finance Courses: Managing Your Money at a Bank or Credit Union

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1.
A good way to ensure you save some of your income each month is to _______.
Choose wisely. There is only one correct answer.
Use online banking to set up an automatic monthly transfer of funds from your checking to savings account. Doing this ensures that you 'pay yourself first' each month.
2.
You can cash a check for free at a _______.
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Bank or credit union. If you have an account at a bank or credit union, you can cash or deposit checks for free. Check cashing stores charge a fee on average of $5-7 dollars per check.
3.
What does the routing number on a check refer to?
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The financial institution that issued the check. The routing number is used for this purpose.
4.
Which of the following is probably least important when evaluating an online bank's trustworthiness?
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Whether it offers rewards points for signing up. While rewards may be welcome, they are probably the least important regarding the trustworthiness of a digital bank.
5.
Which type of card takes funds out of your checking account right away after you use it?
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Debit card. Debit cards take money out right away.
6.
Overdraft fees are charged for the first three transactions that overdraw your account.
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False. Overdraft fees are charged for all transactions made after being overdrawn. Some banks may limit the number of fees.
7.
Suppose your balance at the end of the month in your check register is $98. Let's say you would like to have a little more of a cushion and would like your balance to be at least $200 at the end of the month. What are your options for accomplishing this?
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All of the above. Reducing your expenses is all about making choices. What tradeoffs are you willing to make to free up additional savings dollars?
8.
When your savings account transfers money to your checking account to cover a lack of cash due to your overspending, that is called _______.
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Overdraft protection. Transferring money to keep your checking account positive is called overdraft protection. Overdrafts and check-bouncing are the acts that got you into this situation to begin with.