Basics Beginner: Managing Your Money at a Bank or Credit Union

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1.
Overdraft protection is usually free.
Choose wisely. There is only one correct answer.
False. Your bank or credit union typically will charge a fee for this service.
2.
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?
3.
Which of the following best explains why checking accounts aren't effective for saving money?
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They are designed for spending money. Because they are designed to be spent by you rather than used by the institution holding them, they pay little or no earnings.
4.
Why might you transfer money from one of your online accounts to another?
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All of the above are reasons why. All of these are good reasons to transfer money between accounts.
5.
If you use a check cashing store to cash your paychecks twice per month at $6 per check, over the course of one year (24 paychecks) you will pay $_______ in fees.
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$144. Cashing 24 paychecks at a check cashing store, at $6 each, would equal $144.
6.
If you are required to keep a bank balance of $500 and your balance falls to $499, what kind of fee might you have to pay as a result?
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Low-balance penalty fee. This fee might be charged if you fall below a certain amount; it depends on how the bank calculates your balance.
7.
If your checking account has a debit card associated with it, you should ________ if you don't want to be able to overdraw your account to complete a transaction with your debit card.
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Opt out. If you opt out, you will not be approved to buy something that costs more than what you have available in your account. This is a good way to ensure you do not overdraw your account and encounter expensive fees.
8.
What is an advantage of belonging to a bank that is online only?
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Higher interest rates. Higher interest rates are an advantage of online-only banks, but there are also disadvantages, such as fewer services provided.