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

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1.
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.
2.
Checking accounts and savings accounts should be evaluated based on their usefulness for serving long-term goals, such as retirement and homebuying.
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False. Checking accounts and savings accounts are not useful for long-term goals. They are useful for short and intermediate-term goals.
3.
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?
4.
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.
5.
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.
6.
When opening a new account at a bank or credit union, which type of account is more appropriate if you are paying bills and making purchases?
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Checking account. Checking accounts are designed for spending money, such as bills.
7.
When choosing a bank or credit union account, which feature is the MOST important?
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It depends. No one feature is the most important; they vary according to the customer.
8.
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.