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

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1.
You don't need to read a service's user agreement because it only includes basic contact information and is not legally binding.
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False. A user agreement contains a lot of important information, such as the rules that you need to follow to use the service.
2.
Common uses for a savings account include _______.
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Short-term savings goals. Savings accounts are very safe, pay a low rate of interest, and allow you to access your money at any time.
3.
It is good to be reported in the ChexSystems database.
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False. ChexSystems is a database that banks and credit unions use to track people who mishandle checking and savings accounts.
4.
How much deposit insurance do check cashing stores provide?
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None. You don't get an account at a check cashing store, so you cannot get deposit insurance.
5.
Most financial institutions offer overdraft protection programs like _______.
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Automatically transferring money from your savings account to your checking account. Most financial institutions have a program where money is transferred from your savings to your checking when your account falls below a balance of zero. You may incur a fee when this occurs, but it is much less than an overdraft fee. You may still be able to use your debit card when overdrawn, but you will be charged overdraft fees until your checking balance has a positive balance.
6.
When it comes to borrowing money to buy a home or car, it is an advantage to belong to a bank or credit union.
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True. When you have a relationship with a bank or credit union, you might qualify for a lower interest rate. You would also get convenience and service.
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.
Good habits for monitoring and managing your accounts include _______.
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All of the above. All are good habits to incorporate into managing your daily finances.