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

Test your knowledge

Choose wisely. There is only one correct answer to each question.

Keep studying!

Review your answers below to learn more.

You can deposit checks into an account in your name at a check cashing store.

True

False

False. You do not have an insured deposit account at a check cashing store.

If you overdraw your checking account, you should expect to pay an average fee of $_______ per transaction that occurs when your account is overdrawn.

$35

$10

$12

$0. Most banks will waive their overdraft fees.

$35. Yep. It costs about this much in fees for each transaction that occurs when your account is overdrawn. Three overdrafts would cost you $105 in fees!

What does the routing number on a check refer to?

The financial institution that issued the check

Your account

The check itself

All of the above

The financial institution that issued the check. The routing number is used for this purpose.

Which type of card takes funds out of your checking account right away after you use it?

Debit card

Credit card

Neither of these

Debit card. Debit cards take money out right away.

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?

Reduce your variable expenses, like entertainment

Eliminate a 'want' like cable

Consider reducing a fixed cost like housing/rent by moving to lower-cost housing or getting a roommate to share the rent

All of the above

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?

If you are paying a monthly fee to your financial institution for its services, you are paying a _______.

Maintenance fee

Per-check charge

Low-balance penalty fee

Maintenance fee. Maintenance fees are levied periodically on your account to compensate the institution for its services.

Good habits for monitoring and managing your accounts include _______.

Reviewing your balance 2-3 times each week or before making large purchases

Reviewing your transaction activity to be aware of your spending habits and to check for accuracy

Comparing the checks you have written to those that have been cashed per your statement or online transaction activity

All of the above

All of the above. All are good habits to incorporate into managing your daily finances.

When choosing a bank or credit union account, which feature is the MOST important?

Fees

Customer service

Convenience

It depends

It depends. No one feature is the most important; they vary according to the customer.