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Clear & Simple Home > Students > Getting Personal
Getting Personal**
Don't let "personal finance" throw you - it's just you and your money,
literally. Of course, that's not nothing - personal finance covers
everything from your budget to your investments to your retirement plans.
Right now, though, the big concern is day-to-day finance. Checking
accounts. Books. Making money. The way we see it, you can
learn about it now, or wait until you make a mistake. We suggest now.
The first thing you'll want to do is open a bank account. You need it
to pay bills, and anyway it's a lousy idea to carry all your cash around with
you. The question is, what should you know about when you walk into the
bank?
Savings Accounts
Like the name says, these are a good way to start saving money. You won't
earn much interest, but your money's always there if you need it. Check
for minimum balances and monthly fees -- big monthly fees defeats the purpose
here.
Checking Accounts
This is your workhorse, the account you'll use for writing checks and using
ATMs and debit cards. Be sure to check your monthly statement against
your own transaction records (you are keeping transaction records,
right?) to make sure neither you nor the bank has made any mistakes. (Click
here to learn how to read your bank statement and reconcile your checking
account.) And make sure you keep track of your account balance -- if you bounce
a check, it could cost you as much as $30, sometimes more.
ATMs
Everyone knows what these are, but not everyone uses them wisely. Find
out how many your bank has, and whether there's a charge to use them - or to
use other banks' ATMs. And remember: it's not free money. Keep
track of your withdrawals or you'll overdraw your account.
Debit Cards
It works like a credit card, but acts like a check. Funds are immediately
withdrawn from your account, so you can't spend more than you actually have in
your account - in other words, it's a great way to avoid racking up credit card
debt. Again, keep track of your transactions or you could overdraw
account, which is the same as bouncing a check.
Online Banking
Most banks nowadays let you bank online. It's incredibly convenient for
you—feel like checking on whether or not you've got enough coin to take off for
spring break in the middle of an all-nighter? Not a problem. Make
sure your bank offers online banking, and check to make sure that any fees they
charge for online banking are reasonable. (No fees is the most reasonable,
obviously.) You'll want to use online banking, too - setting automatic payment
plans for regular bills (like car payments, for example) is a great way to
avoid late payment and finance charges.
**Content courtesy of Visa's What's My Score  program. |
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