banking unit

regular savings

low interest, easy access

money market

higher interest, may require higher balance

checking

everyday use, low/no interest

cd

certificate of deposit; high interest, limited access

personal saving strategies

best practice: save a % of each paycheck automatically

avoid: payday loans, saving only leftovers

emergency fund

save based on expenses (not gross pay)

for 6 months 2,000 expenses u need 12,000

fdic insurance

covers $250,000 per depositor

savings accounts

pay lower interest than stock market

checking accounts

easy access to funds

short term

new cell

medium term

college tuition

long term

retirement

50 30 20

needs

wants

savings

emergency fund size

save 3-6 months of living expenses

online vs traditional

online accounts oftne offer higher interest, but fdic limits are the same

importance of early retirement savings

start early to benefit from compound interest

automatic transfers to saving

ensures consistency and builds savings without thinking

check bank statements regularly

spot unathorized transactions and track spending and avoid overdraft fees

payroll cards

pro: convenient for those without bank accounts

cons: may involve fees

overdraft fees

avoid by tracking balance

atm fees

avoid by using your bank atm or in-network atm

questions to ask

what the fees

minimum balance or na

interest rate

managing accounts

check statements regularly

set up balance alerts

automate savings transfers

online banking features

mobile chekc deposit

bill pay services

instant transaction alerts

saving strategies

start with percentage of your income, increases over time

follow 50 30 20 rule

checking vs savings

checkings: everyday use

savings: earn interest, fewer transactions

living paycheck to paycheck

means no savings and income barely covers the expenses

debit card

deduct directly from your checking account

credit card

paid later

inflation and savings

if inflation is higher than your interest rate, you are losing purchasing power

account security

if smt is sus contact bank immediately

overdraft coverage

with: face overdraft fees

without: transactions are declined if fees are insufficient

bank statements

typically issued monthly

payment apps

use for transfers not for paying businesses directly

direct deposit

employers send you paycheck directly to your bank electronically