Now that you have some money of your own you are ready to open a bank account. But how does this banking thing work? Read on to find out!
Opening an Account
The first thing to consider when you open a bank account is what type of account you would like. If you want to be able to write checks or have a debit card (a card that looks like a credit card but takes money directly out of your account) then open a checking account. If you are saving money for a goal (like a new car) then open a savings account.
Choosing a bank
Once you know the type of account, the next step is to choose your bank or credit union (like a bank but is supposed to be not for profit). When you choose where your account will be look at the services it offers. These can include does the account pay interest (money to you for keeping your money there), offer any type of overdraft protection (which they can charge you a lot of money for if you write a check for more money than is in the account). Also look at how convenient it is. Is it open when you want it to be? Is it located someplace that you go? Also, look at any pitfalls associated with the account. Do you have to have at least so much money in the account?
Open the account
The next step is to actually open the account. Go to the location where you want to open the account. Take an ID, the money for the account, and your social security number with you. Go up to the desk and tell them what you would like to do, and they will be happy to help you. You might even want to call ahead to make sure you do not need anything else.
If you have a checking account remember that the only money you can take out, is money that you have already put in. Otherwise they get very upset with you.
Writing a Check
To write a check first write the person's or comporation's name in the Pay to the order of line. Next fill in the box next to the $ with numbers for how much the check is for. Then write out in words the numbers you just wrote in the line on the other side of where you wrote the numbers. Lastly, do not forget to sign the check.
Keeping Track of Where the Money Goes
Keep a log of all the money that goes in and out of your account. When you get your checks they will often come with a book just for this. Do not forget to add in the purchases you make with your debit card, even if you use if like credit to avoid bank fees. The bank will charge you money if you spend to much.
For more information on banking check out this website. For more information on balancing your checkbook look at Money, Money, Money: How to Get and Keep It by Tom Morgan-J 332.024 Mor