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The Importance of Managing Money

Introduction > Take the Test > Where Do You Get Your Money? > How To Handle Money > Budgeting and Saving > Conclusion

How To Handle Money > Checking Accounts > Saving Accounts > How to Open a Bank Account > Cash or Credit? > Advantages and Disadvantages of Credit > How to Open/Apply for an Account

How To Handle Money

Banking Your Money

Once you have an income, you want to be sure that you keep it safe and, if possible, make it earn more money for you. One of the best ways to keep your money safe is to deposit it with a reliable bank, savings and loan, or credit union.

Most of these institutions are insured by the Federal Deposit Insurance Corporation (FDIC). The FDIC ensures that if anything should happen to the institution (from a fire to financial failure), depositors (like you) would not lose their money. If you already have an account or are looking to open one, be sure to ask your institution if it is FDIC insured.

When opening a bank account, you may want to visit several banks and ask them what type of accounts they offer and what they may cost you (or, in turn, what you may earn from them.) It is perfectly legal for you to have several different accounts at the same bank or from several different banks, but most people find it easiest to work with one bank.

Just remember, your bank should not only be one that you trust and find convenient, it should also be one that offers you a good deal on your money. People often forget that banks are making money from your money! While having a bank account may make your life more convenient (and keep your money safe), you shouldn't be paying a lot for the privilege.

While different banks offer different types of accounts and deals, here is some basic information on the most common types of accounts: Checking and Savings.

Next: Checking Accounts

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