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CHECKLIST
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TEACH YOUR TEENS HOW TO PROPERLY MANAGE A CHECKING
ACCOUNT WITH THESE SEVEN SENSIBLE TIPS.
Q:
Does the word “checking” refer to: (A) check writing or (B) the ability
to see your account balance from many different sources?
A:
The correct answer is (A), but to many teens who rarely write physical
checks, the meaning and the management of money has changed.
1
Decline the overdraft protection.
Designed to protect people from bouncing
a check that will ding their credit reports, this is a
dangerous option. If you buy a latte with insufficient
funds, that $4 coffee suddenly costs $39 thanks to a
$35 overdraft protection fee. And it’s charged on every purchase, with no alert to let you know that you’re
overdrawn. But even without overdraft protection,
you can still pay big bucks for writing a check without
the money to back it up. If you have an online account
that automatically debits your account, the bank will
still charge you a fee for being overdrawn. Moral of
this story: Check your account balance daily.
2
Sign up for online banking.
This makes it easy to follow the major lesson of
tip No. 1. You can monitor your balance and transactions online using your computer, tablet or phone, so
you can know where you stand anywhere, anytime.
Most banks and credit unions have free smart phone
apps.
3
Leave yourself a cushion.
Commit to leaving at least $200 in your account
at all times as a hedge against overdrafts and emergencies.
4
cash instead of the check. You may have to go to the
bank listed on the check to cash it and then deposit
the cash.
5
Check your balance.
And check it often! If you only use debit cards,
the balance should be very accurate. If you also use
paper checks, be mindful that once you write it, you
should mentally deduct the amount from your account. It helps to use a paper “check register” or an
app like Wallet or MINT to keep track.
6
Avoid ATM fees.
7
Setup email or text alerts.
Would you pay someone $5 to give you money
from your account? Of course not! Then why pay
needless ATM fees? Ask if your bank has a fee to use
their ATM, and if not, limit yourself to only these
machines. If you are i