LESSON THREE: CHECKING AND SAVINGS
What is a Checking Account?
A checking account is a bank account that allows access to your money. It is the account that is normally used to pay bills. Money in a checking account can be accessed by writing a check, setting up an automatic transfer or using debit card. These transactions are debits and subtracted from account balance. A deposit is a credit and added to account balance. When a checking account is opened, student will need to keep track of its balance. This will prevent student from overdrawing their account. It is also very important to balance account each month, as this will help catch any mistakes student or bank has made.
An example on how to balance checkbook: http://www.wikihow.com/Balance-a-Checkbook
What is Savings Account?
A savings account is the most basic account for a student who is just beginning to save money. Savings account offer interest on the account which interest rate is low. Savings account also limits access to the funds. The only ways you can access the funds are through a withdrawal at the bank or at the ATM. Saving should include an emergency fund or at least three to six month worth of expenses.
A checking account is a bank account that allows access to your money. It is the account that is normally used to pay bills. Money in a checking account can be accessed by writing a check, setting up an automatic transfer or using debit card. These transactions are debits and subtracted from account balance. A deposit is a credit and added to account balance. When a checking account is opened, student will need to keep track of its balance. This will prevent student from overdrawing their account. It is also very important to balance account each month, as this will help catch any mistakes student or bank has made.
An example on how to balance checkbook: http://www.wikihow.com/Balance-a-Checkbook
What is Savings Account?
A savings account is the most basic account for a student who is just beginning to save money. Savings account offer interest on the account which interest rate is low. Savings account also limits access to the funds. The only ways you can access the funds are through a withdrawal at the bank or at the ATM. Saving should include an emergency fund or at least three to six month worth of expenses.