1. Savings & Checking

2. Saving Why is it important to save money?
Have access when needed (emergencies or big purchases)
Saving regularly --- get used to it
Economy benefits: gives other people/businesses $ to borrow
Earn interest: fee someone pays to be able to borrow money
Rule of 72: how long will it take for your principal to double?
Ex: 72 / IR = time (years)

3. Savings Vehicles (Accounts)
Savings vehicle= place for you to save your money!
Principal = amount you initially deposited

4. Savings Vehicles
Savings Account: general savings; less access than checking; no checks! Money Market Account: part checking/ part savings; can write checks; higher interest rate; higher minimum balance Certificates of Deposit: deposit held for a term (specific amount of time) & penalized if withdraw early; earn more interest

5. Again…. Why Save? Best Budgeting Practices: Pay yourself FIRST (save!)
Don’t spend money you don’t have
Save for a rainy day
Save early/ save often

6. Checking What is the best thing to do with money you make or receive?
What is a checking account?

7. Choosing an Account…
Accounts have lots of different features. For example:
“Required balance:” min amnt that must be kept in acct at all times; can be charged fee
“FDIC-insured:” $ is safe & insured by gov’t – if sthng happens to the bank, you’ll get your $ back
Some banks pay interest in checking accts, but it’s very small
Potential fees…. ATM fee; bounced check; overdraft; service fee

8. Using a Checking Account
Deposit: money you put into your account
Check register: keep track of the checks you write (when, amount, to who, for what)
Debit cards (take $ directly out of your checking acct (like a check in card form)