1. Copyright © 2009, Thinking Media, a division of SAI Interactive, Inc. All rights reserved. The Career Ready 101 logo is a registered trademark and Career Ready 101 is a trademark of SAI Interactive, Inc.

2. 2 Basic Money Management With an ever changing economy, it is crucial to know how to manage your money. A checking & savings account is a place where you can hold onto your money for safekeeping. You can easily access your money by writing checks, using an ATM or debit card.

3. 3 Basic Money Management To successfully manage a checking & savings account you need to know how to… correctly write a check or using a debit card keep records of your transactions make deposits reconcile with a monthly bank statement

4. 4 Basic Money Management It’s extremely important that you always know how much money is in your account! If you do not, it will result in insufficient funds -more commonly known as, “bouncing a check.”

5. 5 ‘Bouncing’ a Check Bouncing a check is writing a check for more than the amount of money you have in the bank. Knowingly writing a check for insufficient funds is against the law.

6. 6 ‘Bouncing’ a Check Most businesses will give you the benefit of the doubt. They will allow you to provide restitution before reporting you to the police. Most banks have overdraft protection. This will cover the amount of the check for a fee, which is usually pretty hefty! A $20 check could end up costing you $50 to $70 dollars or even more!

7. 7 Living Paycheck to Paycheck With today’s economy, more & more people live paycheck to paycheck. This means they write checks in advance against their upcoming paycheck. This is to ensure a payment is received on time to avoid additional late charges.

8. 8 Living Paycheck to Paycheck This scenario is not one you want to get yourself into. It can cost you a lot of money in insufficient fund fees charged by your bank and/or vendor. Most businesses now have the technology to instantly process the transaction. If the money is not available, the transaction is declined.

9. 9 Setting Up a Savings Account It is also important to set-up and manage a basic savings account. To get out of the paycheck to paycheck cycle, start saving a small amount of money each month creating an emergency fund.

10. Copyright © 2009, Thinking Media, a division of SAI Interactive, Inc. All rights reserved. The Career Ready 101 logo is a registered trademark and Career Ready 101 is a trademark of SAI Interactive, Inc.

11. 11 Checking Account Basics A checking account is important to the daily management of your money. A checking account enables you to… – make deposits – pay expenses – make purchases without the use of cash Checking accounts allow you to either write a check or use a debit card.

12. 12 Selecting a Checking Account Selecting a checking account requires research on your part. You need to select the bank & type of account that is right for your needs. Many banks offer free checking accounts. – Beware & check the specific criteria you must meet & maintain to avoid fees. Make sure you understand all of the fees & services the account provides.

13. 13 Selecting a Checking Account When looking for a checking account ask yourself… Does it require a small opening balance? Does the bank charge a monthly service fee if you go below the daily minimum balance? Will you be able to make & maintain the set minimum balance to avoid this fee? Is there a transaction fee for debit or credit card transactions?

14. 14 Parts of a Check Personal Information Most checks will have your personal information printed in the top left-hand corner of the check. This information should include: your name and others if it is a joint account, mailing address and city, state and zip code.

15. Copyright © 2009, Thinking Media, a division of SAI Interactive, Inc. All rights reserved. The Career Ready 101 logo is a registered trademark and Career Ready 101 is a trademark of SAI Interactive, Inc.

16. 16 What is a Savings Account? A savings account is… A bank account where you deposit & save money The money is not needed immediately to pay bills & expenses. A savings account will usually earn interest at a higher rate than a normal checking account with no risk of loss. Therefore, you can earn more money just by having a savings account!

17. 17 You can setup a savings account through the bank where your checking account is held. This allows you to quickly & easily transfer money between the two accounts. Most savings accounts are used as an emergency fund. If you have an unexpected expense or are out of work, an emergency savings account enables you to continue paying your bills. What is a Savings Account?

18. 18 Starting a Savings Account At most banks, you can set-up an automatic savings plan. This authorizes an automatic transfer of a specific amount of money from your checking account to your savings account each month. Direct deposit, allows you to have your paycheck directly deposited into your savings account every time you are paid.