Choices for Managing your Money

 There are many different ways you can manage your money and pay your bills –using credit cards, ATM cards, checks, internet banking, money orders, or just plain cash.

Consider these questions when deciding how to manage your money:

• What’s your banking history? (Do you have problems with debt or do you have good credit?)
• How much money can you spend?
• How well do you keep track of your money?
• How good are your math skills?
• Can your employer deposit your paycheck directly into your account?
• How close are you to the nearest ATM or bank?
• Do you have access to the Internet to pay bills online?

Compare the different types of accounts to decide which is right for you:

Checking Account (with Checks, ATM/ Debit card, Credit card)
This is the expensive because of high bank charges, but it can be very convenient. You will pay high fees if you don’t have enough money in your account when you write a check. It’s also important to keep your credit card payments under control. Here’s what you should know:

• You must keep track of money spent (through good math skills and/or by checking your account frequently) to prevent taking out more money than you have.
• You can make ATM withdrawals and check your account balance.
• You can usually use a debit card to pay for things or draw cash at the till in some shops. A debit card is also safer than using cash because if your card is stolen or lost, you can stop money from being taken out of your account.
• If you keep a positive balance in your credit card account, you will earn high interest.
• A credit check is performed to see if you qualify for an account.

Savings Account (with Debit/ATM card)
Avoid bounced checks by using an ATM card. Here’s what you need to know:

• Accounts have lower bank charges, and usually pay higher interest.
• You can make withdrawals from ATMs and check your balance.
• You can use your debit card to buy things and to withdraw cash at the till in some shops.
• It is harder to overdraw your account when using an ATM/ Debit card instead of checks.
• It is safer than using cash because if your card is stolen or lost, you can stop money from being taken out of your account.