Money $marts: Pay Your Way

Fear the Fees!

One thing to be super careful about with ATMs is the fees that most banks charge to use their machines if you’re not their customer. Plus, your bank may charge you an extra fee for not using its own ATMs!

It’s best if you use only your bank’s ATMs for withdrawals and deposits. It can save you a serious bundle!

Cash isn’t the only way to pay. Checks and debit cards can be more convenient, and easier to keep track of, than those dollars stuffed in your purse (not to mention the loose change at the bottom of it). Sound good to you? Open a checking account at a bank or credit union. The only catch is until you’re 18, a parent or other adult needs to co-sign.

After you choose a bank, maybe where your parents have an account, you’ll be able to write checks. You’ll also snag an ATM card or a debit card. Each time you use it, it subtracts the amount of a purchase directly from your account.

When you write a check, you’re telling the bank to move money from your account to the account of the person you’re paying. So, you’ll always need to make sure that your account balance is big enough to cover the transfer. Otherwise, the check will bounce, and you’ll get charged a fee. That’s not only totally embarrassing, but it hurts your credit rating.

Everybody jokes about how hard it is to balance a checkbook. What’s up with that? It’s just adding and subtracting, right?

Well, it actually can be trickier than it sounds. But you’ll be off to a great start if you make sure to use the register. That’s the little booklet that has lines and spaces where you can mark down your transactions.

So, each and every time you withdraw money at an ATM, or write or deposit a check, you jot down the amount, the date, and the number of the check. Then it’ll be easier to keep a running balance–and know how much money you actually have!

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