Question by ?purple.: Tips on saving money… should I trust a bank?
I am getting ready to graduate high school. I’m at that transition in life to where I know I need to save money…I just don’t know how. If I put money in the bank how should I do it? I really need suggestions. If I have money on me I will spend it. Please help? I need something that’s going to help me not spend the money.
Best answer:
Answer by rpg
Well, once you are an adult on your own you really will need a bank account. People without bank accounts have a very difficult time cashing paychecks and paying bills. Most banks charge a fairly hefty fee to cash checks for people who don’t have a bank account with their bank – IF they’ll cash the check at all. So you’ll need a bank account.
Assuming that you are in the USA, bank accounts are safe. They are insured by the FDIC. Even if your bank fails (extremely unlikely) the bank’s insurance will cover the amount of money that the bank owes you (i.e., the amounts you have on deposit) up to at least $ 100,000. Credit union accounts might be more favorable even than banks. This is because credit unions are membership organizations so they tend to pass along more favorable interest rates to their own members.
In order to save money you need an income. A good habit to get into starting with the very first paycheck you earn would be to automatically transfer 10% of your paycheck into savings. Leave the other 90% of it in a checking account, to use for your everyday expenses. Don’t touch the money in your savings account for at least 2 years. At the end of 2 years you should have more experience managing money, and you’ll have a nice little savings account. Then you can start to make choices about whether to keep it in savings or invest it in other ways, such as a CD, savings bonds, mutual funds, etc.
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