In this section

Bank and Credit Union Accounts: Get an Account that Works For You

Build Your Credit Wisely

Pay Yourself First

The Cool Rule of 72

Start Thinking about Saving and Investing Now

Reasons to use financial institutions:

• Safety
  
• Security
  
• Convenience
  
• Cost
  
• Establish and build good credit

The best way to keep your cash safe from theft, loss, and fire is to open a bank or credit union account. Of all the many types of accounts financial institutions offer, the two you will probably use the most are checking and savings accounts.

Checking accounts allow you to easily transfer money to others, either by writing checks or paying for online purchases. Savings accounts are the best place to "pay yourself first"—the first "expense" listed on your spending plan.

Safe and Secure
Why use a financial institution? It is the best place to keep your money safe and secure. Banks are governed by the Federal Deposit Insurance Corporation (FDIC), which guarantees depositors up to $100,000 should the bank fail or be robbed.

The Three C's
Other than safety and security, reasons to manage your money at financial institutions are convenience, cost, and the ability to establish good credit.

ATMs, or automated teller machines, allow you to easily deposit and withdraw money, and to easily transfer money between your checking and savings account. And while you pay fees to use financial institutions, these fees are much lower than fees charged by check cashing, money order, wire transfer, and payday loan businesses.

Financial institutions track your ability to deposit, withdraw, and transfer funds responsibly. Any time you can demonstrate that you can manage your money responsibly, financial institutions will notice and consider you credit worthy—or having the ability to pay back borrowed money.