Home » Prepare Yourself Managing your Money
When you get your first paycheck or financial aid, you need a place to keep it and a way to get it when you need it. The first thing to do is open a bank account. Research banks to find one that has free or low-cost checking and branches in cities where you might be living or working. If you want to bank online, choose a bank where you can do that.
There are three kinds of cards to help you manage your money:
ATM cards: ATM cards let you bank anytime. You can withdraw money, make deposits, move money between accounts, and check your balance at an ATM machine. Usually, there is no fee if you use an ATM owned by your bank. If you use another bank’s ATM, there may be a fee ($.50-$3.00) each time you use your card.
Debit cards: Debit cards can be used in stores like credit cards, but the money comes out of your checking account automatically and immediately. Sometimes you can get a combined ATM/debit card. There will be bank charges if you use your debit card when you don’t have enough money in the bank to cover the withdrawal.
Credit cards: Credit cards are accepted almost everywhere. They allow you to charge – borrow – money up to the limit on your credit card. If you don’t pay the total amount each month, you’ll be charged interest—sometimes very high interest. And if you miss a minimum payment, you’ll pay a late fee. Be very careful about using credit cards.
You’ll have many expenses when you are on your own—rent, books, supplies, transportation, new clothes, snacks, eating out, concerts, etc. If you don’t budget, you may find that the money is gone before the end of the semester. Use the Budget Manager to get your spending under control. Then consider ways to cut back.
