Banking 101

 Spend, Save & everything btw

Banks, Credit Unions, Online banking which one is right for you? Hey, Marby! Do you remember what it was like when you got your first bank account? For me, it was the summer of... Goodness, 2007, and maybe not so much the summer, but you get the drift. My Dad had already set up a custodial savings; you know, the one you can't withdraw money from until you are 18! I figured since I had an account, I didn't need another one, and, to be honest, my knowledge of banking was limited. Not from a lack of understanding, I was taught the basics at some point in my schooling, i.e., deposits, withdrawals, and cashing a check. Fortunately for me, my first job was working in a financial institution as a bank teller, and since then, I realized the importance of banking and why we should know more about it, definitely before 25. 

Check, Check, Checking!

My first paycheck was what we now consider as a "live" or "paper" check. To use the "funds" or "cash" from my payroll check; I needed to locate either a check cashing place or the financial institution the check "is drawn on." In order to exchange paper for money, customarily called "cashing a check." Also, a third option was setting up my very own bank account; allowing me primary control of my funds. I felt more secure placing my weekly paycheck in an account versus the alternative of walking around with my entire life in my purse!

 That meant I needed to establish direct access to my funds; this resulted in me sitting with a banker at my location and establishing a checking and savings account. Now I had a checking account; the next step was to connect the dots! The banker assisting with the set up of the accounts; led me to sign on to our employer's HR portal and submit my routing and account number; some financial institutions can provide you with a direct deposit form. This form can be downloaded through the mobile app or printed at the financial institution. Then within 7-10 business days, my payroll check was sent from my employer's financial institution directly into my brand-new checking account.

Online Banking say, "What!"

When setting up accounts, remember to pick one that best describes how you would like to access your money and what benefits you in the long run. I say this because, at the time, I was an employee, so I was placed in an interest-bearing checking account. Those account types may require you to hold a more significant balance; but at least you can earn additional benefits, ranging from a waiver of monthly fees to overdraft protection. Credit Unions may give you a higher interest rate since they are on an entirely different system than banks. Still, you may find interest-bearing checking accounts through some banks that are solely online. 

Saving for a rainy day?

Then comes the savings account! I decided to get one not because it was a two-for-one deal; I had savings goals like the purchase of my first car and college expenses. A big plus of opening an account at that time was various financial institutions had programs like "ways to save" and "keep the change." These programs were designed to save your cents on purchases made with your debit card; then place it into your savings account.

My savings account was not only gaining interest from the bank; also, I was saving sometimes an additional $20 to $50 dollars a month being a member of those savings programs. Make sure to do your research on what savings account is right for you! This particular program is not offered as much now since it has been recreated for credit cards as a cash rewards program. Again, some online-only banks run similar programs; allowing you to have a purchase "on them!" As a result of either reaching a specific savings goal or using your debit card. Those programs are also limited to what type of purchase and the cost.

When in doubt. Ask it out!

 However, you choose to have your first banking experience, don't be afraid to ask questions and do your research! Bankers are there to help! That is literally their job, and if they are anything like how I was working at a financial institution! They genuinely want you to like where you do your banking and will help as much as they can.