Financial Readiness
Module 1 · Banking Basics
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Banking Basics
Every Dollar You Earn Deserves a Safe Home.
A bank account can help you receive your pay, pay important bills, track your money, and prepare for what comes next.
A quick starting point
Do You Currently Have a Checking Account?
How money reaches you
How Do You Usually Receive Your Money?
Choose the answer that fits you best.
Your starting point
Your coach says
How money gets in
There Is More Than One Way to Deposit Money.
The best method depends on what you receive and what your bank supports.
Direct Deposit
Your employer or benefits provider sends money electronically into your account.
- Ask for the bank’s setup form.
- Provide routing and account numbers.
- Confirm the first deposit arrived.
Mobile Check Deposit
Use the bank’s app to photograph and submit a paper check.
- Endorse the check as instructed.
- Photograph front and back.
- Keep it until the deposit is confirmed.
ATM Deposit
Some ATMs accept checks and cash.
- Choose Deposit.
- Insert the check or cash.
- Confirm the amount and save the receipt.
Branch Deposit
A teller can accept checks or cash and answer questions.
- Bring the deposit.
- Complete a slip if required.
- Keep the receipt.
Deposit methods, holds, and availability rules vary by financial institution.
Quick decision
You Received a Paper Paycheck. What Could You Do?
Choose the option you would be most comfortable using.
All three can be valid when your bank supports them. The important step is to follow the bank’s instructions and confirm the deposit.
Two accounts, two jobs
Checking and Savings Have Different Jobs.
Checking is for money you use. Savings is for money you protect.
Money moving
Checking
- Direct deposit
- Everyday purchases
- Rent and bills
- Debit card use
- Automatic payments
Money protected
Savings
- Emergency savings
- Future goals
- Apartment deposits
- Car repairs
- Money you do not plan to spend today
Quick activity
Where Would You Put the Money?
Tap an item, then place it in checking or savings.
Checking
Money you expect to use soon.
Savings
Money you are protecting for later.
Know the difference
Debit Card and Credit Card Are Not the Same.
Debit Card
Uses money already in your checking account. Purchases reduce the money available in that account.
Credit Card
Uses borrowed money from a credit account. You receive a bill and must repay what you used.
Simple way to remember
Debit usually means “my money now.” Credit usually means “borrowed money to repay later.”
Paying important bills
Automatic Payments Can Help You Stay Organized.
Schedule important bills in advance, and you reduce the chance of simply forgetting them.
One account. Several important bills.
Rent, phone, utilities, and credit-card payments can often be scheduled from your checking account.
Important reminder
Automatic payment does not mean “stop checking.” You still need enough money in the account before the bill is paid.
Missed or late payments can lead to fees and, for some accounts, may affect your credit history.
Your financial paper trail
Your Bank Statements Tell a Story.
They show what came in, what went out, and whether important payments were made.
Sample Monthly Statement$1,240 balance
Paycheck deposit+$1,850
Rent payment-$900
Groceries-$145
Phone bill-$75
Savings transfer-$100
Why this matters later
When applying to rent an apartment, finance a vehicle, or apply for a mortgage, you may be asked for statements or proof of income.
Know what you can spend
Current Balance and Available Balance Can Be Different.
Pending purchases may not be fully posted yet, but they can still reduce what is safe to spend.
Current balance$950
Pending debit-card purchase−$60
Available balance$890
Why it matters
Check the available balance before spending. It is usually the more useful number for understanding what remains available.
Protect your money
Not Every Bank Account Costs the Same.
Move through the fees worth checking before you open an account.
1 of 5
Monthly Fee
A charge the bank may collect each month simply for keeping the account open.
2 of 5
Overdraft Fee
A fee that may be charged when more money is spent than is available.
3 of 5
ATM Fee
A charge for using certain cash machines outside the bank’s network.
4 of 5
Minimum Balance Fee
A fee that may apply if the balance falls below a required amount.
5 of 5
Check-Cashing Fee
A charge paid to turn a paper check into cash.
Small fees can add up over time.
Account safety
Protect Your Account Like You Protect Your Wallet.
1
Keep your PIN private
Do not write it on the card or share it with other people.
2
Never share verification codes
A bank should not ask you to send a one-time security code to another person.
3
Turn on alerts
Low-balance and transaction alerts can help you notice problems quickly.
4
Report a lost card quickly
Contact the bank as soon as you notice the card is missing.
Opening an account
What Might You Need to Bring?
Requirements vary, but these are common items to ask about before you go.
✓
Government-issued identification
Ask which forms of ID the institution accepts.
✓
Taxpayer identification
A Social Security number or another accepted taxpayer ID may be requested.
✓
Proof of address
Some institutions may request a document showing where you live.
✓
Opening deposit
Some accounts require money to be deposited when the account is opened.
Choosing where to bank
Different Institutions Offer Different Tradeoffs.
Traditional Bank
May offer branches, ATMs, mobile banking, and a wide range of products.
Credit Union
Member-owned institution that may offer competitive fees and personal service.
Online Bank
Often emphasizes mobile access and lower fees, but may have limited branch access.
Compare what matters to you
Fees, ATM access, branch locations, deposit options, customer service, mobile tools, and federal deposit insurance.
Useful words
Banking Vocabulary You Will See Again.
Tap a term to reveal its meaning.
Routing Number
Identifies the financial institution in an electronic transaction.
Account Number
Identifies your specific account. Keep it private.
Direct Deposit
Money sent electronically into your account.
Debit Card
A card that generally uses money from your checking account.
Statement
A record of account activity during a period of time.
Overdraft
Spending more than the available amount in the account.
Available Balance
The amount currently available for spending or withdrawal.
Interest
Money paid or earned based on a balance and rate.
Confidence check
How Confident Do You Feel About Using a Bank Account Now?
Quick check
Let’s Make Sure the Key Ideas Are Clear.
Which account is usually used for everyday bills?
Which account is usually better for emergency money?
Automatic payments can:
Why are bank statements useful?
Which number usually best reflects what is safe to spend right now?
Finish with one small win
Your Banking Plan.
Choose one action you can complete this week.
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Module 1 Complete
You now understand how to open, fund, use, monitor, and protect a bank account.