Free Don't Break the Bank: A Student's Guide to Managing Money by Peterson's Page A

means that the account you wrote a check from had insufficient funds to cover the amount you said you were good for. Not only is this totally embarrassing, it also results in fees and charges that add up quickly. Generally, your bank will charge you at least $30, the payee (whoever you wrote the check to) will also charge you at least $25, AND you still owe the amount of money you wrote the check for. It is very important that you are aware of every instance of spending: your balance is how much is in your account, not how much you would have left after all of your checks have cleared. If you check your balance and it’s surprisingly (delightfully!) high, then be sure you’re taking all of the checks you’ve written into account. It’s not uncommon for young spenders to spend beyond their means because they simply are not remaining conscious of every cent they said they were good for.

    Putting Things in Balance
    One way to make sure you know exactly where your checking account stands is by balancing your checkbook. This means making sure your total, after all the transactions for the month, matches the current balance on your bank statement.
    Here’s an easy step-by-step guide to balancing your checkbook from Practical Money Skills for Life at http://www.practicalmoneyskills.com/:
• Step 1: Get a copy of your monthly bank statement. These should be mailed to you each month. If you misplace a statement, you can ask for a replacement (usually for a fee) or get a copy online (usually for free). You may have already signed up for online bank statements and should be receiving e-mail or text notices from your bank when your statement is available.
• Step 2: Compare your statement to your checkbook register. Throughout the month, you should have been recording every deposit and purchase or withdrawal. If you see any charges or deposits on your statement that aren’t in your register, add them.
• Step 3: Record any fees or balance adjustments that may appear in your statement.
• Step 4: Subtract from your register’s balance any checks you have written but that have not yet cleared the banking system.
• Step 5: Check and see if the total matches your statement. If it does, your account is balanced. If not, go back through your register and see if you’ve missed anything or if you’ve made a mistake with your math.
“The FDIC —that’s short for Federal Deposit Insurance Corporation—is part of the U.S. government. The FDIC was created by Congress in 1933 after a terrible economic period called “The Great Depression” when thousands of banks shut down and families and businesses all across America lost money they had deposited in those banks. The FDIC’s primary job is to make sure that, if a bank is closed, all of the bank’s customers will get their deposits back—including any interest they’ve earned—up to the insurance limit under federal law. In the 70-plus years since the start of the FDIC, we have responded to about 3,000 bank failures, and we are proud to say that no depositor has lost a single penny of insured money.”
~ Courtesy of FDIC Consumer News, http://www.fdic.gov/sum_06_bw.pdf

    BTW, You Can Use an ATM
    When you have a bank account, you will often receive an ATM card (ATM is bank lingo for automated teller machine). An ATM card allows you to get your money from a machine 24/7, even if the bank is closed. You can also make deposits and do other banking at the ATM. In order to use your card at the ATM, you will need to enter your PIN , your private security code. Make sure you memorize your PIN, and don’t tell it to anyone. If you do, you run the risk that this person will be able to get your money if he or she gets a hold of your ATM card.
    Warning: Some ATMs charge you a fee to use the machine, especially if the ATM isn’t operated by the bank at which you have the account.

    Debit or Leave It
      
       Tip: To impose a limit on how much you’re going to spend in a set