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

period of time—a night, a weekend, a trip to the mall—try just taking out a set amount of cash from the ATM and setting that as your limit. That way, once you’re out of cash, you’re done spending. This ensures not spending more than you’re able to.
    A debit card is like an ATM card with extra powers. A debit card lets you make purchases at stores and online. The debit card will usually have a Visa or MasterCard logo on it, so it may look like a credit card. However, there is one important difference: When you pay for something with a debit card, the money is taken right out of your checking account. So, you need to make sure you have enough money in your account to pay for whatever it is you want to buy. Otherwise your transaction may be declined or your account might become overdrawn .
    Some things to consider with debit cards:
• They often have daily spending or withdrawal limits. So if you try to buy something that is more than that limit, your transaction may be declined, even if you have more than enough money in your account.
• The security protection rules may differ somewhat from credit cards. Be sure to review your bank’s policies online so you know what risk you may face should someone make unauthorized charges or purchases with your card.
• There is more risk involved, in that if someone gets a hold of your card or your account numbers, the person can take money right out of your bank account. (Yes, the bank may credit that amount back if you file a fraud dispute, but that could take some time.)
• For certain transactions, a debit card may not be acceptable. For example, some car rental agencies will not accept debit cards.

Chapter 6
Online Banking and Bill Paying
    You do pretty much everything else online, so why not manage your money online? Many banks offer online banking—and, in fact, they often encourage people to use it. It saves the bank the time and expense of sending out paper statements and allows you to do a lot of transactions yourself without having to bother a teller or other bank employee. It’s more convenient for you because you can do your banking from the comfort of your own home, at any time of day or night. So it’s a win-win for everyone!

    Advantages of Online Banking
    Online banking offers some advantages when compared to going to an actual bank location to do your banking business. As we’ve already mentioned, it’s very convenient. You can access your account online from wherever you are (as long as you have an Internet connection, of course). You can do your banking at any time, day or night, and you don’t have to get in the car and drive anywhere, which saves you a lot of time. The transactions themselves are often done very quickly, as compared to standing in line at a bank and waiting for a teller.
    Many people also find that it’s easier to keep track of their banking transactions and balances when they use online banking, because all of their activity is all recorded and available for review right there.
    Also, if you use any sort of budgeting software program, it usually is designed to interact well with your online banking system.

    Disadvantages
    There are a few drawbacks with online banking. First, obviously, you aren’t dealing with an actual person, so you can’t ask questions. (Although most online banking systems do allow you to submit a question or get help, but it may take several hours or even a day or more to get an answer.)
    Also, there may be some delay in when your transaction is processed or officially posted to your account. For example, transfers made after a certain time of day may not be posted until the next day. Be sure to check your bank’s site for details as to processing times.
    Some people worry about security issues when banking online. We will discuss this more in this chapter.

    Direct Deposit
    Direct deposit is when your paycheck or other payment is automatically deposited into your bank account. This is very convenient