Word bank: borrows · everyday · institution · overdraft · upcoming

1. Checking is for spending, not for growing money.
2. Debit spends your money; credit money.
3. Watch for monthly, , and ATM fees — many accounts have none.
4. Subtract bills before deciding what you can spend.
5. Insured deposits are protected up to $250,000 per depositor, per , per ownership category.

1. Your checking account shows $60. A $45 autopay bill is scheduled for tomorrow. You want to spend $30 on food today with your debit card.

   1. What's the smartest way to think about this?

   • A. You have $60, so the $30 is fine.
   • B. Scheduled bills don't count until they're paid.
   • C. Withdraw all the cash so the bill can't take it.
   • D. About $15 is really available once the bill comes out.

2. 2. A debit card spends money you already have, while a credit card spends money you're borrowing.

   True/False

3. Account A has no monthly fee and no minimum balance. Account B charges $12 a month unless you keep at least $1,500 in it. You usually keep about $300.

   3. Which account costs you less, and by how much per year?

   • A. Account A, by $144 a year
   • B. Account B, since it's probably a better bank
   • C. They cost the same
   • D. Account A, by $12 a year

1. 1. Your balance is $310. This week you have $45 of subscriptions and phone bills and a $120 car payment coming out. What's the most you can spend without risking an overdraft?

2. 2. True or false — and explain: using a debit card builds your credit history.

1. 1. Why might a bank offer a free checking account? How does the bank still make money?

2. 2. What alerts or habits would help someone avoid overdrafts?