A checking account is a bank account used for

EVERYDAY TRANSACTIONS

• Deposit money (paychecks, cash)

• Write checks or use debit card

• Pay bills electronically

• Withdraw cash from ATMs

Monthly Maintenance Fee: $5-$15 (often waived)

Overdraft Fee: ~$35 (spending more than you have)

ATM Fee: $2-$5 (using out-of-network ATMs)

Minimum Balance: Some accounts require keeping a minimum amount

A check register is a LOG or RECORD

of all transactions in your account

• Helps you track your balance

• Prevents overdrafts

• Catches errors or fraud

Step 1: Record starting balance

Step 2: ADD all deposits (+)

Step 3: SUBTRACT all withdrawals (−)

Step 4: Calculate new balance

Step 5: Compare with bank statement

New Balance = Old Balance + Deposits − Withdrawals

Starting balance: $500

Debit card uses YOUR OWN MONEY

from your checking account

• Money is taken out IMMEDIATELY

• Can only spend what you have

• No interest charges

• No debt

Credit card uses BORROWED MONEY

from the bank

• Pay later (monthly bill)

• Has a credit LIMIT

• Charges INTEREST if not paid in full

• Can build credit history

A credit report is a DETAILED RECORD

of your borrowing and repayment history

• Personal information

• Credit accounts (cards, loans)

• Payment history

• Outstanding debts

A credit score is a THREE-DIGIT NUMBER (300-850)

that shows your creditworthiness

Higher score = More trustworthy borrower

750-850: Excellent (best rates)

700-749: Good

650-699: Fair

600-649: Poor

Below 600: Very Poor

✓ Loan approval: Higher score = easier approval

✓ Interest rates: Better score = lower rates

✓ Credit limits: Higher score = higher limits

✓ Renting apartments: Landlords check credit

✓ Getting jobs: Some employers check credit

1. SCHOLARSHIPS (Free Money)

• Based on MERIT (grades, sports, talents)

• Do NOT have to be repaid

• Apply through schools, organizations

2. GRANTS (Free Money)

• Based on FINANCIAL NEED

• Do NOT have to be repaid

• Most common: Pell Grant (federal)

3. STUDENT LOANS (Borrowed Money)

• MUST be repaid with INTEREST

• Federal loans: Lower interest, flexible

• Private loans: Higher interest

4. WORK-STUDY (Earn Money)

• Part-time job on campus

• Earn money while studying

• Build work experience

1st: Scholarships and Grants (FREE - don't repay)

2nd: Work-Study (EARN while learning)

3rd: Federal Student Loans (lower interest)

4th: Private Student Loans (higher interest)

More Education = Better Jobs = Higher Income

(generally speaking)

✓ More education opens doors to MORE career options

✓ Higher education typically leads to HIGHER lifetime earnings

✓ Specialized skills and training increase earning potential

✓ Career choice matters as much as education level

✓ Experience also increases income over time

Important: While education generally leads to higher income, passion, skills, and hard work also play major roles in career success!

✓ Always track your money - use check register or app

✓ Avoid overdrafts - know your balance before spending

✓ Debit card = your money, Credit card = borrowed money

✓ Pay credit cards in full each month to avoid interest

✓ Good credit score opens many financial doors

✓ Apply for scholarships - free money for college!

✓ Loans must be repaid - borrow only what you need

✓ Education is an investment in your future income

✓ Start building good habits now - they last a lifetime

✓ Ask questions - financial literacy is a lifelong journey!

Check Register Balance:

"Start with what you got, ADD what comes in, SUBTRACT what goes out!"

Debit vs Credit:

"DEBIT = Directly from your bank, CREDIT = Borrowed that you must payback!"

Credit Score:

"750 is great, under 600 not so straight - pay on time to keep it high!"

Paying for College:

"Scholarships and Grants are FREE, Loans you must repay - don't you see?"

Education & Income:

"More you learn, more you earn - education's value at every turn!"