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Good Advice for Alesandra Monter

John was talking with his friend, Alesandra Monter. She has a summer job at 62 Flavors and Counting ice cream shop. She told John that her employer paid her with a check. She wanted cash, so she took the check to the "Cash 'n Check" store down the street. She paid $7 to have her check cashed and showed John all the cash in her wallet.

John was very surprised. He knew he didn't pay to cash checks or withdraw money at his bank — but he didn't know much about check-cashing services. He did some research on the Internet and learned that check-cashing services are used by people who don't have a checking or savings account. While the services are quick and convenient, these are the same services usually offered for free by local banks.

Use your knowledge of bank accounts and check-cashing services to answer the following questions.

True or False: People are able to make deposits to and withdrawals from both savings accounts and checking accounts.
 

A. True

B. False

True or False: Check-cashing services charge minimal fees for cashing checks.

A. True

B. False

True or False: Usually, people are able to cash checks for free or for a much reduced fee (less than a few dollars a month) at the bank where they have a savings or checking account.

A. True

B. False

True or False: There are fees or costs associated with checking accounts.

A. True

B. False

True or False: Savings accounts pay interest on the balance in the account.

A. True

B. False

True or False: It isn't legal for companies to require employees to use "direct deposit."

A. True

B. False

True or False: With a checking account, you can write checks to pay for many types of goods and services.

A. True

B. False

True or False: There are no fees associated with savings accounts.

A. True

B. False

True or False: You may use an ATM or debit card with both savings and checking accounts.

A. True

B. False

True or False: Banks and credit unions are safe places to keep your money.

A. True

B. False

True or False: Check-cashing services are open more hours than banks and have convenient locations.

A. True

B. False


Think about this:

  • If your employer didn't require direct deposit, would you open a checking account?
  • How would you know how much money is in the account, particularly as you begin to withdraw, spend and make additional deposits?