Money in the Bank - Why Teens Should Save

Have you ever had your parents tell you "Save yourusually provide a free monthly bank statement to
money" and "Invest your money?" Fact is, they areshow you what was deposited, what was withdrawn,
telling you something that is truthfully a good way toetc. This can help you in maintaining your bills and
get a return on your money. On top of that, its saferfinancial records.
then carrying cash in your pocket.Reason 2: NCUA Insured
I wrote a blog not too long ago (earlier today) thatWith your money in the bank, you also have the
explained the top 5 reasons on why saving with aprotection of the NCUA. The fact of this is that your
bank was such a worthy investment. Here is the 5money is insured by the NCUA for up to $100,000 in
reasons:your bank account. So if the bank were to be robbed,
Reason 5: Free ATM Card and/or Checksyou'd be reimbursed for up to $100,000 of your
This is a reason many probably won't understand, butaccount balance.
think about it though. Its always great to have accessReason 1: Earn a Return and Build Credit
to your money whenever you want it or absolutelyThat's right, 2 things have number 1 locked down. The
need it. Plus, carrying a debit card is safer then carryingfirst is that with a Savings or Checking account, you
cash around in your pockets.can earn a return on your money. Some banks offer a
Reason 4: No Responsibility Unauthorized Chargeslow APY, while some offer a high APY. For instance,
AND Overdraft Protectionthe online bank known as ING Direct offers a 4.00%
When I say this statement, I am assuming the financialAPY for up to $50,000 and 5.25% for $50,000 and
institution you are electing to get an account fromupwards to the next tier.
offers this. Before getting one, ask them about theirAllow me to explain, assume you have $1,500 in the
policy of unauthorized charges and their overdraftING Direct savings account, that is an extra $60 a
protection (if any.)year (or approx. $5 extra a month.) Aside from getting
Reason 3: Help Keep Track Of Your Financiala return, you can build you credit score as well. Its a
Recordswell known fact that having your bank account in good
With a checking or savings account, it is consideredstanding and being opened for a while can build your
much easier to track your financial records. The bankscredit score. Might as well start early... meaning today.