Checking vs. Saving Accounts...What’s The Difference? — Transcript

Full transcript

1. 0:00what's up everyone this is beast boy and
2. 0:02welcome to another video in the versus
3. 0:04style
4. 0:04finance for the youth series if you
5. 0:07missed last week's video you can click
6. 0:08up to the top right corner and check it
7. 0:11out so
8. 0:12for today's topic we're going to talk
9. 0:13about checkings accounts
10. 0:15savings accounts and how you use them so
11. 0:17let's get right into it
12. 0:31for those of you who are just entering
13. 0:33the workforce maybe you've got your
14. 0:34first job
15. 0:35you might be getting paid with a check
16. 0:38so
17. 0:38when you have a check what you do with
18. 0:40it how do you get your money
19. 0:42what you're going to do is you're going
20. 0:43to take it to your local banking
21. 0:44institution whichever institution you
22. 0:46want
23. 0:46and you're going to open a checking
24. 0:48account so this account is basically a
25. 0:50cash deposit account
26. 0:52that keeps all of your money safe so you
27. 0:54don't have to carry a bunch of cash
28. 0:55[Music]
29. 0:56around
30. 0:59because obviously that's not safe right
31. 1:01so
32. 1:02when you open a checking account the
33. 1:04maximum amount of money that you can
34. 1:06withdraw
35. 1:07or use from that account is the same as
36. 1:10the maximum amount of money that you
37. 1:12have deposited in that account
38. 1:13so for example if you got a check for
39. 1:15800
40. 1:17you put it into your checking account
41. 1:18then when you want to go and purchase
42. 1:20something you cannot use
43. 1:21more than 800 because that is the
44. 1:23maximum amount allowed
45. 1:25that you have in your account when you
46. 1:27have a checking account
47. 1:28you want to make sure that you do not
48. 1:31withdraw
49. 1:31more money than you have deposited in
50. 1:33that account what happens is if you take
51. 1:36out too much money
52. 1:37either your transaction will be denied
53. 1:39at the store which can be
54. 1:41one embarrassing but two show you that
55. 1:43you have no more money left in your
56. 1:44account
57. 1:45but also if that transaction does happen
58. 1:48to be
59. 1:48pulled out the bank will charge you an
60. 1:50overdraft fee which could range from 25
61. 1:53to 35 and you don't want to have to pay
62. 1:55an additional fee
63. 1:56for the money that you don't have yeah
64. 1:58so make sure that when you are using
65. 2:00your checking account
66. 2:01you keep your budgets right so you know
67. 2:04how much money you have in your account
68. 2:06and how much you have to spend
69. 2:07usually when you open a checking account
70. 2:10you're also going to be issued
71. 2:11a debit card so when you get this little
72. 2:14plastic debit card
73. 2:15that is essentially a cash card all that
74. 2:19money that you have
75. 2:19access to on your debit card is the
76. 2:22exact same amount of money
77. 2:23that is in your checking account so if
78. 2:25you want to purchase something
79. 2:27online or you want to purchase something
80. 2:28without cash a debit card
81. 2:30is what you want to use but again just
82. 2:33like everything else you want to make
83. 2:34sure you budget correctly
84. 2:36so you know that you are spending the
85. 2:37right amount of money that you can
86. 2:39afford
87. 2:40now with a debit card if you want to
88. 2:42actually take out
89. 2:44cash and pay for something with cash a
90. 2:46debit card gives you access
91. 2:48to atms you can go to a lot of local
92. 2:50atms usually your banks have their own
93. 2:52atm
94. 2:53or they have atms that they partner with
95. 2:55called qualifying atms
96. 2:57that means that when you go to the atm
97. 2:59you can take out your cash
98. 3:00for free if you happen to not go to a
99. 3:02qualifying atm
100. 3:04they may charge you a two to three
101. 3:06dollar fee so as much as you can
102. 3:08you want to avoid going to
103. 3:10non-qualifying atm so make sure every
104. 3:13time
105. 3:13you have a checking account and a debit
106. 3:15card you check which atms you can go to
107. 3:17for free
108. 3:18now a savings account is a little bit
109. 3:20different savings account
110. 3:22is just that an account for saving your
111. 3:25money
112. 3:26so this isn't money that you always want
113. 3:27to access easily in the way a checking
114. 3:30account is
115. 3:31instead this is an account where you
116. 3:33want to slowly grow it
117. 3:35every month after you get your paycheck
118. 3:38good practice is to put away five to ten
119. 3:41percent
120. 3:42of each paycheck into a savings account
121. 3:45automatically
122. 3:46or if you prefer manually if you do have
123. 3:48direct deposit with any of your jobs
124. 3:51you can sign up and do it in a way where
125. 3:54every time you get a paycheck issued
126. 3:56they can put most of the money into your
127. 3:58checking account for easy access
128. 4:00and then they'll put some of it away
129. 4:01into your savings account so you can
130. 4:03literally
131. 4:04mark that five to ten percent that you
132. 4:05want to be put away
133. 4:07every month with your direct deposit if
134. 4:09not you just have to do it yourself
135. 4:11manually now to calculate what that five
136. 4:14to ten percent would be
137. 4:15for you basically you have to take the
138. 4:17amount of your paycheck so let's say we
139. 4:19go back to the
140. 4:20previous example of eight hundred
141. 4:21dollars let's say i wanna only say
142. 4:23five percent every single time i get a
143. 4:26800 paycheck
144. 4:27i'm gonna multiply that 800 by the
145. 4:30decimal
146. 4:30point zero five so just a little bit of
147. 4:33math here
148. 4:34um you have to kind of understand
149. 4:35percentage conversions to decimals
150. 4:38which you can you know read up on and
151. 4:39then do a little practice on yourself
152. 4:41but for the most part it's pretty simple
153. 4:43it'd be 800 times .05
154. 4:45and what that number will be is how much
155. 4:47you want to save after every paycheck
156. 4:49in this case that's 40 so every time you
157. 4:52get that 800
158. 4:53paycheck you want to make sure you put
159. 4:5540 dollars away to your savings
160. 4:57and you do not touch it yeah so for you
161. 5:00really
162. 5:00all you have access to is 760
163. 5:03and this is a good practice to adopt to
164. 5:06build your savings account
165. 5:08one thing that you do want to be careful
166. 5:10about with a saving account
167. 5:12is your transfer fees again the point of
168. 5:15a savings account is not
169. 5:16an account where you want to just easily
170. 5:18pull out money
171. 5:19all the time whenever you need it you
172. 5:21want to try to budget just so you can
173. 5:23just use whatever
174. 5:24is in your checking account and not
175. 5:25touch your savings account at all
176. 5:27so what happens with a savings account
177. 5:29is usually most institutions
178. 5:31only allow you a couple of amount of
179. 5:33transfers out of that account
180. 5:35per month the average is around three
181. 5:37transfers per month so let's say
182. 5:39you're a little bit short of money it's
183. 5:40an emergency you could maybe transfer up
184. 5:43to three times from your savings account
185. 5:44and put money back into your checking
186. 5:46account
187. 5:46so you can use it because your debit
188. 5:48card will not use the money that's
189. 5:50directly in your savings account
190. 5:52it will only use the money that's in
191. 5:53your checking account
192. 5:55but let's say you go past that three
193. 5:57transfers and you just get transferring
194. 5:58transfer and transferring every time
195. 6:00you need money then the bank's gonna
196. 6:02start charging you fees for every time
197. 6:03you transfer
198. 6:04so imagine every time you transfer 40
199. 6:07out the bank takes 15.
200. 6:09so really all you have left is 25 you
201. 6:11don't actually get that 40
202. 6:13that you meant to transfer out so make
203. 6:15sure that you're always
204. 6:16careful about this and try not to touch
205. 6:18your savings account as much as you can
206. 6:21all right y'all so that is it for
207. 6:22today's video i hope you learned a
208. 6:24little bit of something
209. 6:25about checkings accounts savings
210. 6:27accounts and how to properly use your
211. 6:29debit card so if you enjoyed this video
212. 6:32please make sure you like
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226. 6:59peace and love and catch in the next
227. 7:01video
228. 7:04[Music]