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The Cost of Banking
  • Does your checking account earn interest?
  • Are you taking advantage of direct deposits into interest-bearing accounts?
  • Are you banking with institutions that do not charge outside ATM fees?
  • Is that 3% money market you opened eight months ago still paying you 3%?
  • Do you get charged for talking to a teller?
  • As you accumulate money, are you repositioning it ito higher-yielding investments?
Did You Know?
  • So, you need a quick $20. All you can find is a local bank, not yours. Did you know that as a non-client the average fee charged is $1.50 for that ATM transaction plus your bank’s fees. If your bank charges $1.50, for a total of $3.00. That is a 15% penalty on your $20 withdrawal!
Debt Management

Debt management is critical to financial success. If used wisely, debt can help you create wealth. For example, good debt includes a home mortgage, school loans and small-business loans. However, if used unwisely, debt can keep you from reaching even the most modest financial goals.

Analyze your personal debt by completing the Financial Overview Quick Report

Advantages of Having Debt

• Provides ability to trade future income for current enjoyment

• Convenient

• Can "free up" money that might be better invested elsewhere

Disadvantages of Having Debt

• Ties up future income

• Can lead to overspending

• Increases total cost of goods

Debt Management Tips

• Consider all possible sources of credit

• Shop for the lowest rates and the best terms

• Do not borrow more than can be repaid on time, considering both present and future income

Borrowing for Investment

• After-tax return must exceed after-tax cost of borrowing

• The return is subject to risk, but debt must be repaid

• If you find your debt is getting too large, move quickly to resolve problems

• Do not borrow for an asset that depreciates