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Managing Money

In: Business and Management

Submitted By wreewree11
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Having a financial plan is a crucial part to everyone. Knowing how much money you have in your account, and how much money you can take out from your account allows for quick access, thus avoiding hardship. Various accounts are used for different reasons. One should know the difference between the accounts, so that when they need to either deposit or withdraw money, they do it more efficiently and correctly. As for me, I would create a financial plan including a few accounts that will be used for different occasions. One account that I would open would be a savings account. Savings accounts are usually used to save money rather quickly for future uses. Savings accounts have higher interest rates than others. With college coming up, a savings account is a good option for me because education does not come at a cheap price. The money that I deposit would gain in value with the interest rates that coincide. A second bank account that I would open would be a checking account. Different than a savings account, a checking account is meant to be used on a daily basis and not really meant to save money like a savings account. With a checking account, I would be able to deposit and withdraw money at any time, depending on what I need it for. For example, if I want to make smaller purchases, I would withdraw money out of my checking account to pay for the item. In addition, another benefit of a checking account is that i would be able to access ATM's and have a debit card. In case of cash shortage, I could go to a nearby ATM and withdraw the money that I need. With a debit card, it is like having the physical money in your hands, but rather just carrying a piece of plastic than the real thing. When one uses a debit card, the money is immediately taken out of their account, The benefit of this is that when you make a purchase and use the card, you quickly know if money is in the account being withdrawn from. This will stop me from overspending and making purchases that are not necessary. Overall, one should have various bank accounts for different saving and spending reasons.…...

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