4.2
THE Fine Print

DISCUSSION:
Discuss these questions with your classmates or with a partner.

1. 1. Have you ever read the paperwork for a checking account? 

   2. If not, do understand all of the components of your account (the rules & privileges?

VIDEO:
How to Start Using Your Checking Account Properly
Checking accounts is fundamental, as you saw in the last lesson, but it’s important to know how to use your account properly. Watch this video, starting at 0:42, to answer the questions.

1. Why is it vitally important to understand the fees your bank may charge on your checking account? 

2. Why do the women from the Financial Diet recommend using direct deposit, mobile banking, and financial apps? 

3. Checking account transactions are NOT reported to the credit bureaus and do not affect your credit score. Why is it still important to manage your checking account well? 

4. How much money do they recommend keeping in your checking account? How much do they recommend for your emergency fund (a savings account)? 

READING THE FINE PRINT:
Checking Account Agreement
As you saw in the previous video, it’s extremely important to understand the fees your bank charges associated with your checking account. You learn this information by reading your account agreement. Follow the directions on the worksheet to complete this activity. 

VIDEO:
Bank overdraft fees  
Overdraft fees, which average $35 per transaction, can devastate your checking account balance. Let’s dive a little deeper into these fees and how you can prevent them. Watch this video and then answer the questions.

1. What is misleading about the term “overdraft protection”? 

2. True or False: Once you are signed up for overdraft protection, you cannot opt-out.

3. What else did Sharon do to avoid future overdraft fees?

ARTICLE:
Bank overdraft fees 
Overdraft fees, which average $35 per transaction, can devastate your checking account balance. Let’s dive a little deeper into these fees and how you can prevent them. Watch this video and then answer the questions.

1. What is misleading about the term “overdraft protection”? 

2. True or False: Once you are signed up for overdraft protection, you cannot opt-out.

3. What else did Sharon do to avoid future overdraft fees?

ARTICLE:
3 Mobile Banking Alerts Everyone Should Activate 
In a previous video, you saw Sharon recommend setting alerts to help prevent overdraft fees. Skim this article for recommendations on three alerts you, too, should set. Then, answer the questions.  

1. In your own words, briefly describe the benefit of each type of alert below: 

A. Low Balance

B. Direct Deposit

C. Unusual Activity

2. While all three of the alerts are highly recommended, which one do you think is most important? Why?

VIDEO:
Top Tips for Checking Your Bank Statement  
With your checking account, you’ll receive a bank statement that lists all of your transactions since the last statement date. You’ll want to review it regularly. Watch the video for tips on how to read the statement. Then, answer the questions.

1. Why should you review your bank statement?

2. What are some examples of fees that can be seen on a bank statement?

3. What does the video recommend if you notice a lot of fees appearing on your statement?

READING THE FINE PRINT:
Checking Account Statement
Now that you understand the importance of a bank statement, it’s time to practice analyzing one. Follow the directions on the worksheet to complete this activity and to better understand how to read a checking account statement. 

1. What is the average fee to take money out of a non-network ATM?

2. What is the number one reason 'unbanked' consumers decide not to have a checking account?