Taking care of your money can have a big impact on your future in the United States. This section discusses personal finances, paying taxes, and ways in which you can protect yourself and your money.
Personal Finance
Getting an Account
In the United States, two types of financial institutions that offer personal financing accounts are banks and credit unions.
A bank account is a safe place to keep your money. Banks have different kinds of accounts. Checking accounts and savings accounts are two common ones. You can open an account for yourself or a joint account with your spouse or another person. Banks may charge you fees for some of their services.
A credit union is another place to safeguard your money. Your employer may have a credit union that you can join, or you may be able to join one, depending on where you live. Credit unions provide most of the same services as banks but may offer extra services. Compare the services, fees, coverage, hours, and locations of financial institutions before you open an account so you can choose one that best meets your needs.
When you open an account, you will be asked to prove your identity. You can use your Permanent Resident Card or driver’s license. You will also need to give the financial institution some money—called a deposit—to put into your new account. When you take money out of your account, this transaction is called a withdrawal. You can withdraw money by writing a check, going to an automated teller machine (ATM), or filling out a withdrawal form at your financial institution.
Using Your Account
You can get money from your account by using a personal check, ATM, or debit card. Be sure that only you and your joint account holder (if you have one) have access to your account.
Personal Checks: You can get a supply of personal checks when you open your checking account. These checks are forms that you fill out to pay for something. Checks tell your financial institution to pay the person or business you have written on the check. Keep these checks in a safe place and ask your financial institution how to order new checks when you have used your supply.
ATM Cards: You can ask your financial institution for an ATM card. An ATM card is a small plastic card linked to your account. Use this card to get cash or deposit money in your account at an ATM. Usually you do not pay a fee for using your own financial institution’s ATM. You will most likely be charged a fee if you use an ATM owned and operated by another financial institution.
The financial institution staff will show you how to use an ATM card and give you a special number, called a PIN (personal identification number), to use at the ATM. Be careful when using ATMs. Never give anyone your PIN or ATM card because he or she could use it to take money out of your account.
Debit Cards: Your financial institution may give you a debit card to use for your checking account. Sometimes your ATM card can also be used as a debit card. Never give anyone your PIN or debit card because he or she could use it to take money out of your account. You can use your debit card to pay for something at a store and the money will automatically be taken out of your checking account to pay the store.
Cashier’s and Certified Checks: These are checks that a financial institution creates upon your request. You give the financial institution money and then they create a check for that amount of money to the person or business you want to pay. Financial institutions may charge a fee for these checks. Ask your financial institution about other options that may be available to you.
Write down the numbers for all accounts and debit, ATM, and credit cards. Also write down the phone numbers of these companies. Keep this information in a safe and secure place. If your wallet is lost or stolen, call the companies and cancel all of your cards. This will keep someone else from using your cards illegally.
Protect Yourself and Your Money
Avoid Identity Theft
Identity theft means someone has stolen your personal information, such as your Social Security or bank account numbers. They can use it to take money from your accounts or open a credit card in your name. Identity theft is a serious crime. Protect yourself by:
● Making sure you know and trust the people or businesses you give your personal information to, especially on the phone or the Internet.
● Leaving your Social Security card at home in a safe place. Do not carry it with you.
● Carrying with you only the identification documents or credit cards you need at the time. Leave the rest at home in a safe place.
● Tearing up or shredding any paper or forms with your personal information on them before throwing them in the trash.
● Selecting unique passwords for each account. Do not use the same password, as that could put your personal information at risk.
“Phishing” and Other Scams
According to the Federal Trade Commission (FTC), “phishing” is when an unknown source sends an email or pop-up message to you claiming to be from a business or organization with which you are associated, such as a bank, an online payment service, or even a government agency. The message may include links to websites asking you to update your account or personal information. The links in the email connect to a website that looks like a legitimate organization’s site, but the website is not real. Scammers created the website to steal your identity so that they can charge money or commit crimes in your name.
Be aware of phone scams that target individuals, including immigrants. A scammer may call you and ask for money or threaten you. They will likely have some information about you and their phone number may look like an official one. Government agencies will never call you to ask for money or threaten you. If you receive a call like this, hang up and call the official number for the business or government agency to check if it is a scam.
To avoid getting scammed, here are important things to remember:
● If you get an email or pop-up message that asks for personal or financial information, do not reply.
● Do not give out your account number or password over the phone unless you’re making the call to a company you know is reputable. If you have questions about a company, check with your local consumer protection office or Better Business Bureau.
● Review credit card and bank account statements as soon as you receive them to check for unauthorized charges.
● If you have a computer, use anti-virus and anti-spyware software, as well as a firewall. Update them regularly.
● Be careful when opening attachments or downloading files from emails. If you do not know who sent the message to you, do not open the attachment(s) or download the file(s).
● If you suspect an email or website is fraudulent, report this information to the real bank, company, or government agency