Money and taxes · Easy · about 1 hour to open; 15 minutes a month to reconcile

Open and Use a Bank Account

A bank or credit union account keeps your money safer than cash at home and lets you get paid by direct deposit, pay bills, and use a debit card. Knowing your real balance at all times is the skill that keeps you clear of fees.

When to teach it: Watch from about 8, help from about 11, do it alone from about 16.

You'll need

A photo ID and any other papers the bank or credit union asks for (check its website or call first)
Money for your first deposit
A check register, notebook, or spreadsheet
Your monthly statement (paper or online)

Step by step

Tick each step as you go if you like; ticks stay on this device.

Know the two main account typesA checking account is for everyday spending, with a debit card, ATM access, and bill paying. A savings account is for setting money aside for goals and emergencies, and it may limit how often you can take money out.
Choose an insured bank or credit unionCheck that a bank is FDIC-insured with the FDIC's BankFind tool; credit unions are insured by the NCUA. Standard FDIC coverage is $250,000 per depositor, per insured bank, for each ownership category.
Ask about feesBefore you open the account, ask about monthly fees, minimum balance fees, ATM fees, and what happens if you spend more than you have.
Decide about overdraft coverageA bank can't charge an overdraft fee on one-time debit card purchases or ATM withdrawals unless you opt in. If you don't opt in, those purchases are usually declined instead. Checks and automatic payments can still bring fees.
Record every transactionWrite down each deposit, debit card purchase, ATM withdrawal, check, automatic payment, and fee. Update your balance each time.
Watch for pending transactionsA debit purchase may take a day or two to post, so the balance in your app can differ from what you've really spent. Go by your own running balance.
Reconcile each monthWhen your statement comes, check off each item that matches your register. Add any fees or purchases you missed. Then adjust the statement balance for items that haven't cleared yet and compare the two.
Report errors fastIf something is wrong or you don't recognize a charge, tell your bank right away, and no later than 60 days after the statement date. Follow up in writing and keep a copy.
Protect your debit cardIf your card is lost or stolen, call your bank right away. Reporting within 2 business days generally limits what you can lose to $50 or less.

Math

How it works: Running balance and reconciling

Your balance changes with every transaction. Each new balance is the last balance plus money in, minus money out. Keeping this running total is how you avoid spending money you don't have.

Worked example: start with $250.00. Deposit a paycheck of $833.50: $1,083.50. Buy groceries with a debit card for $46.25: $1,037.25. Take $40.00 from an ATM: $997.25. Your $50.00 phone bill auto-pays: $947.25.

Reconciling: your statement shows an ending balance of $994.25 and a $3.00 ATM fee you didn't write down. Subtract the fee in your register: $947.25 − $3.00 = $944.25. The $50.00 phone payment hadn't cleared when the statement was made, so subtract it from the statement balance: $994.25 − $50.00 = $944.25. The two numbers match, so your account balances.

new balance = old balance + deposits − withdrawals; adjusted statement balance = statement balance − uncleared checks and withdrawals + uncleared deposits

Try it: Use play money and a paper register. One person is the bank and the other is the account holder. Make five deposits and withdrawals, keep a running balance, then compare it with the bank's record.

Keep learning: Ray's Arithmetic

Teaching it to your kids

If your bank or credit union offers a youth savings account, open one together and let your child make the deposits.
Show your child your banking app and point out pending versus posted transactions.
Let a teen keep the register for one family account for a month, then reconcile it together.

Tips

Turn on balance alerts on your phone if your bank or credit union offers them.
Write down ATM fees and other fees too; they're easy to miss.
Keep savings in a separate account so it doesn't mix with everyday spending.
Deposit insurance covers checking, savings, money market deposit accounts, and CDs. It does not cover stocks, bonds, mutual funds, crypto, or what's in a safe deposit box.

Common mistakes

Mistake	Instead
Going only by the balance in the app	The app may not show pending purchases or checks yet. Keep your own running balance.
Forgetting automatic payments	Write each recurring payment in your register or on a calendar before it happens.
Never reading the monthly statement	Reconcile every month so you catch fees, errors, and fraud early.
Waiting to report a lost card	Call your bank as soon as you notice. The sooner you report, the less you can lose.

Safe habits

Report a lost or stolen debit card right away. Telling your bank within 2 business days generally limits your loss to $50 or less.
Check your account often. Reconciling regularly helps you spot fraud or identity theft.
Keep your money in an FDIC-insured bank or an NCUA-insured credit union.

Where to get help

If your bank charged a debit card overdraft fee you never agreed to, you can file a complaint with the CFPB.

Sources

Free how-to guides for families, with nothing to earn, pass or send in. They follow U.S. rules and sources; your owner's manual, product labels and state and local rules come first. This guide explains how things work; it isn't personal financial, tax or legal advice.

🏦 Open and Use a Bank Account

Name ____________________ Date __________

You'll need

A photo ID and any other papers the bank or credit union asks for (check its website or call first)
Money for your first deposit
A check register, notebook, or spreadsheet
Your monthly statement (paper or online)

Steps

Know the two main account types. A checking account is for everyday spending, with a debit card, ATM access, and bill paying. A savings account is for setting money aside for goals and emergencies, and it may limit how often you can take money out.
Choose an insured bank or credit union. Check that a bank is FDIC-insured with the FDIC's BankFind tool; credit unions are insured by the NCUA. Standard FDIC coverage is $250,000 per depositor, per insured bank, for each ownership category.
Ask about fees. Before you open the account, ask about monthly fees, minimum balance fees, ATM fees, and what happens if you spend more than you have.
Decide about overdraft coverage. A bank can't charge an overdraft fee on one-time debit card purchases or ATM withdrawals unless you opt in. If you don't opt in, those purchases are usually declined instead. Checks and automatic payments can still bring fees.
Record every transaction. Write down each deposit, debit card purchase, ATM withdrawal, check, automatic payment, and fee. Update your balance each time.
Watch for pending transactions. A debit purchase may take a day or two to post, so the balance in your app can differ from what you've really spent. Go by your own running balance.
Reconcile each month. When your statement comes, check off each item that matches your register. Add any fees or purchases you missed. Then adjust the statement balance for items that haven't cleared yet and compare the two.
Report errors fast. If something is wrong or you don't recognize a charge, tell your bank right away, and no later than 60 days after the statement date. Follow up in writing and keep a copy.
Protect your debit card. If your card is lost or stolen, call your bank right away. Reporting within 2 business days generally limits what you can lose to $50 or less.

Safe habits

Report a lost or stolen debit card right away. Telling your bank within 2 business days generally limits your loss to $50 or less.
Check your account often. Reconciling regularly helps you spot fraud or identity theft.
Keep your money in an FDIC-insured bank or an NCUA-insured credit union.

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