You are the master of your money management. There is no right or wrong in choosing a financial institution that fits your needs. Some decisions are naturally made for you such as geographic locations, availability of services, eligibility to join and your personal needs. For example, a student attending college might find it easier to join a bank that has a location near or on campus, or a financial institution endorsed by the university. It doesn't have to be this way if the institution does not cater to your needs. A student's focus should be on "FREE" services including free student saving and checking accounts, free ATM withdrawals, and free online bill payment system. A young professional would need to consider additional services offered by financial institutions and might be willing to pay additional fees to reach his/her financial goals. Services such as loans, investment, retirement plans, wealth management and other needed services are offered at varied cost which might require additional research and shopping effort.

How to

It is safe to say that choosing a financial institution to manage one's money is an extension of lifestyle, personality, value and belief systems, and knowing financial literacy principles of saving and investing, and wants versus needs. The challenge is to find an institution that satisfies one's needs and wants. Once found, building relationships with financial institutions is usually for the long haul and in many cases considered a long-term commitment.

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Here is a list of questions to explore prior to searching for a financial institution being a bank or a credit union:

What is your lifestyle?
What type of services do you need and want?
What is your professional occupation?
Which is more important to you, price or convenience?
How long will you be at the current location?
Are you seeking a temporary or long-term service?
Do you prefer in person or online service?

These basic questions help you decide which financial institution better fits your needs. Once you decide on parameters, you would be in a better position to shop, compare among what is available till you settle on a favorite.

Practice

Now that you know the process for making decisions on how to choose the best fit financial institution for your needs, think of paying it forward and discuss your banking choices with a friend or a family member!

Congratulations! You can move on to Chapter 4. What happens if you don't use a bank or a credit union?

To review the full module on Banking, click here.