A Better Way to Manage Your Everyday Money - Book - Page 21
Chapter 2: The U.S. Financial System
Let’s detour for a moment to get the heavy stuff out of the way. The money that flows through
our lives does so within a complex environment of federal and state laws and institutions that, on
a day-to-day basis, we are not concerned with. However, you may someday be making decisions
about your everyday money that could be affected by elements of the U.S. financial system.
Being aware of the elements in the system might help you make better financial choices.
In this chapter, we will touch on the major players in the U.S. financial system. If you wish to dig
deeper, hop over to the referenced websites.
Banks
A bank is a financial institution authorized to take care of and loan money to individuals and
businesses through checking and savings accounts. They also provide individual retirement
accounts (IRAs), certificates of deposit (CDs), currency exchange, personal loans, and safe
deposit boxes.
It is best to select a bank that is insured by the FDIC, or the Federal Deposit Insurance
Corporation (more below), as it protects bank members up to $250,000 if the bank fails. You can
ensure your bank is partnered with the FDIC by looking for the display of some variation on this
logo at each banking location.
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