Question

Your friend says it's a bad idea to have a checking account because of all the fees. Do you think he is right or wrong? Make an argument for what you think.

a) Right, because checking accounts often come with high and unnecessary fees.
b) Wrong, because the benefits of having a checking account, such as convenience and financial management, outweigh the fees.
c) Right, because checking accounts are only suitable for wealthy individuals who can afford the fees.
d) Wrong, because checking accounts are completely fee-free and do not impose any financial burden.

Answer 1

Checking accounts are beneficial because they offer considerable convenience, ease of financial transactions, and security for your funds, outweighing any potential fees, especially when managed wisely to avoid such charges.

Step-by-step explanation:

It is wrong to assume that all checking accounts have high and unnecessary fees. While some checking accounts may come with fees, there are often options that have no fees, especially if certain conditions are met, such as maintaining a minimum balance or setting up a direct deposit. Furthermore, the advantages of checking accounts are significant—these accounts provide convenience, easy access to your funds through writing checks or using a debit card, financial management, and security for your money. Additionally, the Federal Deposit Insurance Corporation (FDIC) guarantees the safety of deposits up to $250,000, which adds another layer of security for account holders.

Moreover, the banking landscape has evolved over the years; now many banks offer checking accounts that pay an interest rate akin to savings accounts if you maintain a minimum required balance. And conversely, some savings accounts allow you to write a few checks per month, providing even more flexibility. It's imperative to shop around for the account that best suits your financial needs and habits to avoid unnecessary fees.