Final answer:
The main advantage of using a financial institution as a money management tool is the ability to receive professional investment advice and secure your savings, with the added peace of mind provided by FDIC insurance. The correct option is O getting investment advice.
Step-by-step explanation:
The advantage of using a financial institution as a money management tool is the professional financial advice it can provide, particularly in terms of investment strategy. Financial institutions are designed to serve both borrowers and savers, making it possible to not only keep your money in a secure location but also to help it grow, provided the institution offers financial planning services. Perhaps one of the most telling advantages lies with the Federal Deposit Insurance Corporation (FDIC), which ensures that deposits are safe up to a certain limit, offering peace of mind to savers.
With banks, you get easy access to your money and the added security of the FDIC, which protects savings up to $250,000. This means low risk, which translates into a low rate of return but high liquidity—crucial for effective money management. It is also worth mentioning that, aside from these financial benefits, banks may provide ancillary benefits like offering free checking accounts to students, which could lead to long-term customer loyalty.