Q
When is a good time to start direct deposit?
—Brittany,
Rutgers University


A: As soon as you get your first job, you should start direct deposit. Go to your local bank that offers Free checking and open a checking account and a savings account, if you don’t have one already. Then, take 1) a copy of a blank check and 2) a blank savings deposit slip to your employer, and tell them you would like to have your payroll checks directly deposited into these accounts. Your employer will give you a simple form to complete. List on that form that you want 10% to go to the savings account. Then, budget to live off the rest of your check. Once you have built up your savings account to $500, I would suggest moving your money to a savings account that will give you a higher interest rate than the local bank. You can get 1.5% at INGdirect.com, and your bank may be able to offer you a money market account with a higher interest rate once you have at least $500 or $1000 to start the account. Remember, this savings is for your emergency fund. This is not to be touched. This money is your flossing money. Not to floss with a new car or diamond ring, but to floss when your car breaks down and you can have it fixed in a day because you have a savings. Or perhaps you can floss by covering your off campus rent for a month while you find a new job, whereas your friends are scared to open the door because they