Since you budget your money month to month, manage where it is going and coming from, and invest a little bit here and there – then you understand all the components of finance, right?
Being “financially literate” requires you to have the knowledge on a wide variety of financial options – so that your budgeting, managing, and investing can be that much easier.
Today we are going to talk about two methods of handling money that often cause confusion in the financial world: wire transfers and money orders.
What Is a Wire Transfer?
Through high end technology, wire transfers are now known as the electronic movement of funds between banks or credit unions.
However, having a bank account is not always necessary for wire transfers as you can also wire money through a non-bank transfer service.
When Should I use a Wire Transfer?
Domestic wire transfers are great to use when needing to transfer large sums of money over a large geographical distance.
If your child needs rent money for six months and lives across the country, this may be the right choice of transfer for you.
However, wire transfers are particularly useful when dealing with international money transfers. They are an effective way of transferring large sums of money internationally and you can even transfer the money in a foreign currency.
What Is a Money Order?
A money order is a payment order for a specified amount of money that has already been cleared by the bank. This is a guaranteed form of payment for both the amount and the person receiving the money order.
When Should I use a Money Order?
If you do not feel comfortable using cash or a personal check for payment, that is a good reason to use a money order. If you are sending cash in the mail, you risk it being stolen. If you are paying someone using a check, the money may not clear.
Money orders are beneficial as they protect both parties, the person paying the money and the recipient of the money. Using a money order to pay a private party, such as paying your landlord rent, is a great way to ensure that your money is safe.
Another perk is that after completing the money order, you will get a receipt that you can keep for your records. This receipt can also be used to track your money order in case it is lost or stolen. You can even cancel a money order if necessary.
Stay Informed on Your Financial Options
Through evolving technology in today’s world, there are many methods of transferring money.
Using a wire transfer or a money order, which comes and goes directly through the bank, is the most secure way to exchange money.
To learn more about wire transfers, money orders, or other financial tips, we are here to assist you! Please stop by your nearest South Suburban Currency Exchanges location.