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Today's dynamic and com plex financial markets demand that consumers be effective money managers and to have a better understanding of their personal finances. Especially at risk are unbanked and underserved consumers who may be unfamiliar with the fundamentals of personal financial management. Many of these consumers may be unaware of the value of saving through bank accounts or may not have the money management skills needed to prepare for unexpected life events or to accumulate assets and build long-term wealth.

Personal Finance Success: Basically you need to follow some common sense rules and you will have success with your personal finances.

1. Personal Finance Rule 1: Don't spend more than you earn
2. Personal Finance Rule 2:Save for a rainy day, whether emergencies or retirement
3. Personal Finance Rule 3:Research and make well informed decisions about your personal finance
4. Personal Finance Rule 4:Comparison shop for all your personal finance needs.

Comparison shop for financial services and personal finance. Just as you would do for any major purchase, look at what is being offered by your bank and a few competitors, then try to find the best deal to meet your needs. For instance, with a mortgage or other loan, you may be able to negotiate the rate and other terms. This can save hundreds or thousands of dollars over several years.

Start by comparing the Annual Percentage Rate (APR) on a loan. The APR is the cost of credit expressed as a yearly rate, including interest and certain fees. "Many people lookings to finance only focus on the dollars they'd pay each month instead of the APR and, because of that, they don't realize how much it will cost and they could pay too much," said Rae-Ann Miller, special advisor on consumer issues in the FDIC's research division. For example, she said, payday loans (unsecured lending that borrowers promise to repay out of their next paycheck or regular income payment) and car-title loans (secured by the borrower's car) "may be quick and easy sources of cash, but they also have an APR as high as 300 to 400 percent."

Also, for a mortgage, consider a fixed-rate mortgage even if adjustable-rate (ARMs) carry a lower initial interest rate or lower monthly payments at the start. "If you are thinking about an ARM, before you commit to one, make certain you know how much the monthly payments could go up and be comfortable with those higher payments," cautioned Janet Kincaid, Chief of the FDIC's Consumer Response Center. "Don't let a low teaser rate lure you in; you may be surprised later."

When you consider opening checking and savings, compare the Annual Percentage Yield (APY) offered by several financial institutions. The APY expresses the annual interest rate you will earn on a deposit, depending on the frequency of compounding. However, keep in mind that fees — such as those for ATM withdrawals, maintenance and checks returned because of insufficient funds — aren't factored into the APY. Fees can make a big difference in how much you actually earn from money you have on deposit.

Personal Finance Tip: Get a free copy of your credit reports. These reports summarize your history of paying loans, and other bills.

One reason you should be monitoring your reports is to correct errors or omissions that can leave bad marks on your credit history. Inaccuracies can needlessly reduce your " score" and, in turn, may cost you hundreds of dollars each year due to higher interest rates on a loan or insurance. Also to monitor and preventidentity theft.

Under federal law, you are entitled to one free credit report every year from each of the nation's three major bureaus. To order your free reports or for more information, go to www.AnnualCreditReport.com or call toll-free 1-877-322-8228.

Personal Finance Rule: Try to save more and spend less. First, if you don't already have a monthly budget, consider preparing one to get a better handle on your income and expenses for necessities, such as housing, utilities, food and transportation. You can also decide what is appropriate for non-essential expenses, such as entertainment, eating out and the latest electronics. "This is how a budget can help you commit to saving a little money every month and splurging a little less," said Kincaid.

She also said that "a budget doesn't have to be complicated or scary," and that while there are budgets you can easily create on a computer, "a notebook and a pencil can be enough to get you started."

Personal Finance Wisdom: Keep banking costs down. With planning, you can sidestep some of the more costly fees and penalties. Examples:

• With credit cards, try to pay the card balance in full each month to avoid interest charges. If you can't pay in full every month, send in as much as possible to keep interest costs to a minimum. "Think twice before accepting an offer from your issuer to skip a payment," said Luke W. Reynolds, Chief of the FDIC's Community Affairs Outreach Section. "It's likely that interest will still be charged, so you'll actually be paying more in interest because you'll carry a higher balance on your card for a longer period of time."

  Avoid late fees. Another is that late payments can damage your credit record. If repeated, they could even trigger rate increases on your credit cards and loans.

• With your checking, avoid fees for insufficient funds and bounced checks. "Record every deposit and withdrawal in your checkbook — especially remember your debit card purchases and ATM withdrawals," said Reynolds. "It is important to know how much money you haveso you won't overdraw your balance."

  Your bank may offer various "overdraft protection" services, but be aware that these come with their own costs. Reynolds added that one of the least expensive options could be to ask your financial institution to cover insufficient funds by automatically transferring money from your savings.

• At the ATM, limit or avoid "surcharges" (access fees) by using your own financial institution's machines or those owned by institutions that don't charge fees to non-customers. If you definitely need cash when you're out of town or otherwise not near an ATM owned by your bank, consider getting cash back when you use a debit card to make a purchase at a supermarket or another merchant.

• Don't be afraid to ask for a break. Bounce a check or send in a late payment for the first time ever? Think the fees for your mortgage application are a bit steep? Depending on the circumstances, your bank might be willing to reduce or waive a fee or penalty, especially if you've been a good customer and don't have a history as a "repeat offender."

Better understand your Personal Finance Rigths: Understand your FDIC insurance coverage so you can be fully protected if your bank fails. If you (or your family) have $100,000 or less in all of your deposits at the same insured institution, you don't need to worry about your insurance coverage. Your deposits are fully protected under federal law because the basic insurance coverage is $100,000 per depositor per insured institution.

You also may qualify for more than $100,000 in coverage at one bank. For example, the money you have in your individually owned accounts (not including your retirement accounts) is insured up to $100,000 separately from your share of any joint accounts at the same bank. Deposits designated to pass to named beneficiaries upon the death of the owner, such as in payable-on-death, also can be insured for more than $100,000 under certain circumstances. And, some retirements (notably Individual Retirement Accounts) up to $250,000.

Stay on top of your personal finances: Remember that investments can lose value. Personal Financevinvestment products include stocks, bonds and mutual funds. Over the long term, personal finance investments might produce higher returns than bank deposits. However, personal finance investment products are not deposits, they are not FDIC-insured and they can lose value. Because of the risks associated with any investment, always deal with a reputable, licensed salesperson and research the product before making a purchase.

Certain annuities are a type of personal finance investment. In general, an annuity is a contract with an insurance company. The consumer makes one or more payments to the insurer, as an investment, and the insurer agrees to make a series of income payments to the consumer as long as he or she lives. Be particularly careful before investing in "variable" annuities, which frequently come with high fees and penalties if you withdraw money early.

Especially troubling have been reports of marketers steering people into annuities that are unsuitable for them.

There also have been reports of marketers making false statements about the FDIC — such as claims that the FDIC doesn't have the financial resources to protect insured deposit accounts — as a way to sell investments or annuities to consumers.

Don't spend more than you earn " Be cautious when borrowing against the "equity" in your home. If you have property valued at $300,000 and you owe $100,000 on your mortgage, your equity is $200,000. Home equity loans and lines of credit are ways that homeowners can borrow money using their home's value as collateral and gradually pay it back.

Home equity products are relatively low-cost ways to finance, but they must be repaid like any other loan. Especially important to remember is that if you cannot pay a home equity loan, you risk losing your home.

Save and put away for healthy personal finance future as well as for the unexpected emergencies. Have adequate insurance, especially for life, health, disability, personal liability, and coverage of property. Review your coverage annually to ensure that it is up to date.

Consult an attorney or another trusted personal finance advisor about having a will and/or establishing a formal "trust" to specify how your property and other assets should be distributed upon your death. Periodically review your life insurance policies and retirement accounts.

Build an emergency savings fund, preferably of about three to six months of living expenses, so you have ready personal finance resources you can tap to pay your mortgage, insurance or costly home repairs or medical bills. The safest place for emergency savings is a federally insured savings account.

Simplify your personal finances. Have your pay and benefit checks deposited directly into your account. Arrange to automatically pay for recurring expenses, such as a mortgage loan, insurance premium or utility bill. Banking and bill paying online or by phone also can be good options.

Protect against personal finance fraud. Here are basic precautions against identity theft, check fraud and other finance scams:

• Beware of personal finance requests to "update" or "confirm" personal information — especially your Social Security number, account numbers, card numbers (including security codes), personal identification numbers (PINs), your date of birth or your mother's maiden name — in response to a personal finance advertisement or an unsolicited call, letter or e-mail. Your bank won't call or e-mail you to confirm account numbers or passwords it already has.

• If you want to find out if a financial company is legitimate, look it up using a reliable source. Don't rely on the contact information that was provided to you online or in an unsolicited telephone call or e-mail.

• Beware that any personal finance offer that "sounds too good to be true" — especially one from a stranger or an unfamiliar company — is probably a fraud. Example: You receive a call or letter announcing you've won a lottery or other prize you don't remember signing up for, and you are told to pay "taxes" or "fees" before you can claim your (nonexistent) prize.

• Beware of transactions in which another party sends you a check for more than you are due and then asks you to wire back the difference. "If the check is fraudulent, you could lose a lot of money," said Michael Benardo, manager of the FDIC's financial crimes section.

• Review your statements and bills as soon as they arrive and report any discrepancy or anything suspicious, such as an unauthorized withdrawal or charge.

• Keep bank and credit card statements, tax returns, credit and debit cards and blank checks safe. Shred sensitive documents before throwing them away. Why? Because dishonest relatives, neighbors, workers around the house and other people could use these items to commit identity theft or other crimes.

• Occasionaly review your credit reports to make certain an identity thief hasn't obtained your information or your name.