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Important Update: Changes in FDIC Deposit Insurance Coverage

The FDIC deposit insurance rules have undergone a series of changes starting in the fall of 2008. As a result, certain previously published information related to FDIC insurance coverage may not reflect the current rules. For details about the changes, visit Changes in FDIC Deposit Insurance Coverage. For more information about FDIC insurance, go to www.fdic.gov/deposit/deposits/index.html or call toll-free 1-877-ASK-FDIC (1-877-275-3342). For the hearing-impaired, the number is 1-800-925-4618.

Spring 2005 - A Special Guide for Young Adults

To Buy or Not to Buy...
That is a question many young adults face when it comes to a home or a car

Renting vs. Buying a Home: Once you start earning a good, steady income you'll most likely face this decision: Should I buy my own home instead of paying rent to someone else?

Most people want to own a home. Homeownership often is referred to as "the American dream." Why is it so special? Among the reasons: Real estate often is an excellent investment, perhaps the number one source of wealth building for families. Owning your own home also can be a great source of pride and stability. But homeownership may not be for everyone. It's a big financial commitment — starting with the initial shock of your purchase (including a "down payment" and fees paid to a real estate agent, the lender and others) followed by years of monthly mortgage payments, real estate taxes, property insurance and maintenance costs (such as lawn care and home improvements).

How can you learn more about renting vs. buying a home, as well as your rights and your responsibilities as a renter or a homeowner? A good place to start is www.mymoney.gov, the new Web site for financial information from the federal government. Or, go to the Web site of the U.S. Department of Housing and Urban Development (HUD) at www.hud.gov, which has answers to common questions from renters and first-time homebuyers, a calculator you can use online to compare buying vs. renting a home, and links to homebuyer assistance programs across the country.

Buying vs. Leasing a Car: For many young people, their first big financial commitment will involve getting their own wheels.

One option is to buy, which may involve borrowing money to pay for it. Before you visit a dealership or bid for a car over the Internet, visit our Web site for tips from FDIC Consumer News that can help you save time and money, perhaps hundreds of dollars, when it comes to shopping for an auto loan. See Kicking the Tires on an Auto Loan: Don't Kick Yourself for Paying Too Much online at www.fdic.gov/consumers/consumer/news/cnsum04/autoloan.html.

Another option is to lease a car, which is similar to renting it for a few years. The Federal Reserve Board has published a guide to the differences between buying and leasing a car, including cost considerations and consumer rights. Read Keys to Vehicle Leasing online at www.federalreserve.gov/pubs/leasing.


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Last Updated 5/17/2005