Sign up for student banking. If you have a part time job at a restaurant or retail chain, chances are you have a savings account already in your name. You don’t!? Number one: get a job. Number two: get a savings account. Make sure that it is under your bank’s “student banking” program. In a student banking program, you avoid a lot of fees that can creep up on you (for instance, a minimum balance that requires you to keep a specific amount in the bank). Savings accounts are great because they require you to go to an ATM or your actual bank to take cash out. If you’re paying a bill, like tuition or car insurance, you will still have checks that you can physically write out. There’s usually a lower minimum balance with savings accounts; typically around $100 that you should keep in the bank at all times. It’s important to shop around and make sure that the bank you choose, meets your needs.
Are you ready for a checking account? Think you’re responsible enough to handle a checking account and debit card to go along with it? Just make sure that you’ve signed up for the student checking at your bank. There’s a ton of perks to go along with student checking accounts that include either “no minimum balance” or a low minimum balance. Having a debit/check card also means that you don’t have to carry cash around when making your daily or weekly purchases. Life is easier, more sophisticated, but also comes with more responsibility when you have a debit card.
Sign up for online banking. It’s very important that you keep track of your money when you have a debit/check card because a withdrawal is made directly from your account. It’s not like a credit card where you are billed later. So, with both checking and savings you should sign up for your local bank’s online banking. There you can check your balance (the total amount of money you have in the bank), track your purchases, sign up for automatic bill pay, make transfers from your savings to checking accounts (should you need more money for a payment), and have your paycheck directly deposited into an account. CAUTION: Never give out your pin number or login for any account you may have, no matter how much you trust your friend or roommate.
Pay your bills. This is just what creating a bank account is for. Saving money for what you will need or want plus being able to manage what you have right now. Online banking and bill pay make paying up and saving up much easier. Not being able to make payments on time can just drag you further into debt. So, keep on top of account balances while you check your email and Facebook messages.
Does that come with fries? Just like fast food, we want to know what we’re going to get with the bank that we choose. Try to compare banks online at first by reading up on what they offer and what the benefits are of each. If location is important to you, make sure there is a branch close to where you live or go to school. Are there any interest fees? Minimum balances? ATM charges? Rewards for using your check card? There are many banks that are online only and these may suit you more, especially if you’re trying to be more conservative with your money. There are so many options for you to consider, so make sure that you consider them all. Talk to parental figures about their experiences and be sure to go to a bank that you’re interested in to talk to a representative.
Buona Fortuna! (Good Luck in Italian)
Nancy Perone
