During the transition from high school to college, financial responsibility becomes increasingly important. Tuition, living expenses, and other college expenses must be calculated and budgeted for. Opening a checking account before the big step can make life a little easier.
Even if your parents are covering your tuition, sometimes you’ll need your own money. You can carry small amounts of cash with you, but a checking account is more convenient for your living expenses—from lunch in the common room to a student parking permit. With a checking account and a debit card, you can pay quickly and conveniently almost anywhere.
Opening a checking account can be a good idea if you’re planning on working part-time while studying. You’ll need a payment method for your paychecks or you can set up direct deposit. You can also pay bills directly from your account. For example, if you’re a roommate, you might be covering utilities: A checking account with online bill payment makes this process much easier.
Students learn to do more with less. Learning how to manage a bank account with limited funds will help them manage their money better after graduation, even if they have a full-time job. It’s a good time to learn how to create a budget and balance your account when you have a small balance and few bills.
What to Look for in a Checking Account
Many traditional bank accounts have restrictions and fees. Some checking accounts are more generous and designed for smaller balances. When choosing the ideal account for college, there are certain features to look for.
Online and Mobile Banking
When considering different checking accounts for students, consider your new schedule. You may be busy with school activities, studying, work, and leisure activities. You want to be able to check your balance, make purchases, and pay bills at any time. To get the most out of your checking account, you need a bank with online checking account access and a user-friendly mobile app.
With a mobile banking app, you can also make deposits and even find ATMs. Need cash on short notice before a night out and are already on your way to the party? Simply tap the mobile app on your smartphone and you’ll find the nearest ATM around the corner.
Fees
Many checking accounts—especially student accounts—are advertised as having no fees, but they may have certain conditions attached. Read behind the scenes and understand what’s behind them. Some accounts are fee-free as long as you maintain a minimum balance, use direct deposit, automatically transfer from a savings or checking account, or deposit a certain amount each month. If there’s a limit on the number of monthly withdrawals, inquire about fees for exceeding the limit. Look for banks that offer checking accounts with no monthly fees.
A checking account offers you a gateway to independence and a self-determined life. If managed well, a checking account can help you build a solid financial foundation for the rest of your life. Make sure you find the right checking account for your studies that meets your needs.