Do college students need a checking account?
Perhaps it hasn’t hit you yet. If you are or soon will be a college student, financial responsibility is an essential lesson. The sooner you learn it, the better off you’ll be, not only through college but for the rest of your life. But, for now, let’s focus on college life and how opening a checking account now can make it easier.
Cash is okay for covering small costs, but what about the bigger ones, such as parking passes and living expenses? It’s not safe or feasible to keep that much cash on hand. By opening a checking account that comes with a debit card, you can knock out those expenses quickly and securely. Also, if you plan on having a part-time job, you’ll need to have a checking account to take advantage of direct deposit. You’ll also enjoy the ease of online bill pay to cover utility bills, etc., if applicable.
College is a time when most students have to learn how to get by with less. Worn-out sofas, care packages from home, and cheap eats are the norm. Those who learn how to manage their money well do best. A checking account makes it easier to keep an eye on your limited funds, create a budget, and reconcile your account. These are lessons that you’ll be glad you learned in college because you’re really going to need them once you graduate, get a full-time job, and, for some, start a family.
Which account is best for you?
As previously mentioned, most college students are working with limited funds. If you’re one of them, you want a checking account that offers the features you need but without expensive fees.
Keep in mind, many financial institutions will advertise “free” checking accounts with no fees, but they come with strings attached. Be sure you check out the fine print. Students tend to sign up with a bank or credit union that’s on or close to campus. It may be well worth your effort to expand your search to find a better option. Generally speaking, you can expect better rates, fewer fees, and exceptional customer service from a credit union. By making smart financial decisions now, you’re laying down a solid foundation for success that lasts well beyond college.