In today’s world, a banking account is a must. There are two basic accounts out there that you would need: Savings & Checking. Let’s define them…
A savings account is exactly that…a place where you can save money and set money aside for whenever you may need it. The money in your savings account is money you won’t need on a regular basis and will probably sit there most of the time.
On the other hand, a checking account is where you’ll have money that you need to access on a regular basis. Typically, you’ll have a debit card or a checkbook you can use to take money from this account. This is the type of account you will use for your daily expenses.
Setting up either or both of these accounts isn’t difficult. Find a local bank or credit union (probably the same place your parents bank) and go inside and ask to talk with an account manager. They can go over the different options and requirements for your accounts. Here are a couple of criteria you should look for…
- No minimum balance requirement – Some accounts require you always maintain a certain balance in your account or they will charge you extra. There are plenty of options out there that don’t have this requirement, so find one of them.
- No monthly fees – This isn’t as common anymore, but some banks actually charge you a fee to open and keep an account with them. This is stupid. Avoid fees.
- Free debit card and checks – A lot of banks will offer you a free debit card and checks to get you started. Again, you shouldn’t have to pay for a debit card or checks. Now, if you want checks with pictures of your dog Fluffy stamped on them, that’ll cost you. And you’re weird.
Opening a bank account isn’t difficult, but it’s one of those things you need to have as you grow up and get ready to live on your own. Your piggy bank is broke (in more ways than one), so move up the food chart and get yourself a bank account.
YOUR 2 CENTS: Do you have a banking account? What kind do you have and what was your experience like opening up that account?
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Great advice on what to look for in a bank account! The first account I ever had was a savings account. When I was 16, I got a weird debit card account so that I would have a card to take overseas for a school trip to Italy. Big mistake – the card was full of fees! Charged me like $2.50 a month just to have it! And I was too lazy to cancel it until I was in my second year of college – yikes!
After that I got a student checking account, which was nice – no fees or minimums on that one. Online savings accounts are really great, like the ones from ING Direct and Emigrant Direct. No fees or minimums, and they offer great savings rates. You will need to have a checking account at a brick-and-mortar type bank first, though, before you can get one.
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I opened up a Checking and Savings account with a local credit union when I turned 15. All I had to do was go through a week long class on personal finance, which was very easy. I get a Debit Card with my account, and a free box of checks. Both are very useful when spending my hard earned money, while also putting some away for college.
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