life skills
checking accounts
CHECKING ACCOUNT
CHECKLIST
You made a killing at babysitting this summer—
that’s great! Have some fun with your friends, buy
some cute stuff for your dorm, but don’t blow ALL
of your hard earned cash. After graduating high
school, if not before, opening a checking account is
an important step. There are so many choices you
will make on how you spend or save your money,
and budgeting can be difficult, but there are extra
features provided by most banks or credit unions
to make that job easier!
Here are some tips for choosing where to put
your money:
CHOOSING AN ACCOUNT
Each state is different, but in Alabama—until you reach the age
of 19—you have to have a cosigner (yes, your parents) to open
an account. But as a benefit, you can choose the option to have
an account where your parents can transfer money directly into
a shared account as often as they decide. This eliminates the
temptation to just swipe your parents card for the smallest
things, but instead gives you access to the balance and allows
you to manage your own funds.
BANK VS. CREDIT UNION
Weigh your options and see if a credit union or a bank would
be your best fit. There are a lot of differences between a credit
union and a bank. Credit unions, for the most part, are locally
based and are only available in certain areas. However, you can
make a deposit through services like mobile deposit apps, online
access, and shared branching (the ability to deposit at any credit
union) which are offered to members free of charge. Credit
unions are not-for-profit; they exist to serve their members while
banks have shareholders who make profit from their customers.
Credit Unions also offer benefits such as lower rates and fees on
things like checking accounts and loans, and higher dividends on
savings.
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| Summer 2020
Banks, depending on the branch, are typically more global and
you can access your account in multiple places. This makes
moving and traveling less stressful, but credit unions provide a
community involvement that large banking corporations do not.
Credit Unions also fit to students’ needs in a way banks do not by
providing scholarships and manageable credit cards for students
to build credit without falling into debt.
Consider all of these viewpoints when choosing your location
to open an account and the type of account you want. Here are
some things you need to do when opening a checking account:
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Know your Balance: Always keep an eye on
how much is in your account and the expenses
you are using. Keep track of activity throughout
your account because card numbers can be stolen.
Avoid Additional Fees: When choosing a bank
or credit union to open your account, choose
wisely and make sure the branch you choose
doesn’t require additional fees for instant transfer,
deposits, or ATM withdrawals.
Explore the Mobile App: With everything
being digital these days, banking is at your finger-
tips. Check out whether your chosen branch has a
banking app and learn how to navigate it.
Decide Where to Keep Extra Money: When
you make money that isn’t budgeted for, you
should decide if you want to add that to savings
or a specific fund. Don’t let extra money just float
around, give it a purpose and keep track of the
amount.
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