Your years in high school are meant to set a solid foundation of learning, preparing you for your what’s next – whether it’s college, trade school, military, or the working world. However, amid the reading, writing, and arithmetic (not to mention the ever-growing breadth of cultural mandates), there is no longer education on one of the most fundamental aspects of “adulting”: banking and personal finance. Sure, students may sit through an economics course, whether in high school or college, but a course covering the basics of personal money management is generally not even an option.
Unfortunately, that leaves students at a disadvantage once they step out into the world of young adulthood. But you don’t have to struggle in this topic! The college years are a time of self-discovery and making your own way. Having a grasp on the whys and hows of personal banking will undergird you with some much-needed confidence as you navigate forward. To help get the financial ball rolling, here are the top 10 reasons you need a checking account and a savings account.
- You can easily learn the basics of budgeting. Your checking account gives you a “bucket” from which to pay your bills and cover expenses. And when you use a direct-deposit feature, your monthly incoming/outgoing equilibrium is always in front of you. A savings account, on the other hand, is your adulting piggy bank – with an ideal of you socking away a percentage of your pay for an emergency fund or savings goal.
- A student checking account typically can be opened with a small deposit. For instance, just $25 is enough to get started. No need to amass piles of funds to enter the world of fiscal responsibility. The sooner you start, the better.
- A savings account is a perfect way to watch your money grow up as you do. Interest typically compounds on a daily basis. Watching but not touching is key to keeping this balance on the rise!
- Some banks offer simple ways to bolster your savings without even thinking about it. For example, Southern Bank’s Savings Made Simple program rounds up every debit card purchase to the nearest dollar, adding those extra cents right into your savings.
- Student checking accounts often come with great perks. Those perks can range from 24/7 roadside service and great savings programs to cell phone protection. (That’s right! You really don’t have to walk around campus with that shattered phone screen anymore.)
- Mobile and online banking means you can securely pay bills, get paid, and manage your accounts from anywhere. (It’s widely accepted that students don’t like to talk with “real people,” so this is an ideal scenario to be fiscally responsible right from your laptop or phone.)
- Linking your checking and savings accounts can be a fee lifesaver when you accidentally spend more than you have in your checking account. That's called an “overdraft.” Depending on your bank, you can avoid these high fees with overdraft protection. There are pros and cons, so learn about your options. But, most importantly, be sure to keep a close eye on your balances, autopayments, and spending!
- You can link your accounts directly to popular payment apps. Linking to apps such as Venmo and PayPal lets you make transactions outside of using your debit card. Generally, there’s no additional cost for using these apps, but look closely at the usage rules to avoid paying these potentially hefty fees.
- Your account could give you access to a mobile wallet. You'll be able to make super-convenient payments in person or online with stores or merchants that are registered with the mobile wallet service provider. Some mobile wallets can also hold coupons, event tickets, and loyalty programs.
- In addition to student checking and savings accounts, many banks offer special programs and services for students to help you gain a better understanding of financial basics. You are, by definition, in the learning mode. Why not jump in with both feet to educate yourself on financial wellness? For example, Southern Bank provides students with robust student banking services. Beyond great account features, SouthernU™ Student Banking includes SouthernU™ Study Hall – an engaging personal educational experience through a series of interactive learning playlists designed specifically for SouthernU™ account holders. You’ll walk through a series of micro-learning moments designed to provide targeted answers to relevant financial life questions.
At Southern Bank, we’ve carefully designed SouthernU™ Student Banking especially for you – the leaders of tomorrow. The future is bright, and we want to be with you every step of the way. SouthernU™ provides financial wellness, education, counsel, and tools to foster good personal financial habits. You’ll find video learning modules, assistance in navigating student debt, and budgeting tools to help prepare you for the road ahead.
*Normal credit approval applies on all checking accounts, loans, lines of credit, and credit cards. The prime rate used to determine your APR is the Southern Bank prime rate on the last business day of the pr
