Keeping track of one’s expenditures and income is often a challenge for many students. As such, students often find themselves trapped in the vicious cycle of debt with frivolous purchases when they come from by money and struggle with basic commodities after blowing their cash away.
Banking is thus a convenient way to keep your spending in check, managing any needs you may encounter in the course of your study. For instance, savings facilitated, the costs encountered while writing my papers, ensuring an easy academic journey.
Additionally, healthy financial habits developed in college apply to your life, ensuring financial discipline in all your encounters. If you are looking to start banking as a student, here are some steps to put into consideration.
1. Find the right bank
When starting your banking efforts as a student, it is best that you select a bank with fewer costs and perks that are most favourable to you. Some banks offer student accounts that attract lesser charges in transactions and also benefits including free monthly maintenance.
Ideally, your selected bank should have branches and ATMs within the campus or near your college. Also, consider checking the special packages for students. You could also settle for an option without overdraft facilities as this could inspire you to exceed your means, plunging you into financial turmoil.
2. Start a savings account
It is a wise idea to put money aside for a rainy day in college. However, do not succumb to the pressure of saving big rather set aside a small portion of your cash for your savings account.
For this, gauge various banking options at your disposal and settle for the account that offers the highest interest rates for your savings.
3. Start budgeting
A common story for college students is one where a student has tons of money at their disposal one day and the next, applying for loans to make ends meet. This vicious cycle is often a result of mismanaged spending on frivolous items and indulgence in behaviors that impact a huge financial burden on students.
From this, students should learn to budget for their income and limit their spending to a comfortable range. Also, refrain from misusing your credit card overdraft on unnecessary items as this could take a substantial amount to fix.
Some banks may offer tools to manage your spending, helping you diagnose the habits that exert much pressure on your budget, and helping you bring your finances back on the right track.
4. Open a checking account
Unlike a savings account, a checking account offers easy access to your cash and does not incur monthly account fees. Some banks may even offer reward points and unlimited debit transactions, making for affordable banking.
You could also get sign-up bonuses and interest on your deposits, reducing the amount of cash spent on banking services.
5. Consider an online bank
Often, the idea of banking conjures images of a brick-and-mortar facility with cashiers and ATMs. However, your banking options are not limited to brick-and-mortar options as you may opt to enroll in an online bank.
Unlike their traditional counterparts, online banks offer better interest rates on their savings. Also, online banks offer a wide range of features that come in handy to track your spending and fine-tune your financial habits.
6. Consider a credit card
Poor approaches toward credit are the reason why many experts advise against credit cards. You may, however, consider a credit card to build your credit history. For credit, companies may require proof of independent income.
Also, consider a choice that offers cash-back rewards and also options that do not charge exaggerated premiums for foreign transactions.
We hope that these tips guide you to starting your banking as a student. Also, ensure to consult peers and experts to identify means to create income and manage your student life without plunging into financial turmoil.