Once you hit 18, unless your parents are kind enough to
help you out, you're on your own. This new independence
can be a blast; however, to continue to fully enjoy this
time there are a few things that will help you afford your
new freedom. One of the first is to have your bank
accounts in place.
How you manage your bank accounts today will determine
whether you're able to live the lifestyle you desire
tomorrow. That's why it's important to open a bank account
and establish a relationship with a bank as soon as
possible. Opening a bank account will help you to develop
a proven track record which can give you advantages when
you need a student loan, a car loan, student credit card or
a mortgage.
Why open a bank account?
1. Safety - Money that is held in a FDIC insured bank is
safer than holding onto cash. Your accounts are insured by
the government up to $100,000 so there is not a risk of
losing money.
2. Interest - Everyday you have money sitting in a checking
or savings account, the bank is paying you interest.
Interest rates vary depending on the bank so when choosing
a bank this is an important feature to compare.
3. Organizing your budget - A checking account is the hub
of your finances. Money you deposit in there can be
directed to pay bill, savings and investments.
4. Easier - With online banking you can set up your
accounts to automatically pay your bills each month. Once
you set this up once you're done. You just need to make
sure you have enough money in your account when your bills
go out.
5. Tracking - Paying someone in cash can result in
problems. That money can be pocketed instead of applied to
your bill and there's no way for you to prove you paid
them. Paying by check, credit card or debit card will
leave a paper trail that will prove you paid the bill.
6. Direct deposit - Rather than giving you physical checks
you employer can just deposit your earnings directly into
your bank account. This saves you a trip to the bank and
often you're able to access the money immediately.
7. Future services -Building a long-term relationship with
a bank will benefit you more over time. As your banking
needs grow you can get better terms on student loans,
student credit cards, auto loans and other services the
longer you have a relationship with a bank.
How to Open a Bank Account.
When you open a bank account you should be looking to build
a long partnership with the financial institution.
Building a long-term relationship with a bank means you
will one day receive preferred treatment. The next time you
need a student credit card or other type of loan, you will
typically qualify easier and pay lower fees because of the
relationship you have built. Think of it this way: the
sooner you open your bank account, the sooner you will
enjoy preferred treatment.
Find a bank that offers services you need now and may need
in the future. Immediately, your needs just may be for a
checking account. However in the future you may need a
savings account, student loan, student credit card and may
want to invest money in the stock market. It's much easier
to locate one financial institution that can handle all
your future needs.
In order to decide which bank is right for you and your
money, you need to consider your expectations and purpose
for opening a bank account: is it for business, pleasure,
savings, wage-depositing, eventual loans, etc.?
Check out a few banks and compare bank fees, service
charges, and interest rates. Also make sure their ATM's
are convenient. If not you could rack up additional fees
for using other bank's ATM machines.
When shopping for a bank account to open, choose one that
offers a quality online bill pay service. Online banking
simplifies your life and makes all your banking
transactions available at the click of a button. This
allows you to check balances from the comfort of your own
home and electronically pay monthly bills without ever
writing a check. It also, it gives others the impression
your bills are handled by a professional accountant.
Opening a bank account is the first step in building your
financial foundation. The sooner you start developing a
relationship with a bank or financial institution the more
benefits you will receive now and in the future.
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To learn more practical banking tips visit
http://www.FreeBy30.com for free video instruction. Vince
Shorb, author of 'Financially Free by 30' and leading
financial literacy advocate provides step-by-step
instruction on how to automate your finances and reveals
the secrets to wealth creation.
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