According to StatisticBrain.com, teens spend more than $258 billion annually, yet many young adults enter college without any practical financial guidance or accountability. It’s now more important than ever for young adults to arm themselves with information on how to manage their money. And that’s why it is also important to educate students about their most important personal financial tool: the checking account.
Checking accounts help students pay everyday bills and expenses. Combined with a debit card, a checking account can be one of the most important tools students use to help manage their money. A checking account is one, safe way for students to pay bills and make those everyday purchases, like eating out, paying for gas or buying clothes.
In other words, a checking account can be that one gateway that serves as both a practical tool and a safe starting ground for young adults.
How do you choose the checking account that’s right for you? Here are some questions to answer before choosing the account and credit union that best fits your needs:
- Does the checking account have a minimum balance? As a student just starting out, stick to an account that has no minimum balance.
- Does the checking account provide free mobile banking and online bill paying?
- Does the checking account provide surcharge-free ATM services? What are the fees for using an ATM outside of the credit union?
- Does the account offer any other special rewards or features that might be of interest to a student?
Just like any other major life decision, when choosing a checking account, it’s important to be informed. And, it’s just as important to be comfortable with the credit union you choose. Ask questions if you do not understand something.
Contact Catholic Federal to learn the ins and outs of the credit union’s checking account to help your teen take those first steps to toward financial independence. For members age 16 and 17 applying for a checking account, the credit union requires a qualified co-applicant (age 18 and above plus credit check). For additional information contact (800) 798-2328.
Source: CU Content