Whether you're a student or a parent, managing finances can be complicated at a young age, especially since few learn these skills in school. This leads to a large information gap about something pretty darn important – your money. This article includes some must-have information about money and student bank accounts to help pave the way for a sound financial future.
Realistic Budget
Putting together a budget is about as much fun as it sounds, but it’s also one of the most important things you can do for your finances. Having a solid understanding of money coming in and, more importantly, going out is key to healthy money management. It’s important to be realistic, though. Promising yourself that you’ll never eat out or buy new clothes is probably unrealistic, and that’s ok. If you can make room for splurges in your budget, then you’ll be able to manage the financial impact.
Student Bank Accounts
Having a student-friendly checking account is essential; be sure to take advantage of the programs available to people 25 and younger. At Atlantic Union Bank, we feature PRISM Checking for students aged 13-24. With no monthly maintenance1, overdraft2 or hidden fees it’s hard to go wrong with this student bank account. With a low opening deposit of just $25 and benefits like a free debit card, it’s a no-brainer. What some people forget about though are savings accounts. It may seem obvious, but these accounts are a great way to save for the future, whether that means in five months or five years from now. If you’re a PRISM Checking customer, you also have access to PRISM Savings3, a winning combination.
You can further enhance your savings with the Round Up Program. Every transaction you make with your debit card is rounded up to the nearest dollar and the extra money is deposited into your savings account. You'll be surprised at how quickly the Round Up can add up.
Monthly Expenses and Fees
Do you have recurring monthly expenses month after month that are sapping your reserves? Then, it’s time to reevaluate them. While subscriptions are nice, there are many workarounds that will help you save money. Either split the cost with roommates or, if it’s a magazine subscription, use the library instead. Cell phone bills can’t be avoided, but every few months you should search to make sure you’re on the best plan for you and your situation. Even saving a few dollars a month can add up fast. Finally, track your expenses to see which daily or weekly items can be cut. We all love those fancy coffee drinks but at almost $10 each they add up fast. Cutting a few of those out every month is an easy way to get some of your money back.
Building Credit
Students are on the cusp of financial independence and establishing good credit is critical for post-grad life. Good credit can lead to lower interest rates on private student loans, car loans and mortgages. It's also important to have good credit when looking for apartments and, in many cases, having bad credit could lead to an application denial. Some employers may also consider creditworthiness during the hiring process since a good credit score can be perceived as a sign of responsibility. The Visa® Signature College Real Rewards Credit Card is a great opportunity to consider if you want to start building your credit history.4
Banking Essentials
Financial literacy is one of the most important things about which many never learn. Thankfully, it’s never too late to start, which is one reason why we offer complimentary financial education through our partnership with Banzai. This covers topics like:
- Learning how to budget
- Mastering the basics of savings
- Student bank accounts
- Understanding the ins and outs of taxes
- Managing debt and building credit
To explore more, please visit here.
Young adults, especially high school and college students, are in a unique situation financially, making it important to set a budget and to have the appropriate student bank account. But with a little planning and thought, that doesn’t have to mean sacrificing doing those things you enjoy the most. In the process, you’ll pick up some important financial literacy skillsets that you’ll use for the rest of your life.
1To open a PRISM Checking, at least one owner must be 18 or older. Joint owners must be 13 or older. A maintenance fee of $5.00 will be imposed every statement cycle. The maintenance fee is not charged if an owner on the account is age 13 through 24 or age 62 and older.
2PRISM Checking is not eligible for Overdraft Privilege Services.
3To qualify for a PRISM Savings account, at least one owner of the PRISM Savings account must also own a PRISM Checking account. View the Truth in Savings for PRISM Savings for more information or contact your local branch.
4Subject to credit approval. The creditor and issuer of these cards is Elan Financial Services, pursuant to separate license from Visa® U.S.A. Inc.