Top 5 Reasons to Open an Account for Your Student
You’re never too young to get serious about saving and managing money. As a teen or young adult, it’s tempting to spend your allowance on the latest gadgets or most in style clothes, because you don’t have as much to pay for. However, because students don’t have as many financial obligations, isn’t now as good a time as any to open a student account to prepare them for what lies ahead?
Here are five of the many reasons why you should start the process today for your student:
- Teaching Money-Managing Wisdom
Getting a student bank account is the first lesson in money management. With a student account, they can keep track of the money they put in and never lose their money in the wash load or in the sofa cushions. It allows a student to gain a sense of how to budget their earnings. This sets the stage for how a student can manage money as an adult.
- Debit Card Responsibility
In many ways, opening a student bank account can serve as a stepping stone to a credit card. If a student has a debit card, they learn the importance of making sure you only spend what you have. Managing a debit card is an effective way to stay ahead of the curve and learn responsibility.
- Peer-to-Peer Advantage
A student account gives you access to conveniently send money to your student. There are obvious security reasons with leaving a student’s allowance under their pillow or on the kitchen counter: Someone could mistake the money for theirs, it could go missing or be stolen – and, unfortunately, you don’t get that money back. With cash in the bank, your deposits are always safe.
- Carrying Cash vs. Using Card
A student may need cash for events, such as football games or the homecoming dance. But there are other times, such as going to the movies or dinner with friends, that cash makes it more difficult for a student to keep up with their funds. A student account allows the student to decide when it’s necessary to use a card and when it’s a good time to use cash (by visiting an ATM). They will be prepared for any transaction and gain valuable responsibility in the process.
- A Good Foundation Before College
All the above reasons will come in handy as your student heads off to college. It’s a time when you learn to do more with less. Students who learn to manage a bank account when they have limited funds are more likely to manage their money well when they have a full-time job after graduation. It’s the ideal time to learn about creating a budget (especially when it comes to buying supplies and books) and reconciling your account while you have a small balance and a few bills.
A student account is a great introduction to independence and life on your own. If managed well, it can help build a strong foundation for the rest of your student’s life. Get one today!