Turning eighteen may be an important milestone in a person’s life, but knowing how to manage finances is not something that comes naturally to people of that age group. You may spend much time and efforts studying Calculus and Shakespeare, but the knowledge of banking eludes you. Seriously, it is high time you got it done immediately. Banking is much simpler than passing the last statistics exam, trust me! 😅
The whole idea of going to the bank for the first time may seem frightening. Do not think about the glamour of tellers and nice interiors. They will be happy to see you because banks are interested in deposits. Think about it as the job interview in which you are interviewing them.
First, make sure that you have the necessary documentation. Bring your governmental ID card, such as a driver’s license or passport. Also, bring your proof of residence; it can be any of your bills or a lease agreement. In some cases, you might need to bring your Social Security card.
Second, decide whether you will use a credit union or a commercial bank. The latter is convenient, and their branches can be found almost everywhere. For example, Chase or Bank of America have ATMs practically everywhere. On the other hand, credit unions usually provide higher interest rates and lower maintenance fees. Think about it – you need to choose between the convenience and cost of maintenance.
Third, study the contract carefully. Most of the accounts providing free checking have hidden fees, and they will charge you five dollars a month if you do not keep the balance high enough. Steer clear of such products like you would of the bad food from the campus dining room. 📉
You might consider using the online banks such as Ally or SoFi. Such digital banks usually do not have monthly fees and provide high yield savings rates. The problem with them is depositing of cash since there is no personal teller in that case. If you do not deal with cash, these banks will fit you perfectly.
Opening an account, you will have to make an initial deposit of some money. Sometimes, it will be as little as twenty-five dollars to start an account. Use a debit card or a check to make the deposit. Do not use cash for the first deposit if you do not want to get into trouble with the teller. 🤣
Then, set up the online banking as soon as you can. Install the application and create a good and easy to remember password. Also, enable two-factor authentication for additional security since cybercriminals always try to target inexperienced people. It takes two minutes, but saves you from the future troubles.
In conclusion, start using your new account right away. Make a small recurring payment, such as Netflix, to keep the account active. Monitor your account regularly and keep an eye on your balance to avoid the overdraft charges. Welcome to the adulthood where money matters! 🎉