Back to School Banking Tips for College Students

Going to college is one of the most significant life-changing experience in a young person’s life. New experiences, new independence, and new responsibilities are just some of the staples of this new chapter. Whether you are setting up your first bank account or applying for your first credit card, there are some considerations that new college students should keep in mind.

Open a Checking Account

One of the first steps of independence is opening your own bank account. Bring your mom and dad or someone who has experience as a bank customer along with you to help choose and open an account that fits your needs.

Do your research. Just because your college has a marketing arrangement with a bank does not necessarily mean that is the right bank for you. Focus on finding a bank with account perks such as overdraft protection, low ATM fees, free debit cards, free checking, etc. You should also choose a bank that provides convenient and safe digital banking capabilities for convenience.

Take Advantage of Digital Banking

When you choose where to open an account, one of the top factors that should be considered is online accessibility. Take advantage of monitoring your accounts, depositing money, transferring funds between your accounts, and paying your bills without stepping foot in a branch location. Creating mobile alerts on your banking app can also help you monitor your spending and help protect yourself from fraud.

Splitting restaurant bills, paying rent, and even requesting money from your study buddy back for the coffee run is made easy by money transfer platforms like Zelle. Zelle is a fast, safe, and easy way to send money directly between almost any bank account in the U.S, typically within minutes. Click here to learn more about the benefits of Zelle.

Start Establishing Credit

Credit is a big determining factor in the approval of loans, apartment or housing leases, insurance, and even employment. It is never too early to start establishing a good credit history, and this typically starts with getting a credit card in school. College is typically the first opportunity most people get to obtain their own credit card without the help of a parent or cosigner. It is important to establish your own credit as soon as possible.

Many credit card issuers provide fair interest rates and benefits for college students, such as a monetary reward for getting good grades. Before you apply for a credit card that best suits your needs, make sure you are well informed and have responsible money management habits.

Here are some tips to consider when utilizing your credit card in college and beyond:

• Pay your monthly bills on time
• Keep your spending in check
• Do not open too many cards
• Monitor your credit

If you would like to learn more, please read our blog on “The Basics of Personal Credit for Young Adults”.

Watch Your Spending

Implementing good saving habits when you start college can set the tone for the rest of your financial future. Spending money in college is inevitable considering the need for textbooks, lab supplies, and basics like food and rent.

Consider renting or buying used or online textbooks. Do your research and compare prices to textbooks before buying the first option you see. After you are done with that class, try to find a store that buys used textbooks, and use that money towards next semesters’ books!

Create a grocery budget. Write a list before going to the grocery store to keep you on track. Eating out can get expensive, so try to limit the number of times that you eat out per week. If your school offers a meal plan, this could be a great way to save money on food expenses and can be more convenient to eat in between your classes.

Ask for student discounts. Many businesses such as restaurants, shops, movie theaters, etc. in college towns offer discounts just by showing your student ID.

With recent societal changes, a lot of college classes are offered online or hybrid. Taking classes online could help you saving on commuting costs, tuition costs, school supply costs, housing, meals, and even save you time.

Ask for help

This is a learning experience, so if you need help, do not be afraid to ask. Your parents or your local banker can help answer a lot of your questions and help guide you through this transition. If you have any questions on how to be financial responsible while heading back to school, please contact our banking professionals at Wallis Bank!