One of the most important things parents can do for their children is to teach them how to manage their finances. When kids are taught about saving money, maintaining good credit, investing and other topics, they’re more likely to lead financially secure lives. One of the best ways to get them started is by opening a student checking account.
At Addition Financial, we offer a student checking account to help our younger members who are still in school learn how to manage their money. It comes with some special features that are designed to promote financial literacy and encourage students to learn how to manage their money. Here are eight features to look for in a student checking account.
Very young students — those still in elementary school or middle school — probably don’t need a checking account, although they can benefit from having a savings account. Older students who are in high school or college should have a checking account because it’s a necessary tool as they learn to navigate the world and use their money.
A student checking account represents an important step on the road to financial independence. A checking account makes it possible for working students to sign up for direct deposit with their employers.
With a student bank account, students get a debit card that they can use to get cash at an ATM or to pay for necessary purchases. Whether they’re buying lunch on a break from a part-time job, going out with their friends or paying for shared dorm room expenses, having a checking account means they can pay their way. They can use their checking account to sign up for automatic bill pay and start building good credit.
The right student account makes dealing with student finances easy. The best student checking accounts provide access to online banking and mobile banking plus an array of financial management tools.
One of the biggest concerns that parents and students mention to us is the risk associated with a student checking account. Here’s what you need to know about student checking account security.
The first thing is that most checking accounts are protected by insurance. Credit union accounts are insured by the National Credit Union Association (NCUA) up to $250,000 while bank accounts are insured by the Federal Deposit Insurance Corporation (FDIC) to the same amount. Addition Financial’s student checking accounts are insured by the NCUA.
The second thing to keep in mind is that financial institutions prioritize security. Websites and mobile apps use encryption to protect account holders. Today’s credit cards and debit cards use chip technology to make them secure.
The third and final thing to know about student checking accounts and security is that having a checking account is one of the best ways we know to help students learn about the elements of security that they can control. That means setting a strong password for online banking, keeping their PIN private, taking advantage of two-factor authentication and not sharing their account information with anybody they don’t trust.
The process of opening a student checking account isn’t complicated. Here are the steps to follow: (Keep in mind that requirements may vary depending on which financial institution you choose.)
Follow these easy steps to open your student checking account and take control of your financial future.
Now, let’s review some of the features to look for before you choose a student checking account.
The first thing to look for is an account that doesn’t charge a monthly fee. While many student checking accounts waive the monthly maintenance fee, some do not.
Our Addition Financial Student Checking Account has no monthly maintenance fee, which means that students can keep their money instead of paying fees.
Overdraft protection is there to help students who may still be learning how to balance their checkbook and manage their finances. It’s not common for student checking accounts to come with unlimited overdraft protection, but having some protection may be useful.
For example, our student checking account comes with one free overdraft protection transfer per month. If a student has an overdraft, we’ll automatically transfer funds from their linked savings account to cover the check or purchase and help them avoid an overdraft fee.
Checking accounts typically come with a free debit card. You should look for an account that provides a free ATM card.
Some of the features to look for in a debit card include tap-to-pay contactless technology and an EMV chip. Students may like to have the option to choose their own debit card design, and that’s something we offer at Addition Financial.
While the use of paper checks has dwindled thanks to the accessibility of online bill pay and peer-to-peer payment apps like Venmo and Zelle, it’s still a good idea to have a few checks on hand in case you need them.
Because you won’t write many checks as a student, you shouldn’t need to pay for them. Look for a student checking account that provides a supply of free checks.
Certain checking accounts have a minimum balance requirement, but since most students don’t have high income (and may have significant ongoing expenses), it makes sense to choose a student checking account that doesn’t require a minimum balance.
Our student checking account has no minimum balance requirement, which means that it’s equipped to handle students’ fluctuating income and expenses.
Online banking and mobile banking are so common now that it would be a mistake to choose any student checking account that didn’t offer robust options for both.
Any student who opens a checking account with Addition Financial gets access to our secure digital banking features and our secure mobile app. Both are designed to make it easy to access and manage your money as a student.
One of the most important aspects of having a student checking account is getting access to resources provided by your financial institution, including free tools like calculators and guides, and financial education in the form of blog posts, podcasts and more.
Students who want to learn how to manage their money will do best if they choose a financial institution like Addition Financial. We have an active blog, social media, guides, calculators and other tools and resources to help you learn how to manage your personal finances for a secure future.
Some student checking accounts come with an array of special features. For example, our student checking account includes the following:
These features offer students the opportunity to make the most of their money and secure a bright financial future.
Once you have a student checking account, what’s the best way to manage it? Here are some tips to help you:
By managing your checking account properly, you can set yourself up for financial success.
Having a student checking account makes it easy to collect paychecks, pay bills, and use a secure ATM card for purchases. The 8 features we’ve listed here will help you research accounts and find the best student checking account for your needs.
Are you looking for a student checking account with no monthly fee, free checks and an array of other features? Addition Financial is here to help! Click here to learn about our student checking account and open your own account today.