The income you generate as a student is your first step to a healthy financial future.
In planning your finances, the first step is opening a bank account. A bank account helps access many financial benefits for students.
Not only does it make you somewhat accountable financially, but it also gives you a sense of responsibility. There are so many reasons why as a student you need a bank account. Below are a few of the reasons.
Access to Scholarship Funding
Many institutions and organizations offering scholarship funding to students have requirements and one of these is that you must have a bank account. It serves as proof of age, eligibility, and responsibility. These organizations can wire financial support in the form of allowances and funds for bill payments to your account. Most times these payments are forms of investments used to pay for your expenses over some time.
Student banking benefits
Everyone should have a bank account, and students are no different. Before you open a student bank account, it is necessary to get some important information on the benefits these banking institutions have to offer. Some have more benefits than others as they place preference on student accounts. You also need to know about important features in the banking system like credit cards, loans, and investments. Most young lads have run into debt spending over their limits and not been able to pay it back.
This affects their credit score grossly and presents difficulties even after schooling days. Some banks offer no monthly banking fees, cash giveaways for new student accounts to the tune of $200, unlimited point of sale transactions, higher interest rates on savings, etc. These benefits are mostly offered only to students to encourage them to save and plan their financial future.
Savings and Accountability
Bank accounts help you keep track of your expenditure and your income. If you intend to plan your income, expenditure, and savings, banks provide you with the necessary updates and professional advice on how to get this done. With a bank account, every decision to spend is a conscious one. This is because the bank messages you regularly about the state of finances. When you have easy access to your cash, it is quickly spent. A bank account helps reduce your access to direct cash so you can build a savings nature. A good savings culture is necessary for a healthy financial future.
Payment of bills
Payments with cash can be cumbersome, so banks provide you with easier and readily acceptable ways of making payments. As a student you would need to make certain payments and cash is usually not allowed. Thus, the banks provide you with cards, these valid bank automatic teller machine cards enable you to make payments.
These cards also help to reduce your issues with missing cash because you no longer have to carry cash around. You can also make payments for transportation and shopping items both online and in-person without stress.
Banks provide You with Security
Banks provide security for your funds in case of theft or fraud. They advise you against unprofitable investments and fraudulent schemes. They also protect your account by verifying with you when demands on your account pop up suspiciously. With a bank account, you are not afraid of getting robbed because all you have on you is your debit or credit card. This card requires access to give whoever holds the card access to your account.
When they are unable to give the access code, the card becomes useless. However, your bank account is also linked to your phone number and email. So, any transactions on your account are directly sent to your phone number or email so you can track fraudulent transactions without your permission.
These are a few of the many reasons why you as a student need a student bank account. You can have a bright future if you decide to make the right financial decisions now.