College life presents endless possibilities - you’re out on your own, and you’re learning how to manage money and build your future. While savings accounts are probably the last thing on your mind as a college student, it is best to start practicing good financial habits to avoid the traps you will face as an adult when you live beyond your means.
Plus, it’s a great idea to start building strong financial habits and look for ways to save and add to your bank account every year. If you start when you’re in college, you could set yourself up for a lifetime of wealth.
Don’t think you can’t have fun though. You can spend money and enjoy your college years while still taking advantage of the benefits of having a savings account tailored specifically for college students. The best savings account for a college student may not be the best option for an adult with steady income.
You need an account suitable for the spending and saving habits of a college student and the convenience of access while you’re away at school. Remember, your goal is to enjoy your life right now and take steps to minimize your debts, especially student loan debt.
Students about people in their teens and early twenties have consistently found that they are not prepared for their financial future, let alone college education. Recent studies have shown that college students do not know how to effectively manage their money, credit cards, and have control over their finances. Students in their teens and early twenties are not prepared for their financial future, let alone college education.
A recent study by education tech company EverFi disturbingly revealed that the average U.S. college student could answer only about a third of basic financial questions.
How to Find The Best Student Savings Account For College
If you’re a student looking for a savings account, there are a few key things you should look for.
Online Banking: If you’re looking for a student savings account, it should have online banking abilities. If you’re going away to school, you’ll want to be able to see and access your money. If you go with a local bank, you might have difficulty accessing your savings if you’re not at home,
No Minimum: If you’re young, you might not have a lot of money to save. Maybe you’re only looking to save your graduation money. As such, you want to find a savings account that has no minimum balance requirement.
No Fees: You definitely don’t want to be paying any monthly fees to have a savings account. There are countless banks that offer fee-free savings accounts, so shop around if you can’t find one.
The Bottom Line
The best savings account for you depends on your priorities. National banks give you the flexibility to bank from anywhere, even if you’re moving all the way across the country to go to school. Online banks give you lots of flexibility, but local credit unions could offer a better relationship.
If you don’t know where to start, find a resource like this tool on how to save more money to get started.
Whatever you decide, make sure that the savings account fits your lifestyle and spending habits. Be sure to research your resources to manage your money.