Heading Off to College - Have you Considered your Banking Plan?

Heading Off to College - Have you Considered your Banking Plan?
Written by: Mitchel R.

As a senior in high school who is soon making the big jump to college life, there are many things to consider and plan for.  It is no secret that college kids spend a lot of time studying, but they also spend a fair amount of money on things they need or for entertainment.  With money coming in and money going out, it is important that college freshmen are ready to manage their banking needs when they begin their first year.  All seniors should make it a priority the spring or summer before they head to college to firstly select an appropriate bank that will offer their needed services while at college, and secondly should have a fail-safe plan like a credit card at their access should there be some sort of emergency.  Having a solid banking plan in place will ease the transition to college and not create any added chaos.   I recently opened a new account at Chase Bank in Pewaukee as a sort of step one to getting ready to manage my money while attending Michigan Tech in the fall.

There are many financial options and choices out there, and this blog is an attempt to break it down and provide pointers as to what will be needed and what all seniors should do to prepare banking wise before they begin their first class at their chosen college.  I was prompted to begin researching how and what I would need as far as banking at college because I needed to open a Zelle Pay account (mobile pay app) for my employer.  This led me to realize my local and current option of banking at Waukesha State Bank would not provide the services I would need at college.  Here are some primary considerations I learned about in my initial search to find a new bank that would meet my needs:



Going Local
Try to pick a bank that is local to where you will attend college if at all possible.  There are times when you might need to make a deposit or make a withdrawal, and the convenience of making these transactions will be very important.  In terms of banking for Michigan Tech, there aren’t many local options.  A few of the listed banks include Superior National Bank, Flagstar Bank, and Incredible Bank.  Rather than these, I opted for Chase bank.  Clearly, any college student is going to use an ATM at some point so I just have to realize going into it that I need to be aware of what ATM fees will cost me if I want to withdraw $20.00 and take that into consideration.  Since my bank might not be local to where I’m attending school, a clever way to work around the ATM fee is to take advantage of the “cash back” option.  I can buy a bag of chips and request the cashback option then and get the cash I need and not pay an ATM fee.  All college kids should take advantage of this in order to minimize fees.

Check For Easy to Use Online Banking
Since college kids won’t be wanting to make all kinds of walking trips to the bank, it is important to find a bank that has easy to use online banking and a good mobile banking app. The online banking feature should allow you to use your devices to check your balance, deposit checks remotely, make payments, and send money to other people. If online banking isn't easy to use, then that is a definite red flag for banks.  There should be some sort of online payment option like a link to Zelle or Venmo so that money can be easily paid or received.  Also, you want to make sure that there is an easy way for electronic fund transfers, so if it is the case that your parents are generous, they can put money in your account from time to time.

Learn about the Student Account
A student bank account is a checking or savings account that a bank or financial institution offers to college students.  You want to make sure that the student account you sign up is the best option.

Make sure it is free.  You don’t want to pay a monthly charge just to bank with a certain credit union or bank.

Avoid a Minimum Balance Amount.  It is ideal if you don’t have to worry about maintaining a monthly balance.  With my new current account, they don’t care how much money I keep in my account as long as I don’t drop below zero.  You definitely don’t want a bank as a student that is going to penalize you if you drop below $50.00, for example.

Learn about the Overdraft Charges.  Overdraft charges can be avoided if you set up your account to prohibit you from drawing out funds that you don't have if you are at a restaurant or ATM.  You don't want an account that allows you to buy something at Taco Bell when you don't have any money but the bank will cover the charge and then stick you with a $35 overdraft fee.  This would obviously make the meal quite expensive in the end.  Now is also the time to make sure that you don't have any auto-renewal subscriptions (like a gaming or music app) that could try to draw out monthly funds and then if you don't have the money, you will incur an overdraft charge.

Free Checking is Nice.  Free checking or one box of checks for free is a nice option to have.  A lot of college kids aren't going to use checks, but there might be that infrequent time that a check is needed, and then it is nice to have the check to use.

Bonus Cash.  It is especially great if you open your new account and you can make money just for doing so.  For example, I opened my student college checking account with Chase and I get $50.00 when I complete three transactions using my debit card.  This is a signing up bonus, and truly who doesn't want free money?

Hopefully, this blog has informed you as to how you should be planning financially when you originally start out with college so that you can make smart financial decisions and don’t have any issues arise throughout your time as a college student.

Works Cited

Alexa Mason, 2-copper-coins, et al. “The Top 10 Straightforward Money Tips for College Students.” The College Investor, 11 Feb. 2020, thecollegeinvestor.com/10556/the-top-10-money-tips-for-college-students/.

Alicia Adamczyk. “5 Things Every College Student Should Do with Their Money.” CNBC, CNBC, 28 Aug. 2019, www.cnbc.com/2019/08/28/5-things-every-college-student-should-do-with-their-money.html.

Goldberg, Matthew. “6 Financial Moves Students Should Make Before Heading To College.” Bankrate, Bankrate.com, 10 Apr. 2020, www.bankrate.com/banking/financial-moves-to-make-before-college/.