Are you a student who wants to learn how to manage your bank accounts? Find out which 6 banking tips for students can help you spend less and save more today!
6 Banking Tips Students Need to Know to Save Money
Do you want to learn how to save more money as a student? Do you want to learn how to manage your bank accounts so that money flows in and not out? Read on to learn more about the banking tips for students you need to know to save more money!
Saving money as a student can seem like an impossible task. Earning meagre amounts at part-time jobs in the afternoons or on weekends, and then spending them almost immediately on various daily expenses…
But, of course, it all boils down to your mindset. One of my favourite sayings is “where there’s a will, there’s a way”. I’ve always believed that if you want to achieve something badly enough, there’s always going to be a way to make that happen.
When I was still in high school, banking seemed like such a foreign concept. However, now, as a university student, it plays a huge part in determining my ability to save money for the future.
Developing good banking habits early on can be extremely beneficial in helping you develop and maintain good spending habits. If these few years have taught me anything, it’s that my banking activity ties directly to my spending habits.
So, if you’re a student who wants to learn how to save more money, read on to find out which banking tips for students help me develop good habits for spending and saving money.
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So, what are the 6 banking tips for students that can save you more money today?
1. Open a student bank account if you’re eligible
If you’re a student, then you’re most likely eligible to open a student account at your local bank. The main benefit of opening a student account over a regular account is, of course, the elimination of monthly account fees, but there are also other benefits that come along for the ride.
As a student, you’re probably not earning a lot of money per month, so it doesn’t make sense to waste a bunch of it on monthly account fees.
Most banks allow students as young as 12 years old to open student accounts, so you can learn to start saving money at an early age.
2. Get a bank account early
Most students have a bank account by the time they are 16 since that’s the age that many students have had experience with or are starting to experience part-time work.
If you have an everyday account, you should also open a high-interest savings account if you don’t have one already. If possible, it would be preferable for you to keep all of your bank accounts with the same bank.
However, there’s also the chance that the bank you’re currently with might have lower interest rates than say perhaps, the one across the street. So, while you’re still a student and don’t have to pay any account fees, it might be a good decision to open up a new bank account at another bank to take advantage of those higher interest rates.
I have friends who only noticed that their savings account interest rate was ridiculously low compared to those offered by competitors after years of being with the same bank. So, if you notice that you could be getting higher interest rates at a new bank, don’t be afraid to open up a new savings account elsewhere.
3. Open at least one savings account in addition to your everyday spending account
To make the most out of any money you have sitting at the bank, open a few savings accounts, or even just one, with a high-interest rate so that you can earn a percentage of your money as interest and grow your savings account, albeit very small and slow growth.
I’m a big believer in that you should always make sure that the numbers in your bank account go up, even if you’re not earning any money and there’s no money flow into your bank account. So as a busy student, the easiest way to achieve growing numbers is to let your money grow on its own with high-interest savings accounts.
Keep in mind that many banks have introductory offers with extremely high-interest rates for the first few months of opening a new account, so make sure to take advantage of that by depositing as much money as you possibly can during those first few months.
Keeping your money in savings accounts rather than your spending account can also be a huge motivator in helping you save more money and spend less.
From personal experience, I know that it can be very easy to spend all of the money in my spending account, but it requires a lot more thought on my part to transfer money from my savings account to my spending account if I want to buy something that’s not a necessity.
4. Keep your savings account as a one-way street
At first glance, this might make absolutely no sense to you but hear me out. When I say one-way street, I literally mean only let your money flow in one direction. So, money flows in but none flows out. This is, in hindsight, the very definition of building up your savings account.
I know it might seem like a test for your self-control, but it is a test with very good rewards.
Another reason why you should never take money out of your savings account is that savings accounts usually have bonus interest rates that are much higher than what your regular spending account would have. And most often than not, the rule is that you only get bonus interest for the month if you don’t take any money out of the account. This could be interpreted as an incentive for you to keep your money in your savings account to prevent you from excessive spending.
There are also some accounts that require you to deposit a certain amount every month to get the bonus interest. This is why I always recommend that you deposit at least 50% of any money left over after accounting for necessities into your savings account.
5. Compare the perks of accounts offered by different banks
Before you make the leap and open up a bank account at the one that maybe all of your friends are at, do your research and compare the perks offered by different banks. To encourage more customers, every bank has its own incentive to offer potential customers different rewards and such that are connected to their accounts. Some banks might have partnerships with various brands to offer discounts and others might have points systems. Every bank has their unique selling point and it all just depends on what you’re looking for in a bank account.
Of course, there’s no rule that says you have to open all of your accounts at the same bank, but for easy management, I do recommend keeping all of your accounts together while you’re still a student.
6. Check your bank statements and account activity regularly
It can feel like a huge hassle to constantly check up on your bank account, especially if you have a card with PayPass that you’re just tapping here, there and everywhere. But the downside to paying with your card over cash is that sometimes amounts might get a little bit muddled up and you might find yourself with less money in your account than you expected.
This is why I usually like to keep my debit card for emergencies or larger purchases as it’s easier to keep track of my activity. I have migrated over to using cash for everyday spending so that I am actually aware of the amounts that I’m spending and where that money is actually going. You can read more about how I save money as a student at 8 Habits that Save Me the Most Money as a Student.
Those are a few banking tips for students that I’ve found to be extremely effective in helping me save money!
If you have any of your own banking tips that have helped you save money over the years, share them down below!
If you want to learn more about saving money, here are some articles to get you started:
- 30 Little Ways You Can Save Money Now
- How to Cut Down on Your Expenses from Home
- How to Save Money Planning Your Travels
- Paperbacks vs eBooks | Which One is Worth Your Money?
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