High school students require a lot of money to purchase learning materials and cater for their upkeep while in school. They need laptops, books, textbooks, and uniforms. They also need money to fund their school trips to various places as part of their learning. That calls for the need for a checking account. Most of us are used to bank accounts being only for students, but children can open accounts too. Today I will dwell on the most appropriate high school student checking account.
It is very unsafe to give your child cash to keep in their dormitories and use when in need. Within the students’ population, we have those with extended hands, and your child may lose money and end up in big trouble in the middle of the term. With money in their account, no one will access it whatsoever. They only need to keep their PINs and online banking passwords a secret, and all will be well.
If you are a parent and hearing about students’ accounts for the first time, you might be worried about how your child will spend money. Since they are minors, we know that they may squander the funds or misuse them to buy unwanted things. Banks allow you to manage how your child spends money from their accounts. You can limit the amount your child can spend in a day, week, or month. That way, you can prevent them from misusing money.
What is a checking account?
You might be asking yourself a question like, what is a checking account. There are various types of accounts that you can get from banks and credit unions, and thus knowing what each of them is crucial.
A checking account refers to a bank account that allows you to keep the money for your everyday use. The accounts allow you to access money 24/7, so opening one for your kid is necessary. Again, the accounts come with debit cards that allow you to withdraw money at an ATM and buy goods and services online and at physical stores.
What are the requirements to open a high school student checking account?
Opening a student account is not like opening an ordinary checking account. Apart from the guardian being around to stand in for the account opening, some things should be available during the opening. They include the following.
- Social Security Number (SSN) for the guardian or parent
- An identification document for the parent. It can either be an identity card, a passport, or a driver’s license.
- The parent/ guardians physical address.
- Email address of the guardian or parent.
- The student ID or acceptance letter.
- Passport size photos which are taken in the branch
Apart from presenting the above details, it would help if you also came with the child to the branch.
How to open a checking account?
You can open a checking account online or at a physical branch. It is even possible to get a free online checking account with no opening deposit. You need an internet-compatible device such as a smartphone or computer when opening online. The internet should be secure as well.
However, when opening a checking account for your minor, most banks and credit unions require you two to visit the institution. However, you need to choose the most appropriate account depending on your personal preferences. There is not much to do as you only need to fill in an application form and attach the photocopies of the required documents.
They include the identification document for the parent/ guardian, student ID, and a document to prove your physical address which can be your utility bill statement for electricity, water, or even internet. After finishing your application, you wait for verification, ranging from a few minutes to several hours.
What are the things to check when opening a checking account?
It would help if you were not blind when getting a checking account for your student, as you may enter into a problem by opening an expensive account. The following are factors that you should check.
i) Monthly maintenance fees
High school student checking account can have monthly fees. Others do not even have the fees. If you have to open a checking account with fees, it is better to ensure minimal fees. That way, you will save money.
ii) Opening deposit
Most banks require a minimum deposit during the account opening. The minimum deposit is the lowest amount of money you should have when opening an account. You can also find a checking account with no minimum deposit requirement, and thus you decide what to put in your account. For your information, we also have some second chance checking accounts with no opening deposit.
iii) Annual fees
You can find accounts that charge annual fees too. The fees are usually high, and if possible, you should avoid checking accounts with such fees. We know that these are avenues where banks make money to continue their business, but very high fees can be disadvantageous to the consumers.
iv) Transaction fees
Transaction fees refer to the money deducted when you carry out any transaction. It is good to check transaction fees when purchasing goods and services. Foreign transaction fees are generally high. The lower the transaction fees, the better.
v) Rewards
It is always good to get a checking account with rewards. Rewards here refer to miles, cash backs, and points. Since checking accounts come with debit cards, it is easy to get rewards when you use the card to buy goods and services at certain stores. Rewards allow you to save some money when you redeem.
How do student checking accounts work?
Checking accounts for students has no significant difference from ordinary checking accounts. Therefore, the operations are almost the same. As I said earlier, the accounts come with debit cards to allow you to withdraw money from an ATM.
Also, one can use the card to purchase goods and services online or at physical stores. Again you can withdraw money from a checking account at a branch by presenting your identification document.
In most cases, banks and credit unions usually put spending limits on checking accounts to prevent the misuse of money. You can also limit your child’s expenditure using a mobile app to ensure that they do not overspend.
Since the checking accounts require you to have money in your account, you should always top up the funds when depleted. You can organize an automatic transfer of money from your bank account to the student checking account of your child every month. That way, you ensure that your child has money to spend all the time.
Which kind of a checking account is appropriate for high school students?
The most appropriate checking account that you can open for your child is the one that ensures that one incurs a few expenses. A checking account with no ChexSystems will work very well if your name is in the ChexSystem since you will still get an account for your child.
Again, as a parent, you need a checking account with debit cards with rewards. That way, one can save a lot of money. Moreover, an account that will enable you to regulate your child’s expenditure is excellent. That way, they cannot use money irresponsibly.
What can one do with a checking account?
There are various things you can do with a checking account. They include the following.
1) Buy goods and services
With a checking account, you can purchase goods and services online. It would be best to have the card’s expiry date, the card number, and the CVV. You can also buy goods at a physical store by swiping at the register.
Once you open your bank account, the debit card comes later. However, you can open an online bank account with an instant debit card which is usually virtual for online payments as you wait for the tangible one.
2) Withdraw money
A checking account allows you to withdraw money over the counter or at a branch. It is not that you will only need to use money online all the time. You can also withdraw money from an ATM point within a few minutes. Almost every bank has its ATM networks where consumers can withdraw money.
3) Save money
Some checking accounts have the option to save money when you maintain a careful balance in your account. If you get a student checking account for a student with such a feature, then the better as you will be able to train your kid how to save money early in advance.
Kids who learn to save money when they are young grow with a responsible attitude towards money. And by the way, checking accounts that allow you to save money usually pay high interest on the saved amount.
4) Send money
You can transfer funds from your checking account to others. One can instantly send money with a checking account number to an account within the same institution or branch. When sending money to someone from a different institution, you need both the account and routing number of the recipient.
Which are some of the checking accounts for students?
There are various checking accounts that you can open from various financial companies. They include the following.
- Union Bank Teen Access Checking
- USAA- Youth Spending
- Alliant Credit Union- Free Teen Checking
- Logix Federal Credit Union- Teen Checking
- Chase Bank- Chase high school student checking account
- Bank of America- Core Checking
- Wescom Credit Union- GenEdge Account
Bottom line
A high school student checking account allows them to access funds for their everyday financial needs in their school. The accounts come with debit cards, and you can open them from either banks or credit unions.
When opening a checking account for your kid, you should submit your details such as identification documents, SSN, physical address, email, and phone number. You should also present the student ID or acceptance letter of your child.
