Money management 101: How to ace student checking accounts

What is a student checking account, and why you should get one

For many students, heading to college is the first opportunity for them to take their financial fitness into their own hands. Unfortunately, many students feel ill-prepared to handle the responsibility that comes with managing money. For example, one survey[1] found that 59 percent of students consider dropping out due to financial stress, while 78% reported negative impacts on their mental health because of the stress that comes with handling their finances.

Fortunately, figuring out how to handle your money doesn’t have to be quite that stressful. Finding the right financial products can make a big difference when it comes to managing financial stress, being responsible with where your money goes, and keeping track of your incoming and outgoing money. The right financial products are particularly helpful for young students who may never have handled their own money before — more than 40% of college students say they are ill-equipped when it comes to adequate financial skills and literary knowledge[2] — and who happen to have a lot on their plate heading back to school.

One of the first financial tasks a student will encounter is finding the right checking account. While a typical checking account might not offer the right features for all students, a student checking account can be great fit.

That’s if you know what to look for.

Why do I need a checking account?

A checking account is a basic financial tool that allows people to store their money safely and conveniently. Students who worked throughout high school might already be familiar with a checking account. But for those picking up their first jobs, dealing with incoming student loan money or who are receiving a monthly allowance from outside sources to help fund their education and/or additional collegiate financial needs, a checking account is the perfect — and safest — place to store that money until it gets sent where it needs to go.

You can usually pay your bills directly from a checking account, as well. This allows you to set up automatic, reoccurring payments. That means you’ll never miss a deadline, and you'll avoid paying potentially hefty late and/or penalty fees.

What features should I look for in a student checking account?

Whatever student checking account you decide to go with should have been designed for young users with specific needs. A few features to look for in an optimal student checking account include:

• No minimum balances or monthly service fees. Some traditional checking accounts require that you always keep a certain amount of money in the account, or receive a monthly direct deposit, to avoid paying a monthly fee. These fees can sometimes be pretty high, especially for students who aren’t yet earning a lot of money or receiving a direct deposit.
  
  
• Online and digital features. One national survey found that 57% of people between the ages of 12 and 27 primarily use mobile banking[3]. With online or digital features, you can access your account from anywhere, manage and monitor your money, deposit checks through the app, make payments, set controls and alerts, and so much more.
  
  
• Digital wallet. Keeping cash on hand at all times just isn’t convenient for a busy student, and carrying a credit card around on a crowded campus comes with its own risks. With a checking account that offers digital wallet, you’ll be able to connect your Apple Pay, Google Pay or Samsung Pay to your debit card. Then you can pay in-store directly from your mobile device. It's by far the easiest and safest way to pay.
  
  
• Zelle. Similar to digital wallet, Zelle is a fast, secure and convenient way for students to transfer money directly from their checking account to other sources.
  
  
• Budgeting tools. The ability to access additional financial management tools can be very helpful to a college student just gaining their financial footing. For example, a money management tool might help you keep track of how much you spend on certain categories each month (so you can see where it makes sense to scale back, when necessary). It can also help you to set specific financial goals, or to gain a better picture of your overall finances by linking to other financial institutions.
  
  
• Text banking. By signing up for text banking with your student checking account, you’ll receive text notifications for things like balance updates, low balance alerts, large deposit alerts and high payment alerts. These features can be an excellent way to take your financial management to the next level, and to stay on top of any potential fraud.  
  
  
• Convenient cash locations. Sometimes a virtual payment option just won’t do. For those times when you need cash, it helps to have access to ATMs and bank centers near your school, and/or to ATMs that allow free access around the world.  
  
  
• Easy fund transfers. It’s not uncommon for college kids to need to transfer money between accounts at a moment’s notice. In times like those, it helps to have a student checking account that allows transfers between other financial institutions.

Most students have so much to keep track of when it comes to heading to college that finding the right checking account can easily slip their mind. Don’t feel pressured into picking any old account. Old National Bank can help. Check out our student checking page for more information, or check in with a client care specialist who can help walk you through the best options.