Once you hit 18, you’re on your own. Well, probably not. But you should start to branch out and gain some independence when it comes to how you bank. You’re probably looking for a little advice, right? We’ve compiled a list of six basic money management tips for you.
If you haven’t taken care of any of the items on this list yet, don’t worry! Use it as a money management tips checklist to see what you need to do and how to go about taking care of it.
If everything seems a bit overwhelming, rest assured that it’s not that bad. If you want to bank at Arsenal, we’re always just a live chat away from helping you.
Quick links:
Open a checking account
This is going to be your main account for paying bills and making everyday purchases.. It’s connected to your debit card. While it’s called a checking account, you’ll probably never even write a check.
If you’re just starting out with one of your first jobs or going to college, you probably won’t make enough money to earn interest on your checking account. And that’s okay! Pay no monthly fees with a Free Checking account at Arsenal.
You’ll be able to monitor and keep track of spending on your checking account when you sign up for online + mobile banking (more on that below). With an Arsenal checking account, you’ll be able to access 5,600+ shared branch locations across the country, which is perfect if you’re planning on attending college elsewhere.
Get a debit card
Like we said above, your debit card is connected to your checking account. Many people say that they’re putting money on their “debit card,” but they’re actually putting it into checking and using the debit card to make purchases.
Your debit card will be your main tool for making purchases. Make sure you’re using your debit card (or paying cash) when you can and not relying on credit to make purchases.
When you open an account in person at Arsenal, we’ll give you an instant-issue card. If you open your account online, your card will come in the mail a few days later. There are a million different things you, and here are just a few:
Apply for a credit card
Sorry if this isn’t the most straightforward thing you read in this blog. You want to get a credit card, but you don’t really want to use it that much.
Most young adults don’t have much of a credit score. Opening a credit card helps you build your credit score, which will help you get great, low rates when you need to borrow funds for a car or a home down the road.
If you have enough of a credit history already, you can apply for a traditional credit card. If you don’t, don’t worry. A secured card lets you borrow based on the funds you have on deposit at Arsenal. Pay off what you spend each month, and you’ll start to build a rock-solid credit history.
You can even watch your credit score grow, in real time, using the Savvy Money tool available in online + mobile banking.
Start an emergency savings account
If you are currently working, now is the best time to start saving money. You can set up an instant direct deposit into your checking account using online + mobile banking. You can even have an automatic amount from your paycheck sent directly to your savings account so you start building up an emergency fund.
Need to take baby steps to increase the amount of money that goes into your savings account? The Spend to Save program rounds up every transaction you make, using your debit card, to the nearest dollar. It automatically deposits the “change” into your savings account.
Monitor your accounts, digitally
Setting up your accounts is the first step to gaining independence. Monitoring and managing your accounts is what you need to do to make sure that you keep that independence and avoid fraud.
When you open your checking account, our team will also help you create your online + mobile banking account. You can access online banking from a computer. Or, access your mobile banking account by downloading our app and using your smartphone. There’s no wrong way to do it.
In online + mobile banking, you’ll be able to see all of your transactions in one place. If something seems off to you, you can report it. But that’s not even close to all you can do:
Pay off debt, fast
So you got into debt? Don’t panic, just make sure you pay it off. The interest rates on most starter credit cards are astronomical, making it difficult for your to save money for your future.
One of the best ways to pay off debit is called the snowball method. You’ll start with your loan or credit card that has the lowest amount of debt on it. Pay it off, then start working on your loan or credit card with the next most debt on it.
Instead of dreading how much you’ll have to pay on your loans and credit cards each month, the snowball method lets you see your progress, encouraging you to keep working on your goals.
