"Where do you keep your money --in a bank or a coffee can?" asks Rowdy Cents.
Once you’ve “followed” your money on paper, you should “march” it straight to the bank. Having a bank account is an important tool for increasing financial wealth. Stashing money in a coffee can or under the mattress doesn’t give you more money, and it may very well disappear faster than you realize (through spending habits or theft).
Without a bank account, you may end up cashing a check at the local check-cashing store or pay-day lender. These places charge fees which may equal as much as 400% Annual Percentage Rate (APR). With a bank account, for little or no fee, you can cash a check (within the bank’s requirements). Additionally, you can have your pay check and/or financial aid direct-deposited to your bank account, which saves time and allows you to access your funds faster. Saving money is easier, too, when you set up automatic transfer of funds from one account to a savings account.
Choosing a financial institution should be like shopping for a car – compare features and costs to find the right one for your needs. There is one financial institution on the UTSA Main campus, Frost Bank, located near Starbucks. There are other institutions off-campus but nearby. Here are two web sites to get you started “shopping”:
- Findabetterbank.com will allow the user to specify a desired location, features, and fees.
- Bankrate.com has useful information on the basics of checking accounts. The site provides comparisons of rates on savings accounts, various loans, credit cards, and security ratings of financial institutions.
Some bank accounts will pay interest, although not much these days. But anytime you earn money on your money, you are "building" wealth. Another important step to building wealth is to manage your money wisely. Pay attention to your bank account balance. Whether you are paying with checks or with a debit card, write the amount down in the check register and subtract it from the balance. Get familiar with the bank's online banking services. It's a great way to view your balance and transactions any time of the day or night! Stay on track and stay the course as your future depends on the present.
Rowdy Cents advises, "Managing a small amount of money may determine if you get to manage a larger amount someday - like a car loan or a mortgage. Don't assume, that because you have still have checks in your checkbook OR a debit card in your wallet, you must still have money in your bank account!"
PAGE UPDATED 9/28/09
