3 Tips For Signing Up For A Savings Account As A Teenager

15 December 2022
 Categories: Finance & Money, Blog


Whether you have income from a part-time job, have received a financial gift from family, or otherwise have the money you would like to set aside for the future, signing up for a savings account is a wise step. A savings account is an ideal vessel for setting aside money and allowing it to accumulate. This money can help you in the future when you need it. Here are three tips for signing up for a savings account as a teenager:

Shop Around Before Opening Your Savings Account 

Before you commit to a bank for your savings account, be sure to shop around. Banks offer varying interest rates on savings accounts. In addition to earning interest, you want a bank that makes it easy and affordable for you to manage your account. Avoid any banks with large fees as this defeats the purpose of saving money. You should also find a bank that has a user-friendly app so you can check your balance and transfer funds whenever needed.

Decide on Your Savings Goals 

Knowing what you are saving for will help keep you motivated and on track. Are you saving up for a specific purchase, such as a car? Are you planning to use your savings to pay for part of your college tuition? Or would you simply like to build a nest egg for general financial security?

Write down your savings goals and refer to them regularly. Be sure to include a dollar amount you would like to save by a certain date.

Automate Savings as Much as Possible

In order to turn saving money into a habit, it's a good idea to make it as automated and simple as possible. If you have a job with direct deposit, you can request that a percentage of your paycheck go into your savings account each month instead of a checking account. Another option is to set up a linked checking and savings account, and then set up an automatic transfer from your checking account to your savings account.

You can set this up to happen weekly, monthly, or however often works best for you. If you aren't sure how to do this, the bank teller will be happy to help you.

Getting signed up for your first savings account as a teen doesn't have to be stressful. Simply follow the tips in this blog post to get a head start on a sound financial future.

For more info, contact a company like Bellco Credit Union.