Eldest members of Gen Z are starting to enter the job market and earning their own money. Since proper financial skills are not taught in school, it is often hard to know what to do with your money. The first thing you need to do before anything else is to open a checking account. These are the five main benefits of having your own checking account:
1. Direct Deposit to Get Your Money Faster
There is nothing better than receiving a paycheck after a long week of work. You will be able to access and use this money a lot faster if you have your own checking account. Your employer can deposit your paycheck directly into your checking account every week. You will likely even see this money show up a day before you are scheduled to get paid. Without this bank account, you would need to find someone to cash your paycheck. This could potentially delay getting your money by a few days.
2. Take Advantage of Online and Mobile Banking Apps
Nobody knows the power of the internet better than your generation. You have had it at your fingertips since you were born. There are few industries that have been revolutionized by technology more than the banking industry. Opening a checking account lets you manage your money from any location online or using your bank’s mobile app. This opens you up to a whole new form of money management that cannot be accomplished without a bank account.
3. Earn Interest
Using your own money to make more money is the perfect way to improve your financial situation. There is no easier way to accomplish this goal than by letting your money accrue interest in the bank. This is essentially the bank’s way of rewarding you for trusting them with your money. A small interest payment will be added to your account every month based on your balance. As you add more money to your account every month, the interest payments will gradually increase. Not every checking account pays interest, so make sure to do your research before choosing your bank.
4. Keep Your Cash Secure
The only way to keep your money completely secure is by having it in a checking account. Banks are insured by the Federal government to protect all of their customers. This insurance guarantees your money is safe while it is in a checking account. The bank will reimburse your account if your money is ever fraudulently stolen. There is no protection from theft when carrying cash. You will also not receive any theft protection from cryptocurrencies or the popular mobile payment apps.
5. E-Transfer or Pay Bills Online
There is no bigger sign of growing up than having to pay your first bill. This can be for a car payment or a credit card designed to help build up your credit history. Paying off your financial obligations will be a whole lot easier with a checking account. All you have to do is go online and enter your financial information to instantly pay the bill. You can even set up a recurring payment to have the money automatically withdrawn from your account every month. Sending money to your friends or family is just as simple using the e-transfer service from your bank.
