Student: Teen & College Age
Learn to manage money and prepare for the cost of higher education
You may still rely on financial help from your parents or other family members, but it’s not too early to start cultivating sound money-management habits. Many financially sound adults accomplished their goals through careful financial planning that began when they were students.
How can you start on the path to sound money management?
1. Become a "Star Saver"more
Learning to save money in your teens and college years is an excellent habit that will train you to be a good money manager for the rest of your life. Set goals for your money and start saving NOW. If you have no immediate goals, your goal can be to have a “money cushion” for when that important need for cash occurs.
The Bank of Missouri offers saving accounts specifically designed for students:
When you are 18, you may open a savings account on your own, either online or at the bank. Younger students may open checking accounts with the co-signature of a parent, and you need to do this together inside the bank.
2. Start a Checking Accountmore
A checking account provides a means to learn how to responsibly handle cash, make smart financial decisions and keep track of your spending records. Whether you use a debit card or paper checks, your checking account can help you manage your budget, including paying your bills on time and balancing your checkbook. With these good habits, you can start building a good credit reputation NOW.
Student Select Checking – For students between age 14-24
When you are 18, you may open a checking account on your own, either online or at the bank. Younger students may open checking accounts with the co-signature of a parent, and you need to do this together inside the bank.
3. Plan in Advance for Collegemore
It’s never too early for pre-college students and their families to identify and earmark the financial resources they have available to fund a college education—whether from savings, loans, grants, scholarships or work income.
Here are some sources to help you and your parents plan how you will finance a higher education:
College Savings Plans – The Bank of Missouri offers several options to help you fund the cost of a higher education. It’s OK to start small, but start now with a college savings plan that both you and your parents can contribute to:
- 529 Plans – One of the most popular tax-advantaged college savings options.
- Coverdell Education Savings Accounts – A tax-advantaged education savings vehicle that allows you to contribute up to $2,000 per year.
- UGMA/UTMA Custodial Accounts - A custodial account is a way for you to hold assets in your own name with a parent (or another individual) acting as custodian.
- More Education Savings Resources and Information
Student Loans – The Bank of Missouri can offer personal loans for both students and parents to cover the cost of undergraduate and graduate school education.
- Personal Loans – Get a loan to cover any of your college expenses.
- Federal Financial Aid for Higher Education (FAFSA) – All college applicants and their parents or guardians should become familiar with the most recent FAFSA guidelines and deadlines which can http://www.fafsa.ed.gov/. Applications for federal student aid may also be available from your high school counselors, public library or college financial aid office.
TIPS FOR EFFECTIVE FINANCIAL MANAGEMENT
- Set a savings goal and keep track of your progress.
- If you have a job, don’t spend everything you make.
- Record ALL your transactions daily for your checking and savings accounts, whether they are made with debit or credit cards or paper checks and deposit slips.
- Know your account details such as overdraft charges, interest rates, withdrawal restrictions, minimum balances, etc.
For help determining the best accounts and products for sound and productive money management during your Student Lifestage, please contact us at 888-547-6541 or firstname.lastname@example.org.