If you cast your minds back, you might remember seeing (and hopefully reading!) our introductory blog to Money Management.
In the blog, we spoke about a wide range of topics we wanted to cover to help you get the most out of developing your financial literacy and boosting your confidence in all things money management.
This list was everything we wish someone had taught us about when we were younger, and this is the first official instalment of the Explore Careers Money Management Series!
We thought we’d start with the basics and tackle the important topic of opening – and managing! – your very first bank account.
Why You Need a Bank Account
Whether you want a safe place to keep your money or you’re starting your first job and your employer needs to know how to pay you – having a bank account will quickly become a vital part of your life.
To start with, you should only need a basic transaction account; most banks refer to these as ‘Everyday Accounts’. They should be free to use and open.
Bank accounts give you:
- Autonomy over your money; whether it’s pocket money, savings, birthday money or wages – you can keep everything in one place, ready to manage how you like.
- A convenient way for employers to pay you.
- A way of paying bills when needed.
- A bank card gives you safe, quick access to pay for goods when needed.
What to Look For When Choosing a Bank
When you get started, you’ll likely only need one of two accounts – perhaps both depending on your financial goals and plans:
- A transaction or ‘Everyday’ Account
- A Savings Account
Everyday Accounts
Everyday Accounts are ideal for daily banking, making payments in and out, receiving wages, paying bills and withdrawing cash from your bank card. There are many different banks to choose from, and most young people will opt for the same bank as their parents, which is understandable.
If you’re not looking to bank where your parents bank, you should look for an account that offers:
- The ability to bank anywhere and anytime, either online or via a secure app.
- $0 monthly account fees
- A debit bank card and secure pin for daily use.
How to Open an Everyday Bank Account
If you’re 14 or over and have an Australian residential address, you can usually open an account online with your chosen bank or head to your nearest branch with your ID to get started.
If you’re under 14, your parent/legal guardian will need to accompany you to help get you set up.
Savings Account
If you’re just looking for an account where you can start collating all your hard-earned pocket money, birthday or holiday money, and additional funds without looking to spend it right now, a savings account is probably right for you.
Savings accounts help you put money aside and tend to offer better interest rates than normal bank accounts, meaning the bank will top up your account every month depending on how much you have saved there already. See it as a ‘thank you’ for using us type of thing!
When choosing a savings account, look for:
- An account with zero monthly account fees.
- A reasonable interest rate, with a monthly bonus when you don’t make withdrawals.
- An account with no minimum deposit.
- Online savings account linked to your Everyday Account Smart Access, so you can easily keep track of your savings.
- The ability to set savings goals to help you stay on track!
How to Open a Savings Account
To open a savings account if you’re 14 or over, you’ll likely need to visit the nearest branch of your chosen bank with your birth certificate or passport to open an account.
Parents or legal guardians can set up savings accounts for anyone under 14 and assist with managing and paying into the account.
3 Pro Tips For Managing Your Daily Banking
Opening and managing your bank accounts might feel like a good mix of exciting and daunting!
It’s a significant first step towards becoming an autonomous adult, and some of the habits you put in place early on will help steer you towards financial success as you grow older.
Here are three pro tips to get you started:
- Utilise Apps to Stay On Top: Once you’ve set up your account, it’s a good idea to download the relevant banking app onto your phone and get set up there too. Banking apps allow quick and easy access to your accounts to stay on top of your money management.
- Check Your Statements: It’s a good idea to check your monthly statements thoroughly, especially any outgoing transactions, to check for fraud or other anomalies. Fraud is unfortunately very common these days, especially if you use a bank card online via unsecure sites, but it can usually be resolved quickly. If you notice anything unusual, you’ll need to speak to your bank quickly to get things sorted.
- Set Goals & Stick to Them: A great way to get more familiar with using your accounts and creating good money management habits is to set a savings goal and stick to it! It’s a good idea to start small (so you can realistically achieve it) and keep going from there. You’ll be surprised by what you can accomplish when you put your mind to it.
Stay Tuned For More!
As we said, this is the first step in an ongoing series we’ll be bringing you all about money management – and we’d love to hear from you on this!
Are there any big questions you have about any aspect of money, savings, tax or debt? Drop us an email and let us know, as we’d love to ensure the information we bring you ticks all the boxes.
