PERSONAL FINANCE

Opening a bank account is a very important step in reaching your financial goals. The sheer amount of options can seem overwhelming but in reality, once you understand the options it is quite simple. Conceptually speaking, a bank account is a pool of money kept in a bank that you can put money into (deposit) and take money out of (withdraw). The bank pays you a small fraction of the money you keep in your account, either monthly or yearly. 

Firstly, the types of places to open an account are banks, credit unions or online banks. For simplicity's sake, it is usually helpful to open your first account at the same bank as your parents or legal guardians, but you should find out what works best for you. Generally speaking, banks and credit unions are fairly similar, both have physical locations where you can deposit or withdraw funds, and do a variety of other financial transactions. Online banks on the other hand, do not have actual locations and are fully online. Regardless of which option you go with, generally the best type of account for teens is a student checking account. They usually are less expensive than other options and have a lot of benefits. Most banks also offer mobile banking in the form of an app where you can check your balance and even deposit checks. 

To set up a bank account if you are under 18, you will need one or two forms of ID (driver's license, social security card, or copy of birth certificate) and your parent or guardian's permission. The first step to actually opening an account is first seeing what actual bank option is best for you, and then depending on the bank, either visit their website or branch location. From there an employee will walk you through the step and in less than an hour, you are one your way to financial freedom and success!