Posted on October 11, 2019 at 7:05 AM
When you’re at Cégep or university, managing your bank account is not a very complicated task. There are no additional fees or other requirements that would increase your stress. The situation changes when you leave school and enter the job market. When you were in school, you probably got a free check account. Now that you have graduated, you must have a detailed understanding of the banking process. Here are five useful banking tips in your twenties.
Be aware of fees associated with your account
As you are no longer eligible for student accounts, you need to start learning to better prepare yourself. It’s important to understand how your account works and the fees associated with it. This is the only way to avoid penalty fees.
Remember that the primary purpose of the bank is profit. As a result, they may not disclose all fees because that is their way of making money. Ask and they will explain everything to you.
The additional fees are often less than $ 5 or sometimes even less than $ 1. It is easy to ignore them. But once they start adding up, you will see their impact on your balance. If your goal is to save, make sure you do not throw away the money by paying these bank charges.
Spend reasonably. Your purchases are monitored
When you make purchases with your credit or debit card, your expense history is cataloged. Banks want to see how much your money management is responsible for, especially if you are one of their customers.
This point is less about the debit card because when you use it for your purchases, you spend the money you own. On the other hand, if you want to apply for a credit card, bad spending habits could sometimes complicate the demand for a credit card.
Limit money transfers
Do you know if your bank charges a fee for money transfers? If you do not know, then stop as soon as possible. You may be spending your savings simply by transferring money from your chequing account to the savings account.
The bank of course wants your money to stay at home. Thus, they can make money with your account and with the transactions you make. If you need to make money transfers, plan your financial transactions to avoid the extra costs.
There are many other rules associated with money transfers. Make sure you know which ones apply to you, you still do not want to throw your money out the window.
Save as much as possible
You have just graduated and the money is not flowing, but it is still very important to save.
Think about the future and anticipate all potential emergencies is certainly not one of your priorities. On the other hand, accidents and emergencies happen, so try to save as soon as possible.
Once you earn enough to save regularly, you must be very disciplined. Make yourself a plan and save every payday. Ten percent of the income would be ideal, but for starters, any amount will do the trick.
Recheck your checks
When you make a purchase with your credit or debit card, it immediately appears on your account. However, when you write a check, it may take a few days to appear on your account.
During these few days, other purchases can accumulate and, suddenly, your check is refused. This is a serious problem when the check is declined or your account is in the negative.
If you pay for important things by check (rent, bills) in advance, monitor your other expenses and keep an eye on your balance. Spending extra money on short transactions is not pleasant.
Bank account management differs when you are in school and when you are in the labor market. On the other hand, the transition can be very pleasant and easy if you correctly inquire about fees and rules associated with your account. Follow the five tips above and you will avoid wasting money.
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