Crucial things to remember with student bank accounts
Obviously we’re big fans of online competitions here at Winzum, but that’s not all, because we’re also really passionate about helping our lovely online competition community too. For many people going to university is the first time they will be apart from their families for such a prolonged amount of time, and there are also a wide variety of things to sort out too – how to cook, how to clean, a student bank account, etc..
In fact, setting up a student bank account is actually one of the most important things to do when you or your child is first setting out on their university journey. Money is often tight here, and the balance between socialising, surviving and not going bankrupt can be difficult. That’s why we’ve compiled a few crucial things to remember with student bank accounts, and if you fancy a few more student money management tips let us point you in the direction of this article [a few of the best ways to save money].
No credit cards!
We really cannot stress how important this is: if you are at university, please please please stay away from credit cards! We know how tempting credit cards can be, especially if you are a student with your eye on new clothes, records, booze and anything else you might want.
But here’s the thing: credit cards are designed for people with solid incomes, they are absolutely not designed for students. Getting a credit card will most probably ruin your student money management skills, and you might be left begging your parents to pay off your outstanding balance.
Make sure you have an overdraft
One of the most appealing things about student bank accounts is the fact that the best ones [best student bank accounts], will all have fairly generous overdrafts, and it is essential that you make sure this is the case if you or your child are looking for a dedicated student bank account.
With an overdraft you are able avoid unarranged overdrawn fees, which is extremely useful for student life where money can be tight. Nobody wants more overdraft fees on top of the debt you’re already in, so this is a great way to keep more financially stable.
An overdraft isn’t just free money
Whilst overdrafts are essential when choosing student bank accounts, it is also crucial to remember that an overdraft isn’t just free money! At Winzum we have seen many first year students treat their overdraft a bit like a Christmas present, and then descend into panic when they realise they need to pay it off several years later.
So keep that in mind – an overdraft isn’t just free money! It is there as a safety blanket, but you will be sabotaging your money management skills big time if you treat it as anything different.
Always read the small print
As with plenty of other things in life, it is always extremely important to make sure you are always reading the small print when it comes to choosing a student bank account.
Banks are more than likely to draw you in with some tantalizing overdraft and interest offers, but if you don’t read the small print you could find that you’re not even eligible for these bonuses.