It is often the little things which, when added together, can be a real drain on your finances. That $4 cup of coffee from Starbucks, the $2 bag of chips you bought from the convenience store, or that $12 per month checking account with your local bank are costs that add up.

With gas prices at record levels, finding ways to save money while attending college is critical toward helping you stay solvent. One area of savings often overlooked are college checking accounts, a fee you do not have to pay. Let’s explore some of the options available to help you keep as little money in the bank for no monthly fees.

Bank fees of $12 or more per month for checking mean that you could be paying $144 or more annually to your bank alone.  Add in the cost of the occasional wire transfer and overdraft charges and your annual costs for maintaining a checking account can run into the hundreds of dollars.

Some banks do offer a plan for college students to get their checking accounts for free. The requirements vary, but they can include one or more of the following features:

A minimum opening amount: Many banks will give you free monthly checking provided you open up your account with at least $100. Some banks will require that you maintain at least this amount monthly to avoid a monthly fee, while others will allow you to draw your account down to $1 without being charged fees.

Free overdraft checking. If you are worried about overdrawing your account and being socked with fees of $29 or more per overdraft, then setting up an overdraft line of credit can be helpful. You’ll pay a small fee for each time your line of credit is tapped and you’ll pay interest charges on borrowed balances. However, you won’t pay any fees until/unless your account is tapped.

No charge transfers — If you need money deposited into your account, many banks will charge you a fee for a wire transfer. However, if your account is at the same bank as your parent’s account, they can deposit money into your account quickly and fee free.

Free student credit card – An extra level of insurance can be had if you opt for a student credit card when you open up your checking account. Typically, credit lines are low and interest rates are rather high, but with a co-signer you could be offered an attractive rate. Choose offers without an annual fee for additional savings.

Discount on student loan rates — If you open up a checking account at the same bank backing your student loan, you could get a quarter percentage rate deduction on your loan. That may not sound like much but over the years you could save hundreds of dollars (or more) in interest charges.

Of course, no deal is a good deal without online access, a free ATM card, and a host of other usable services. Shop around for your student checking account and you’ll find a deal that could save you hundreds of dollars annually in bank fees.

Resources

Private Student Loans

Student Aid Chart For Undergraduates

Tags: bank account, checking account, free checking, Student Loans

You’ve seen them in the student center, you’ve come across them on the way to the library, your dorm, even on campus billboards. What am I talking about? Credit card applications!

Yes, credit card issuers would love to have your business even now when you probably have the least amount of money to your name. If you aren’t careful, credit card debt can mushroom rapidly, adding one more burden you’ll have to shoulder once you graduate college. Trust me, you’ll have your hands full if you took on a lot of student loan debt!

Oddly, learning how to handle money isn’t something typically taught in school. You could graduate with a B.S. in Business Administration and be terrible with managing your money. The following are some tips to help you keep your financial picture clear while enrolled in college:

Get Your Free Checking — Plenty of banks offer free checking, especially to college students. Some require that a small balance ($100, for example) be maintained to avoid fees, but many banks will waive these charges. After all, they want your business for many years to come!

Control Your Credit Cards — Do not use your credit card to make everyday purchases. If you do, then you may quickly find yourself overwhelmed by debt, unable to keep up with payments. Use credit cards for emergencies only. Avoid all cards that charge an annual fee.

Make Payments On Time — Even while in school, your credit record is taking shape. By the time you graduate college, you’ll have built up a rather robust credit history. Pay all of your bills on time and your credit rating will be good.

Set Aside Some Cash — When you don’t have a whole lot of money coming in, setting aside some cash for the future doesn’t seem to make sense. However, even a small stash of cash can be useful to cover expenses and emergencies, a much better idea than going into debt.

The financial habits you create, especially good ones, can serve you well for many years to come. Develop a disciplined financial strategy now and you’ll save yourself from many headaches later on.

Tags: college funds, credit cards, free checking, money tips, student debt, Student Loans