Best Financial Choices for College Students

by Linn Hilrigel

If you are a student you know how tight money can be, and how hard it can be to manage what you do have. If you are looking for basic financial options, both for spending and saving, there are five main choices that you have, which will likely be the best for your particular situation.

But it is important to know which institutions to use, what kind of accounts to go for, and who is more likely to have your best interest at heart as a young, college -age patron. Don’t be fulled into just going with the bank or lender your parents did…do some searching first.

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Five Best Financial Choices For University Students:

  • Checking Accounts – Stay away from banks if you are planning on opening a checking account, as they tend to give large fees, poor interest rates, and work for profit. Instead, go with a credit union, and check to see if your university offers one in particular where you can get a free account.
  • Savings Accounts – When looking for a savings account you will want to find something that has a high interest rate (most credit unions will offer between 1% and 1.5% yield), and a decent transfer limitation, such as five times per month or more.
  • Student Loans – A federal loan will always be more beneficial than a private lender. While private lenders like Citibank will give you more money the current financial crisis has taught us how unscrupulous they can be. You will likely end up with a higher and higher interest rate, fees, and a less than stable account.
  • Credit Cards – A low interest rate is a must here, and you may want to make sure you have a low credit line limit. This will keep you from over spending and getting in over your head.
  • Investment Accounts – Go with a well known company that offers a low-minimum account with a high interest rate, and you will be golden. If you worry about touching the money and want a long term investment you can always open up an account with a credit union with a 1, 2, 3, 4, or 5 year yield.

Learn more about the Best Financial Choices for College Students now.