Opening a bank account Why Do I Need one? Banks can be a hassle—especially when you factor in all the fees—first, to open a bank account; second, to use certain ATMs; third, if you overdraft, that is, spend more money than you have in your account. Plus, bank hours are not always convenient. But, banks are an essential part of life. You might have been told that it’s too risky to
keep a lot of money in your house—what if there’s a fire or earthquake? And carrying around wads of cash makes you an easy target to rob. More important is the fact that you want your money to work for you! Money in a bank account makes it easier to make purchases in stores and online; it can earn a little interest (more on that topic later); it can even give you a reputation (hopefully a good one!).
When your money is in a bank, the Federal Deposit Insurance Corporation (known as the FDIC) automatically
protects it, up to $250,000. When you get a job, you can have your paycheck automatically deposited into your bank account, which means you’ll never lose it or spend the money too quickly. A bank account comes with an
ATM card, which you can use to withdraw money at any time to pay for gas, food, a movie—just about anything.
How Do I Get Started? Opening your first bank account is a big deal. It means you’re ready to be responsible for your own money—for
how much you spend AND how much you save. You’re starting down the path to financial independence. The first
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