by Tracy Blankenship

Created on: September 23, 2009   Last Updated: September 28, 2009

How to handle your finances when you are (almost) on your own at college can be a major learning curve all by itself, and can set a pattern that may follow you the rest of your money-earning life. Unless you plan on keeping a jar of change on the bookshelf and a wad of bills in the mattress you will probably need the services of a bank sooner rather than later.

Many students start learning about banks and tracking finances with a joint account with one or both of their parents. For those who are new to a bank, some factors to consider in your choice of banking institution are:

*location and hours

*account plans and fees

There are probably two or three major banks with branch offices on or near the campus and which have ATMs nearby. Walk into one of the branches and ask at the information desk for brochures describing their choice of bank accounts. Do the same with a competing bank. Try a credit union, too.The friendliness and willingness to help demonstrated by the staff in the bank is definitely a consideration when choosing where to open your account.

Keep track of where the branch and ATMs are located, and how convenient they may be at odd hours of nights and weekends. The credit union may be right next door to the laundromat, but if you can't make a withdrawal on Sunday it might not be the better choice. Once you have the brochures in front of you, compare the different account features.

For basic banking, you want to go for a no monthly fee account that doesn't require a substantial monthly balance. The bank may have an option specifically labeled "student" account, but that may not always be the case. Another feature which is a definite plus is an overdraft protection plan. This may be linked to a savings account, which would require you to open not one but two accounts and stash a portion for your overspending accidents.

Considering the hefty fees ($30!) for each occurrence, it's definitely worth a little nest egg for peace of mind. If you plan on spending a lot of time in front of your computer you should inquire about on-line banking. This will let you check your balance an anytime, make a transfer from one account to another, and receive statements electronically. You may have to choose between paying a small monthly service fee in order to get full array of account perks vs. a no-fee no-frills plan.

If you've never been responsible for an account before, ask the bank representative to show you how to keep your checkbook register legible and how to reconcile your account. Using the ATM is usually not too hard to learn, but again, if you're new, ask for a demonstration. Keep your personal identification number (PIN) away from your card. Don't even keep it in your wallet.

If you lose your checkbook or card, call the bank ASAP. The sooner you call the sooner you won't be liable for unauthorized charges made to the account. Even if you find your card in the pocket of the jeans you wore two days ago, you don't want to take the chance that someone is buying out the fancy jeans store and eating high class food on your dime because you were embarrassed to tell the bank you lost your card again.

If you give your bank account regular attention, even for just a few minutes a day, you can stay on top of your finances and hopefully, stay out of the red.

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