As a high school student, money matters take a more prominent position in your life than they ever have before. You probably will soon begin thinking about jobs, earnings, and what you can do with those earnings. Here is an introduction to the complex world of money and some tips on how to be smart about your finances.
1. There are many opportunities for employment as a high school student. Whether you baby-sit or work at the grocery store, earning money is great. But, do not let it get in the way of your classes or homework. And be sure you are in compliance with the laws governing student employment.
2. Now that you have some money, it’s time to think about what to do with it. I started a bank account when I got my first job. It’s not only a great way to start budgeting, but is also a convenient way to keep up with your money. Ask your parents, guardian, or a trusted adult where he or she banks. This is a way to do some research on which bank might be best for you. Also, your parents or guardian may have to cosign with you on the account, so it may be more convenient to bank in the same location. At many banks, students are eligible for accounts with free checking and a debit card. This could be a major factor when deciding which bank to choose.
3. A debit card and checks are good things to have. Today, debit cards are quickly replacing checks as the most popular way to access funds in your bank account. Still, there are pros and cons to each. When you have a debit card, because it is so easy to use, you may be tempted to spend a lot. You may not save receipts or keep an accurate record of your deposits and purchases. DO NOT fall into this trap. Receipts are the only way to make sure your records are accurate. What if your card was stolen or your account was compromised? You would never know or be able to prove your case if you didn’t have the appropriate documentation.
That leads me into the safety issue of debit cards. Be careful to protect your pin number and do not share it with anyone except maybe a parent or guardian. When you type in your pin, be careful to make sure that you do not show the card number or your pin number to anyone. You never know who is watching you, so keep the card in the palm of your hand or in your wallet until the cashier asks for it. Finally, when using the Internet to make purchases with your debit card, be careful. Never pay using a site unless it has a valid security certificate, which is indicated by a closed lock in the bottom right hand corner of the browser window. When entering your card number, double check to make sure it is correct. In order to ensure that no one can access your account information except you, be sure to log out of any site when you finish your transaction, and don’t forget to print or save your receipt. Keep your passwords private and hard to crack, i.e. don’t save them on your computer. Now that your checking account number can also be used for online payment options, you should be careful when using it too.
