Can you make a How to Adult video on finding a new doctor after you grow up, move out, get your first real job with your first real health plan, and so forth, possibly including instructions for those on medicaid?
Credit cards almost always only charge you interest if you don't pay them off in full every month. A good tip for anyone opening their first bank account can be to get a low limit credit card that you pay off in full every month, this will help you to start building a credit score (assuming you live in the US) This will make your life easier down the line as a better credit score will make it easier / cheaper the day you need it, say to borrow money for a car or mortgage. Get started early
Some credit cards don't just charge interest on unpaid balances; they may charge additional fees as well, regardless of your balance. In my (admittedly unresearched) experience, if you get your credit card through your bank, you are less likely to pay fees than if you were to, say, respond to a credit card offer through the mail.
PrimroseFrost Honestly, this will vary from bank-to-bank. There are some local banks that have a history of fee abuse (see USBank's overdraft class action settlement). The best advice is to check the terms of a credit card regardless of where you get it set up.
Gisikw I agree here, even more some mail invitations actually offer better deals than going directly to bank, it all depends on the institution behind it.
Many banks have fees! And lots of banks have student accounts where you have to prove you're going to school but it's SO WORTH IT because the fees are lower or the minimum balances are lower! And going in to talk to a banker is also amazingly helpful if you remember that they are trying to sell you a product but they can be super useful for information!
Bank accounts are good, but can we talk about credit unions for a sec? They often have better interest rates, lower (or nonexistent) fees, better terms, and since they are more locally-run their services and service tend to be more tailored toward the community they're in. Additionally, you can utilize shared branches all over the world just like you would your credit union at home, meaning that even if you travel, or, more practically, if you are a student attending university or doing an internship away from home, you can still access all the services you need without having to pay extra fees. I have had bank accounts and credit union accounts, and let's just say that there are a lot of reasons I now only use credit unions and encourage friends to do the same.
My mom helped my sister and I open our first saving accounts when we were in elementary school. I only closed that account when I was 21 or so, and I nearly cried when I did. Congrats on starting early. :)
Keep in mind that some banks charge fees for not having enough money in your account. About a year ago, the bank I was using had several local branches bought out by a different bank. As a result, I was pushed into this new bank with new rules that I did not completely understand. Somehow, I had been put in an account that charged a $25 fee if you went below a few thousand dollar. Unfortunately, I was charged about three of these before I was smart enough to catch on. Upon finding out about the fees, I managed to convince them to remove one of the charges, then immediately transferred over to local credit union. Having a place to put your money, whether it be a bank or credit union, is a super important part of being an adult, but it's also important that you educate yourself about the bank's services before setting up shop. Had I been more on top of things, I wouldn't have been charged those fees. In fact, I probably would have moved my money elsewhere to begin with because EVERY one of their accounts had some sort of fee, like for writing too many checks in a month. So when you start a bank account, don't pick one at random. Make sure that the bank you chose suits you. My credit union doesn't charge fees for low balances (although it requires you to have a minimum of $25 in your savings account), it has reliable ATMs (this was a another problem I had with the bank listed above), and a really user friendly online banking/bill pay service, which is great for me.
If you open a bank account as a minor, many financial institutions have "Young Savers" accounts which waive some of the balance requirements. They usually need to be linked to the account of an adult customer who is the co-account holder.
Tessa T To piggyback on this, some banks have special accounts for high school and college students that will also waive the minimum balance requirement. Also, some banks will do special offers to get more accounts made with them, so see if you can do that. I'm with my current bank because they gave me $100 for opening an account.
I just recently got my first job, and as soon as I receive my first paycheck I will be opening a savings account. Thanks for this video! As an upcoming senior in high school, a step like this is about as terrifying as trying to decide a future career for myself. I've started watching this channel fairly recently, and it's helping to quell some of the fears I have about turning 18 and graduating from high school.
Just out of interest, how did you get a job without a bank account? Like what do you mean by paycheck? In the UK, I've had to take my bank details during my first week at work and then the money is paid into my bank account. CAsh in hand is usually just for people who are self employed and doing thingts like kitchen fitting.
Can you guys do a video on credit scores - how they're calculated, what things affect your credit score and what don't? I feel like there's a lot of conflicting information out there (for example, if it's better to cancel a credit card or just pay it off and let the card's account exist with a $0 balance ad infinitum, whether it's better to close a bank account you're not going to use anymore or just let it hang out at the minimum balance, etc.), so a video explaining that would be really helpful.
Canceling a credit card will hurt your "credit utilization rate", which is basically the balance you have across *all* your cards, divided by the amount of available credit. So if I have two $300 cards, and I'm carrying a $100 balance on one, I'm using 17% of my credit. If I close the card which does *not* have a balance, suddenly I'm using 33% of my credit, which is worse. Credit Bureaus also like to see a long history of paying things off on time. So if you can charge a small amount to the card and pay it off every month, that may be better than closing it out. However, if you know yourself, and worry you might *spend* the card with money you don't have, you'll do better in the long run by closing it, so you don't end up carrying a huge balance forever and a day. Savings/checking accounts are not reported to Credit Bureaus, so it's pretty much up to you whether to keep it open/close it out. That said, if there are annual fees, get rid of it! Ain't nobody got time for that! :)
You can pay credit card statement bills on line directly from a bank account. (Leave enough time for the transaction to clear before the credit card bill due date.) It is good to have both a checking and a savings account (either at the same bank or that you link for easier transfers) because US savings accounts limit the number of withdrawals per month (I think it's 6 max) but you can transfer funds from the savings to the checking account and then pay bills from the checking account.
My (British) Primary school was sponsored by a major bank so everyone was encouraged to start with their under 18 scheme then, also before that my parents opened junior accounts for me and my little brother with a different bank soon after he was born. I found both schemes helpful, they can help you get savings under your belt before you are old enough to be paying bills and stuff, and its one less thing to worry about once you do have to be concerned with adult things (Alternatively a couple of my friends have accounts that their parents pay into, which they get access to once they turn 18)
Initially when i got a debit card i was nervous because I did not physically have the money and I thought I would lose track of the amount of money i had. But now that i got a hang of it, IT IS SO AMAZING. I basically only ever buy things online anyways, so now I don't have to ask my mom to do it for me XD
Keep in mind that savings accounts right now have a significantly lower rates than inflation - i.e. $100 thrown into a savings account will have (slightly) less buying power next year. They're a great option for short-term savings, but you'll want to learn more about investment options for medium- and long-term savings.
When I was in Georgia (the country, not the state), interest there was around 10% for a savings account. Unfortunately, the Georgian Lari is a closed currency, which means you can only exchange it for USD within Georgia or at one of the border towns in Turkey, Armenia, Azerbaijan, or (theoretically) Russia.
One thing to keep in mind with a checking account debit/credit card is that some banks might actually charge you some fee for a debit transaction. Luckily for me when I opened my checking account with a local bank way back when before heading off to college, the person I talked with told me this up front so I had no surprises later. (It gets rung up as a credit card transaction but it still comes from my checking account)
Could you do an episode covering tips on switching from one bank to another? I've had my bank account since I was a kid because my parents set it up for me. Lately I've been not so happy with them and want to switch to another bank with better service and rates. But the process of switching is SUCH a hassle. Would be great if anyone who has switched bank accounts could also offer their advice too.
I actually just did this a couple of weeks ago. I thought it would have been a much bigger hassle than it was. First I opened the account (or in my case accounts) at the new bank that I wanted to bank with. I gave myself a month or so to get direct deposit and automatic bill pay switched over. I then called my previous bank (which was Wells Fargo) and set up an appointment with a banker. When we showed up, my husband and I just had to sign a few papers saying we understood we were closing the accounts and they gave us the cash for the balance that was in there. No one gave us a hard time and it took a total of less than an hour.
How do I start saving for retirement? What's the account to open now (for retirement) that will have the best returns in say...40+ years? Or best thing to invest in?
This might not be a problem for literally anyone else, but I seem to have a problem knowing what food to buy. I've been house sitting the past few weeks and have had to buy my own food, which means I go to the store, walk around a bit, and end up walking out with cans of soup, some salad, and pasta. I don't know how to shop for balanced meals! I don't want to be eating gross soup forever! It'd be great if you could share some tips, or a checklist of some good basics to buy.
Would've been nice to hear some advantages/disadvantages of banks vs. credit unions. If you're going to make more financial videos, I'd also very much like one on budgeting and also retirement plans, if you can. Thanks, guys!
Some oversea trivia for you Mike 'cos I know how much you like that. In the UK checking accounts are called current accounts and most people use brick and mortar institutions, the vast majority of which have online/mobile services. Savings accounts generally aren't as liquid and there are virtual no charges for day-to-day banking.
How about making a video on negotiating terms when accepting a job offer? What kind of salary should you expect versus how much you want (and how to bargain for a higher pay) and how to determine the value of benefits?
could you do a video on what you need to do when moving to another state not for college purposes? For example, what would need to be done like registering your car, finding a doctor, getting that state's license, etc.?
I subscribed to this channel after the first trailer, and reading each title, I've come to realize I knew how to adult by the time I graduated high school.
please focus a future video maybe on how to approach saving money and what we should consider saving for, esp for those college students who tend to have a "disposable" income while having tuition to worry about. THANKS love the vids
Can you guys make a video explaining the basics of investing/ stock trading? usually interest rates for savings accounts are incredibly small so it might be a great idea to talk about more proactive ways of spending/investing money
I just joined People's United Bank, but what I want to know is what the difference is between "available balance" and "current balance" on their website?
I'd love a video on how to invest for long-term savings (i.e. retirement--40+ years away). Retirement accounts exist but they're confusing and I'd like to know other options too!
I'd be interested in learning more about investing, retirement saving, and saving accounts like cds. Also just as a question about online only banks, how do you deposit physical checks with them?
If it's an online bank, and you have no other bank account, how do you make the initial deposit? Also, to get a cash withdraw, do you need to go to a public ATM and pay a fee?
Credit Unions are also a good option - they provide many of the same services as banks, but the depositors are the shareholders, so the credit union operates with the intention of maximizing benefit to the depositors, rather than maximizing profit to a whole separate group of shareholders. I really like my credit union - it gives me everything I want from a bank with fewer fees.
How about a video discussing balancing a checkbook and money management tips and tricks. I'm personally struggling at the moment to manage my money from my job, and basically going from paycheck to paycheck.
So I'm going to be living in the US for 10 months while I work there, would you guys recommend a checking account? From what you said here, it seems just to be the same thing as a UK current account.
I totally need advice on this now that I'm going to college. I'm also going to take advantage of being an early commenter and say hi to Mike and also that we REALLY appreciate the work that you are doing!
Totally suggest an online bank like Capital One 360 if you're going to college. Most ATMs everywhere are free to use and all the major stuff is done online so its flexible :) r.capitalone360.com/hmFvcsbmZJ
I highly recommend looking in to joining a credit union if you're going to college. They are really flexible for students and have shared branches all over the world where you can deposit checks, withdraw money, and do anything else you may need to.
Can you do a video on applying for credit cards and basic info on credit scores? I've tried applying for one but was denied since I have no previous credit. HELP!!
Will you do a video about different types of loans? Subsidized or Unsubsidized student loans, car loans, etc. My parents did an awful job trying to explain that stuff to me when I started to adult. Now I'm 23 and still barely understand it.
Could you guys, maybe, please go over the best ways to go about building a good credit score? I think you and Mike are the awesome-est of sauces, thank you so much for everything you're doing!!! :)
Great video, I'd really appreciate if you can advise me of what type of bank account should have a new immigrant , and what should he or she do to avoid the fees and mistakes , thank you
Random question: Why can't you have more than one savings account with your bank? I want to have an emergency savings account and a vacation/Christmas savings account, but my bank doesn't do that -- do all banks not do that, or is it just mine?! Am I a crazy person because I want to separate my savings accounts?
Ok so I just opened up a checking account and got a debit card. I'm under 18 and my mom keeps mentioning but not explaining situations in which my card wouldn't be accepted because I'm under 18 or just because it's a debit card. Could someone explain more about this? I'm also having to wait to get a savings account because it seems no one can decide whether I should get it at a Credit Union or at a bank. A bank is there to make money while a Credit Union is a non-profit but then there's all these other things so nothing is happening. Is it better to just open up both?
Probably a better point for the next video, but I want to point out the debit cards work quite differently in Canada. We have a single standard debit network (Interac) that takes any and all bank cards, but those cannot be used credit-style for things like online purchases. Visa has recently started a debit network here and some banks are on board, and those cards can now be used at many places that take Visa credit (but not all). Still, it's a more advanced banking environment and Canadians almost never use cheques anymore (unlike you poor Americans that still slog them around).
I don't really understand the difference between checking and savings accounts. What can and can't you do with each? Why do we have the two types, instead of one single account?
But in the video they say that savings accounts are "liquid" and thus the money in them is immediately accessible. Are there actually limits to how much you can withdraw from a savings account?
aaa303 Yes. There is a federal restriction limiting how many times you can withdraw - it's usually 3 per month, though sometimes it can vary based on institution or what type of savings account.
***** I'm talking about specifically American savings accounts which are FDIC insured. I don't have experience outside, though all that sounds interesting. Also in America you only pay taxes if you earn more than $10 per year on the account, which with current interest rates almost never happens with basic savings accounts unless you have a looooot of money in them.
The video doesn't do a good job describing this, but since it's my job (I'm a membership officer at a credit union). I'll be glad to help! Checking accounts (I like to call them operating accounts) are accounts where the money you put in there is intended to be spent in the short term (which is why most checking accounts are not interest barring because the balance fluctuates too much) You spent the money through a debit card, written checks, or ACH (automated clearing house) which is just a fancy way of saying autopay. Checking accounts are not normally free, but there is usually a way to avoid the fee. Savings accounts are just that, for saving. You are not suppose to use that money for small everyday withdraws like a checking account. In the US there is a little thing called the Securities Act of 1933 and part of that is Reg D, which is a super complicated thing you don't need to read into. But what you need to know is that It requires banks and credit unions to set up limits to how many times you can pull out of a savings account. The dollar amount of money doesn't matter, but make too many withdraws from the account in a month and you can incur fees or even lock yourself out of the savings account. You should look through your bank or credit union's "rate and fee schedule" for a breakdown of the interest you can earn, their account balance requirements and what kind of fees and service charges you might get and how you can avoid them.
Please do one on washing dishes. I know how to load a dish washer, but need help when it comes to the logistics of hand washing. PLEASE!! (ps you guys are great)
With Ally/alie whatever online banking is it no different than having a debit card? can it be used on websites that requre debit/credit cards and can it only be used online??
Money withdrawn from an account posts immediately. Deposits, even cash, can sometimes credit to the account on the next business day and some check deposits have holds placed on them for several days before the funds are available. Be careful about getting deposits and withdrawals too close to one and other. It is very possible to deposit your pay check on a Friday afternoon and have your checks bounce or your debit card be rejected over the weekend because the deposit doesn't post until Monday.
Pretty much non sequitur, but I'd really like to know how pick fruits and vegetables from the grocery store. Apparently there's a rhyme and reason to it?
I have never had bank account before and I had never working but I have some saving money my question is it true that if we earn interest we have to pay tax please I need more information about this
If you can possibly avoid it, don't open a new account (checking, credit, savings) just before changing your address. Wait until after you have moved to an address where you plan to stay for a while. This is one of the red flags for fraud and you could find your account frozen and be blocked from accessing your funds until the financial institution completes its investigation.
Everybody keeps telling me to get a credit card, but why? What is a credit history and why does it matter? I don't like the idea of spending money I don't have that is why I have a debit card.
I understand that learning to drive is more of a teenage thing than an adult thing, but could you possibly make a video on parking? Reverse, parallel, anything? Driver's Ed is a terrible waste of time, and not very helpful. Thank you!
The money taken out of the ATM comes out of ones bank account. It is not a free gift from the bank. This might seem blindingly obvious but apparently it wasn't to a student at my university. She didn't feel the need to list those withdrawals in her check register and couldn't understand why the stupid bank kept overdrawing her account.
I don't like credit cards. You shouldn't be spending money you don't have (except a house). Over here (Belgium) credit cards come with a lot of extra costs so in the end your always off more expensive. (They aren't even accepted in smaller stores.) I have had a debit card since I was 12 and that has thought me a lot about money management. (Here its customary for the parents to open a savings account in the child's name on there birth, and get a debit account with card once the're 12 - 16 so I guess that helps :p)
From a Small Tree Using Ally as an example, you can do an initial deposit via wire transfer if you need to. That said, while Ally (and other online banks) tend to have better rates, I'd highly recommend opening your first account with a local bank - one that doesn't have any related fees. Online banking can be great, but having the ability to walk into the bank and dispute a charge, or get clarification on something can be very helpful when you're starting out. Of course, so long as there are no minimum balances or annual fees, you can go ahead and set up an account with a local bank, and use that to fund a higher-yield online account :-)
