Modern finance is big business. Community banks are everywhere, accounting for 99.5% of all banks, and in some counties, they may be the only physical bank available. Today’s society is also widely considered a cashless one, with 6 in 10 Americans agreeing that credit and debit cards, and online transactions, have almost totally replaced physical money. Mobile banking, then, has clearly moved in and taken up a large share of how Americans handle their money. What can customers today do to manage their finances?
Youth and Money
American teenagers and young adults are gaining enough responsibility and need to start having and managing bank accounts and their own finances, but they are not always ready. They also have considerable debt: the average college graduate has $20,000 or more in student loan debt, and nearly all home buyers under the age of 36 have to finance their homes, while not nearly as many buyers over the age of 62 have to do the same. It can also be argued that today’s youth are not properly educated about finances and banking, or choosing a bank, or how to apply for a bank account. Money matters, so educating oneself about finances can go a long way to having personal security.
Choosing a bank, starting online banking, and making use of mobile banking does not have to be intimidating. There are clear steps to follow, and a person can choose the type of bank and account based on their needs and interests. According to Wallet Hub, personal identity is the first step. State-issued driver’s licenses are a common option, along with passports and non-driver state photo ID. A social security card or birth certificate may also be needed, as well as proof of address, such as a utility bill. Then, visiting a branch location or going to their website allows the person to fill out their application. Making an initial deposit may also be necessary once the account opens. The customer can also set up direct deposit with this account.
Different account types work for different needs. A savings account, for example, a savings account could be made for personal emergency funds or setting aside money for personal goals, according to Nerd Wallet. By contrast, a checking account is most useful for writing checks, paying bills, and making debit card purchases. A savings account may have a high interest rate, and a checking account provides convenient ATM access.
Mobile banking allows anyone with an account to view and manage his/her finances. Computer tablets and smart phones with Internet access are a common route, and today’s young adults are often very familiar and comfortable with this technology, and take these devices anywhere. This makes it easy for young bank account owners to use mobile banking to transfer money between accounts, pay bills online, make deposits and withdrawals, and plan ahead for their finances. Cyber-security is a concern; bank robbery is not just a physical act nowadays. For this reason, bank account owners are encouraged to create strong passwords (difficult to guess or intuit) and not give those passwords away. Mobile banking with public or unsecured Internet connections can also be risky, since a stranger in that network could possibly intercept data and steal passwords, bank account numbers, and more. Smart phones, such as iPhones, may also have bank-specific apps, making mobile banking even more convenient and intuitive on the go.