Banking for Beginners
Whether it’s high school, trade school or college graduation there is a lot of excitement and a healthy dose of reality that comes with being on your own. BancFirst is here to provide some helpful financial direction as you start this new chapter in your life. Here you will learn techniques about creating a budget plan, starting your own credit journey, saving for the future, and choosing banking accounts that are right for you.
Budget Tips
To be successful at anything, you need the right information and a good plan. That goes for your finances, too. It’s important to create a budget plan when you begin living on your own. When you begin to establish a budget, consider all your monthly expenses including rent, utilities, food, insurance, and gas.
Always remember to base your budget on your take-home pay rather than your wages or salary, since this amount accounts for taxes and deductions and will give you a more realistic view of what you can spend. Be sure your take-home pay can cover your expenses while still allowing you to contribute regularly to your savings.
There are numerous online tools to help prepare and stick to a realistic budget. BancFirst customers have access to our robust Money Management tool, part of our online banking services. With Money Management you can see how much money you have, where you're spending it, and what your debt situation is. With everything right there in front of you, it's much easier to set a strategy to help you reach your goals.
Credit Score Matters
Your credit score is used to determine the level of risk a bank will incur if they give you a loan. This can also impact your ability to rent an apartment or buy a car. The ideal credit score is 700 or above. If you plan to borrow money for any reason, you must have good credit to qualify.
When it comes to borrowing money, the higher your credit score, the better your rate. Good credit may help reduce the interest rate on your loans or, equally as important, may affect the amount of your auto insurance. To improve your credit, always pay your bills on time and try to pay them in full. If this is not possible, make sure to pay at least the minimum amount due. Try not to borrow or charge more than you can afford to pay off each month.
Having good credit may also impact your ability to secure employment. Some employers look into your credit to get an idea of how responsible you are.
Compare Bank Account Options
When you start out on your own, it’s a good idea to have a checking account for your day-to-day expenses and deposits as well as a savings account where you can plan for emergencies.
Checking Account
A checking account allows you to both withdraw and deposit money and should serve as your regular spending account. Funds can be accessed through online and mobile banking, debit cards, ATMs and at any BancFirst office. It’s easy to use direct deposit to have your paychecks deposited directly into your checking account by your employer. There are several types of checking accounts, so we encourage you to explore our checking account options to determine the best benefits for you.
Savings Account
Savings accounts allow you to set aside cash while earning some interest. They’re generally used to save money for a rainy day or unexpected expenses. There are several account options with various minimum balance requirements, interest rates, terms and other factors. BancFirst employees in any location can help you select the right savings account for you.
Learning how to manage your personal finances is a crucial part of building a strong financial foundation. By implementing the suggestions shared in this article, you can make informed decisions, establish healthy financial habits, and work towards achieving your long-term goals. And remember, BancFirst is here to support you every step of the way. Call on us to learn more about starting on the right foot.