NEW YORK CITY, NY / ACCESS Newswire / July 8, 2025 / Your first checking account is a great place to keep the money you use for everyday expenses, like groceries or gas. But it's also a fundamental step towards financial independence. Here are five things to know when you get your first checking account that can help you build lifelong financially healthy habits.

1. Reading the fine print is essential.

When you open a checking account, you enter into a contract with the bank. And like any contract, a checking account's fine print explains important details, such as:

• Fees. A bank might charge fees for maintaining an account, using out-of-network ATMs, spending more money than you have available, and more.

• Minimum balance requirements. Some checking accounts require you to keep a certain amount of money in the account. Drop below that amount, and you might be charged a fee.

• Interest rates.While most checking accounts don't earn interest, some do. If yours does, the fine print usually lists the interest rate and how it's calculated.

• Overdraft protection. You typically pay a fee if a transaction causes a negative balance in your account. Overdraft protection helps you avoid declined transactions, but it's not always free, so look closely at how it works and what it costs.

You can find all this information and more in a document called a deposit account agreement that banks are required to provide. The information is also typically available on a bank's website. Reading it can help you avoid surprises and choose an account that meets your needs.

2. Your current balance is not your available balance.

A checking account statement may list the available and current balances. The available balance is money you can use immediately, while the current balance may include transactions that haven't cleared, meaning they haven't officially transferred into or out of your account.

That's an important difference to know as you learn to track your money in real time. If you check your available balance before you make a withdrawal, you'll know exactly how much you can take out without risking an overdraft.

But keeping an eye on your current balance doesn't hurt either. For example, say you're thinking about making a purchase online. You check your current balance and see the car payment you made yesterday is still pending. That one quick step saved you from spending money that isn't available yet.

3. Account tools can be your best friend.

At many banks, checking accounts come with useful tools that may help you develop good money habits. For example, you may be able to use:

• Mobile and online banking. Signing up makes monitoring balances, transferring money, and tracking spending easy.

• Account alerts. Alerts for low balances and large transactions can help you catch problems early.

• Direct deposit. Getting your paycheck deposited directly into your account often means the funds are available sooner.

• Bill payments or reminders. Auto-pay and bill reminders can be a good way to get into the habit of paying bills on time.

Checking account tools like these make routine banking tasks easier, but they also help you stay organized, build financial discipline, and prevent costly mistakes.

4. A debit card is not a credit card.

Debit cards, a perk with many checking accounts, look and act like credit cards. You can use them at an ATM, make purchases online or at a store, and add them to a digital wallet.

However, there are some big differences between debit and credit cards that you want to understand. First, a debit card links to your bank account. You're not borrowing money like you are with a credit card, so your spending is limited to your available balance.

Because you're not borrowing money when you use a debit card, you're also not building a credit history. That may not be a big deal if you're young, but establishing a credit history might help you qualify for loans, rent apartments, or even get better insurance rates later.

Lastly, debit cards offer protection against unauthorized transactions, but it's sometimes more limited than credit cards. You might be liable for more of the cost if you don't report a problem quickly, so you want to monitor your account for unauthorized transactions.

5. Things may change when you turn 18 or graduate.

If you're under 18, you'll likely need a parent or guardian to open a checking account. That's not a bad thing because you get to learn financial discipline while benefiting from perks, like waived fees and lower minimum balance requirements. Many student accounts even extend these benefits through high school and college.

That can change when you turn 18 - or graduate from school. Your youth benefits may expire, and you can sometimes switch your account to a standard checking account. In some cases, the bank might switch your account over automatically.

If your parent or guardian agrees, you may be able to remove them from the account or close it and open one in your name only.

Before you make any decisions, make sure you understand what's coming. Ask your bank:

• When will my account change to a standard checking account?

• Will I be notified in advance?

• Will the new account have additional or different fees?

• Can I switch to a different account without paying an extra fee?

Planning ahead means fewer surprises and a smoother financial transition into adulthood.

Your checking account is just the beginning

Most people hope to be financially independent, and many can be. The key is practicing the good habits that get you there. When you look at your first checking account as a training ground for the future, you're on your way to long-term financial self-sufficiency.

CONTACT:
Sonakshi Murze
Manager
sonakshi.murze@iquanti.com

SOURCE: iQuanti