Living in New York teaches you that money goes quickly. Between the subway rides, snacks, random fees, it helps to know where your money is. Opening a bank account will not make New York cheaper, but it does give you something very important: control.
Types of Bank Accounts
The teller at my bank told me that most people start off with a checking account. This is the account you use for everyday expenditures and link to your direct deposit. It usually comes with a debit card, and the money is meant to go in and out. Most checking accounts connect to your phone, making it easier to pay for things, check your balance, and get alerts when your funds are low. This won’t be an issue, as most of us check our balance on our phones the way we check texts.
Savings accounts are for the money you don’t want to touch right away. Unlike a checking account, it’s not meant for daily spending. They’re better for saving toward something specific, like emergencies, college, or even the clothes sitting in your shopping cart. They earn interest, meaning your money grows a little instead of just sitting there.
A checking account doesn’t usually come with this perk and rarely earns anything because it’s meant for spending.
Basically,
- Checking – for spending, easy access, little to no interest
- Savings – for saving, harder to spend from, earns interest
If you can open both, even better.
So How Do You Actually Open One?
Since most of us are under 18, you usually need a parent or a guardian to open the account with you. That is normal. When I opened my first account two years ago, I had to bring ID, my Social Security number, and proof of address. My mom opened the account with me and brought her ID too.
Small charges add up fast, especially in New York. Before opening an account, we looked for one with no monthly maintenance fee and a low minimum balance. We also asked how overdrafts worked and turned on low balance alerts. That part matters more than you think.
You can also set up transfers from checking to savings so you save without really thinking about it.
A bank account will not make New York feel cheaper, but it will make your money clearer—and that’s a first step towards independence.
With that being said, here are some mistakes my banker told me to avoid:
- Opening an account without reading the fee details
- Forgetting to check for monthly maintenance fees
- Using random ATMs around the city and paying extra fees
- Keeping all your money in a checking account instead of saving
