BANKING

Why is Banking Necessary?

Allows individuals, governments, and corporations to get the necessary financial support. Enables you to borrow funds at competitive interest rates. Allows borrowers to manage their cash flow. Empowers you to initiate instant money transfers and make payments remotely. Assists with high-value investments and transactions.

WATCH THIS TO LEARN MORE

This animation contains information for better understanding

B. TWO TYPES OF SETTING UP AN ACCOUNT (ONLINE AND FACE TO FACE APPLICATION)

Opening a bank account in the Philippines is an important step in managing your finances, whether you're a local, a student or just a regular person. It provides a place to secure your money and gives you an opportunity to various financial services that can make your life easier.

Setting up a bank account gives you greater independences and allows you to organize your money and access it easily. There are two options in setting up an account; online or visiting a physical bank branch.

First thing to do in setting up an account was to decide what type of bank account which suits your needs. Savings account is highly recommended type of bank accounts for students. Savings account is the common type of bank account that offers a place that is safe to deposit your money which in return, it can make you earn interest on your balance. It usually comes with low initial deposit requirement, making them a great option for young adults, students and first time account holder.

Now that you have decided what type of account suits your need, it's time to gather the requirements needed. Preparing them early will help you avoid unnecessary delays and can make the process smoother.

Here are common documents needed in opening an account;

- A valid government ID

- Proof of address

- 1-2 passport-sized photos

- Minimum deposit amount (usually made between Php 100- Php 10,000)

Now that you have your documents are ready, you can start the process of opening an account with two options; online or visiting a physical bank branch.

Here's a step-by-step process in opening an account in physical branch and online.

ONLINE APPLICATION

Learn more

FACE TO FACE APPLICATION

Learn more

Here are common documents needed in opening an account

- A valid government ID

- Proof of address

- 1-2 passport-sized photos

- Minimum deposit amount (usually made between Php 100- Php 10,000)

Now that you have your documents are ready, you can start the process of opening an account with two options; online or visiting a physical bank branch.

C. TYPES OF ACCOUNT

Three types of banking accounts suitable for youth aged 13-18 with options like BDO Junior Savers or UnionBank Youth Account, these accounts typically come without monthly fees or minimum balance requirements.

STUDENT CHECKING ACCOUNT

- These accounts are designed specifically for young people, often with features that cater to their needs. They often have lower or no monthly fees and may include features like debit cards and online banking access, which can help young people learn to manage their money. Often, for those younger than 18 a parent or guardian will need to be a joint owner on the account.

Benefits:

Financial Education:

Provides a practical way to learn about budgeting, spending, and saving.
Helps develop responsible money management habits.

Convenience:

Debit card access for easy purchases.
Online and mobile banking for account monitoring.
Direct deposit for paychecks.

Reduced Fees:

Often features low or no monthly fees, making it accessible for young people.
May have reduced ATM fees.

Safety:

Safer than carrying cash.
Fraud protection and security measures.

Building Financial History:

Starting to build a record of responsible financial behavior.

SAVING ACCOUNT

- A savings account is a fundamental tool for teaching young people the importance of saving money. These accounts allow them to deposit and earn interest on their funds, helping them build a financial foundation. Many banks offer savings accounts specifically for children and teens.

Benefits:

Cultivating Savings Habits:

Encourages the practice of setting aside money for future goals.

Earning Interest:

Allows money to grow over time through interest accrual.

Financial Security:

Provides a safe place to store money.
Helps build an emergency fund.

Goal Setting:

Can be used to save for specific targets, like a new device or college.

PREPAID DEBIT CARD

- Prepaid debit cards can be a good option for young people who are not yet ready for a traditional checking account. These cards allow them to spend only the amount of money that has been pre-loaded onto the card, which can help them learn to budget and avoid overspending. These can also be a good tool for parents to give allowances to their children.

Benefits:

Controlled Spending:

Limits spending to the amount pre-loaded on the card, preventing overspending.

Budgeting Practice:

Helps young people learn to manage a set amount of money.

Safety:

Reduces the risk of carrying large amounts of cash.
Can be used for online purchases.

Parental Control:

Some cards offer parental controls, allowing parents to monitor spending and set limits.

Learning tool:

It can be a good stepping stone to using a full checking account.

NOTE: By understanding these benefits, young people and their parents can make informed decisions about which banking accounts best suit their needs and goals.

Page updated

Google Sites

Report abuse