Would someone please explain to me why having a bank account is a good idea?

I am just not captivated by the idea.

I personally am more inclined to saving money the "traditional" way wherein I have my own piggy bank and put all my bills and coins there. It's practical and I won't have to go to a bank to withdraw or whatsoever.

Some people have told me that it's time for me to open up a bank account for me to buy things online if I want to or if I would want to avail loans in the future.

I personally find "loans" pathetic because I would never avail something I really cannot pay with my own money; I hate owing money to any entity.

I am not considering in opening an account but people are making it appear like it's an important thing to have as a teen.

Updates:
3mo This is when I want to pick multiple MHO's because literally ALL answers are helpful 👏
Thank you, Gag 😊

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Most Helpful Guy

  • -- you can have a bank account where you can get interest on the money in the account, so essentially you are making money for doing nothing
    -- protection of having your money insured, whereas if you lose cash it's just gone
    -- larger purchases are far easier to make with a debit card, credit card or check rather than walking to a car dealership with a suitcase full of cash
    -- employers typically prefer and some only offer direct deposit payments

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    • 3mo

      also it can be easier and cheaper to pay bills online via a linked bank account or debit/credit card or check rather than mailing in payments... and i don't know very many bill collectors who want cash mailed to them... and on top of that you dont have any receipt of the payment so if they say they didn't receive your payment you are out of luck

    • 3mo

      another factor is building credit. to make large purchases in your life you will most likely need credit (houses, cars, etc). you only build credit through having a credit card and credit card companies (at least almost all i know) don't accept cash payments

    • 3mo

      ^^ this. No point in writing all of these points out again haha

Most Helpful Girl

  • Sorry to tell you this but debt is what makes the world go round. You may have the altruistic view of not buying anything you can't pay cash for, which is admirable but improbable. If you ever want a house or new car or your own business the odds are even lower. Banks are a safe place to keep your money, insured and protected vs a piggy bank or mattress. Having an account help create relationships available you to use a debit card and write checks. (The cave company doesn't want you oating in coins through the mail) and while interests rates are currently abysmal, you do have the ability to earn something vs keeping cash in your sock drawer.

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What Guys Said 23

  • I have a regular account for daily banking, a tax free account where I stow most of my savings and then a variety of investments for retirement, education for my daughter, etc.,

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    • 3mo

      Best to start getting a line of credit established through the bank too! It will help hen it comes time for mortgages, cars etc. later on.

    • 3mo

      Oh wow
      This might explain my parents' obsession about banking

  • i have a bank account to buy stuff with online, i have a savings account because then i cannot touch my money unless i transfer it to my bank account. this prevents me from wasting money on useless things.

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  • You should have a bank account
    If you want to keep your piggy bank put your spare change in there
    and you're too young to say loans are pathetic... i think thats insulting for you to say when you dont even know what you're talking about
    But you'll understand when you go to college or lease a car or buy a house

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  • Let me phrase it to you this way.

    You're buying a property they are asking you for a 10% deposit to get a mortgage - this is comes to £12,000, do you really want that kinda of money floating around... not to mention how many piggy banks you would need for that amount of money

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  • Do you never plan to have a substantial amount of money, or own a home or pay utility bills?

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  • Having a bank account is very important. It's the safest way to save money and the most common method of payment from a job. You will also need to build up credit in the bank if you're planning on buying a house or a car. So, It's very important.

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  • you will need one sooner or later

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  • cause no serious employer nowadays will just hand you the money xD its way easier for your accounting staff to just transfer the money to ones account. i understand your hate for it. i hate giving money to the bank, cause i get literally nothing for giving them my money but if i want theirs, thei're charging usury prices to lend me theirs... still this is how the world goes today. you´re saying now that you won´t ever pay for stuff you don´t have the money for... see you in 20 years when you want to build a house or something ;) almost nobody lives without loans nowaday.

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  • I used to think like you when I was younger but as you look at the world and see how it works you realize that a bank account is necessary and loans are a necessary evil.

    Storing your money in the banks
    -allows it to gain interest
    -protects it from damage
    -allows you to make online purchases as well as pay for bills
    -is more convenient than carrying cash (you aren't going to bring a suitcase worth of bills to by a car or a house)
    -receive your salary from your employer
    -certain places do not accept cash (my university for example only accepts payment via debit)

    When it comes to loans, you will most likely not have enough money to buy a house or pay for your education. These things are necessities so unless you somehow make a lot of money or win the lottery you'll need a loan.

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  • it's safe if somebody burgles your house.

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  • Good luck with your college. It's the system.

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  • 1. It's rather risky to keep your savings at home
    2. Debit (and credit) cards are easy to use.
    3. to pay your bills, a bank account is easier than running all over town to pay cash.

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    • 3mo

      Agree with you. Having a bank account is obligatory for most of serious financial operations, it is also a good way to save money. As for the savings , I wouldn't advise to keep all your money at the same place, keep them in different forms and places. I decided to invest in gold this year ( in coins , via bullionexchanges.com/.../ ) , as it becomes only more expensive from year to year.

  • well. for starters , two things.
    your money is safe there
    and you will get interest.

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  • To get paid from your employer, earn interest and buy a house.

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  • - So the government can see how much money you make and taxes you from it.

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  • You could get interest, but it would be very little.
    I think the biggest advantage is having your money on hand with a debit card, and it is safe where no one can steal it or if you home gets on fire, the loose will be another loss. In addition if you do not see your money, you might not send as much.

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  • Don't get one. It costs money each month, people can steal your money with scanners, especially at gas stations, and you can shop online with prepaid debit cards if you want to.

    If you get a lot of money, hide most of it, like taped underneath a dresser drawer or something. Also, don't be telling your friends, even your best friends where you keep it. They may tell one of their friends, not thinking that they will rip them off.

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  • Bank accounts are linked to other banks. World banking system. I use it to transfer money into other accounts that can buy assets.

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  • To get paid from my job I have to have an account, and in addition I need it to pay rent, insurance and I get a credit card to I can shop online and not go around with big amount off cash.

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  • you probably don't need one at your age but when you get older and make more money you'll need one cuz a piggy bank isn't going to hold it all.

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  • Get a debit card, it's MUCH easier than carrying all your money around

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  • It is much more convenient. As time goes on, you will figure it out...

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  • Most employers use direct deposit so you would need a account for that

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    • 3mo

      Also money in your piggy bank isn't covered by incurance well money in the bank is covered plus a teen with thousands of dollars cash makes you look like a drug dealer

What Girls Said 11

  • Banks provide an added layer of security for your money. If someone goes into your house and steals all your money from your piggy bank, no one gets that back for you. Also I think you might be thinking more small scale, but you likely won't be able to buy a house with your own money and you'll need to take out a mortgage.

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    • 3mo

      Also savings account accumulate interest so you basically just get free money (even though it's little) for letting them hold on to it. And basically everything @madhatters4 said.

  • Because it's easier to transfer money or pay in general if you're buying something expensive.
    Like ever tried buying a grand piano and paying in cash? Because likely the police might turn up and question you about recent robberies lmao
    Savings accounts usually also pay interest so you actually get money for simply storing your money which is a great benefit.
    It's also an advantage in terms of safety of money, ever visited a safe in a bank?
    Of course, if you're a teenager with no income it's not as important to have a bank account but I personally believe the earlier you get started with these things the better. My parents made 2 bank accounts for me right after I was born.

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  • Sometimes I do worry about my money in the bank, becuase what if something happens to the bank, like it shuts down, or a mysterious load of money is missing? Also debit cards can be dangerous only becuase they can be lost, AND because people are using those 'spy' machines to copy your numbers from gas pumps, fast food, etc. It's happened to my sister twice.

    It does seem reliable to have all of your money where you reside, but as someone said, what if somebody burglarizes your house? What if your house catches on fire?

    If you'd like, keep half your savings in the bank, and half on you. My only suggestion if you want to keep it out of the bank is to build a safe box like into the wall so the robbers will have an even harder time trying to steal it. Then put a painting or picture over, and an ugly one so robbers are the least likely to go for it. Also, if the house burns down, maybe the safe will survive through it.

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  • You don't have to have one but many employers in the future may only pay via transfer. You can have it paid into someone else's bank but then they have to go to the trouble of taking the cash out for you.

    If you ever want to buy a house without saving the entire amount up in cash (which isn't the usually way people manage to get on the property ladder) you'll need a credit rating. With no account you'll get no credit rating.

    You can't do a lot of things without a credit rating, no credit rating is basically the same as bad credit.

    No mobile phone contract. Can't hire anything, like a car for example. Some utility companies don't accept people with bad credit.

    Where are you planning on living all your life? Rental properties in this country will credit check you before you can rent.

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    • 3mo

      "You don't have to have one but many employers in the future may only pay via transfer."

      Interesting.
      In the USA these laws vary by state. Here in California, it's illegal for an employer to require direct deposit payments, and any employer must have available the option of paying via a check that can be drawn on a local bank -- without fees (for employees who are "unbanked").

      __

      For someone with NO credit -- as opposed to bad credit, which is harder to fix -- it's surprisingly easy to get a good credit score.
      All you have to do is get a credit card, charge a modest sum, and make at least the minimum payment for about 6 months, which is the minimum time necessary to generate a FICO score.

      __

      "No mobile phone contract"

      ^^ There are plenty of small-time mobile operators here in the USA that offer month-to-month, prepaid no-contract plans that can be paid with cash. Several of them don't even check identification, so you can perfectly well have a "throwaway phone" that's not

    • 3mo

      connected to yr identity in any way.

      If you have enough money saved up to pay a few months' rent in advance, then lots of private landlords (not management companies) won't go to the trouble of a credit check. (Of course, I wouldn't want a few months' worth of Los Angeles rent in my mattress... omggg)

      Also, I know plenty of people who rent rooms in people's houses, or who sub-lease part of someone's apartment, just for cash. I mean... if you're paying the person who lives across the hallway, then, a lot of the time they won't bother checking yr credit.

  • The majority, if not all employers here in the UK will only use the BAC's (Bankers' Automated Clearing Services) system for paying wages/salary, so you would have to have a bank account regardless.

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    • 3mo

      You can get it paid to someone else's, I only got an account two years ago :/

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    • 3mo

      I had mine paid into my boyfriends bank account for years, you just have to authorise it and then cancel if you fall out I suppose...

    • 3mo

      @TakeMaker Gosh, well as they say, you learn something new every day. Thank you.

  • I have one and I think it's great because it keeps it safe and I can't spend it!

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  • Um if you just have a job then the government can see if you getting pay legally or not.

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  • Well here you can't get a credit or debit card if you don't have a bank account... trust me, debit cards are very useful and often life-saver in tricky situations. For example , traveling, it's much easier to use a debit card than carrying loads of cash.
    Also you can avail facility of Internet banking through which online shopping and similar transactions are made easier

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  • That.000001% interest every month

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  • Borrowing what you don't have at the moment is pathetic - is that right?

    Good luck in life, my dear.

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  • So you have savings...

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