Since this is the most ubiquitous financial product out there, important for students to understand how to minimize costs (especially since interest rates on checking accounts are almost non-existent!).

Answer (according to MoneyRates.com): $159  

Now, many students will find they are eligible for a no-fee checking account which waives a monthly maintenance fee until…they are no longer students.

The report notes that fees are declining slightly. This could be due to increased competition from the online banks:

The banking industry has given consumers a rare break over the past six months with lower checking account fees. The semi-annual MoneyRates Bank Fees Survey found average maintenance fees, overdraft fees and ATM fees all declined since the last survey. Some of the best checking accounts do not charge maintenance fees. Unless you change your banking habits, you may not be able to take advantage of these lower fees. A closer look shows that customers typically must bank online to benefit from these fee reductions.

This article provides educators with a good opportunity to highlight the three main costs that come with a checking account. These fees: maintenance fees, overdraft charges and non-network ATM fees need to be managed. Use this article to brainstorm tactics to avoid these fees.

Here are some great follow-up questions to ask your students about this resource:

1. How can a person avoid the three charges that lead to costs associated with a checking account?

2. Which one of the three costs do you think is the easiest for people to incur? Why?

3. Do you currently have a checking account? What has the experience been like for you so far?

Want this resource and questions in slide format to use in class? Click here!

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We teach young people about setting up account alerts here!

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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