Managing my money for young adults
Managing my money for young adults

Start this free course now. Just create an account and sign in. Enrol and complete the course for a free statement of participation or digital badge if available.

3 Why a bank account?

By the time you’re 18 it’s a good idea to have your own bank account up and running. You can open a bank account from the age of 11.

Having a bank account is a key component in learning to manage your money. For example, you’re already picking up financial management tips as you check your balance – this is what is left following the inflows and outflows of money that have already gone through your account. Get into the habit of doing this regularly. It can easily be done online.

If you have a job, your employer can pay your wages directly into your account.

It’s possible to have earnings paid into a savings account, like a post office account, but really by the age of 18, particularly if you expect to be leaving home, you need the flexibility a bank account can provide.

What other types of account exist? There are children’s savings accounts offered by banks and building societies, usually for those aged 11 to 18, and some from the age of 7.

Another form of bank account, known as a basic bank account, operates for applicants with poor credit histories – for example a record of poor debt management. With these, once money has been paid in, you can set up direct debits to cover bills and you can withdraw cash using a cash card. You can’t have an overdraft and you can’t buy things by card (no debit card). You can only spend money that you have in your account, and this stops you getting into debt without realising.

Take your learning further

Making the decision to study can be a big step, which is why you'll want a trusted University. The Open University has 50 years’ experience delivering flexible learning and 170,000 students are studying with us right now. Take a look at all Open University courses.

If you are new to University-level study, we offer two introductory routes to our qualifications. You could either choose to start with an Access module, or a module which allows you to count your previous learning towards an Open University qualification. Read our guide on Where to take your learning next for more information.

Not ready for formal University study? Then browse over 1000 free courses on OpenLearn and sign up to our newsletter to hear about new free courses as they are released.

Every year, thousands of students decide to study with The Open University. With over 120 qualifications, we’ve got the right course for you.

Request an Open University prospectus371