These days, the conveniences of the Internet are well-known to nearly everyone. However, when it comes to online banking, the benefits are a lot greater than mere convenience. The various aspects involved in banking online can also help teach an array of financial skills.
Helps monitor account balances - From the convenient access of banking websites to the instant access of mobile apps, teaching monetary awareness has never been so simple. A consumer can use any of those methods to ensure that he or she has plenty of money in his or her account before making any purchases.
Helps organize bill payments - Rather than having to worry about sending out checks to the cable company on time, or running uptown to pay the water bill, you can make both of those payments from your online banking account. You also don’t need to recall all the credit card websites you’d have to visit or what your username and password are for your energy provider account —everything is in one convenient spot in the online bill pay section. Don’t get overwhelmed by the paper bills covering the kitchen table ever again.
Keeps your mind on your credit score - Although online banking won’t be able to hand you your credit score whenever you want it, it will be able to keep you vigilant about paying those bills on time and maintaining a balance in your account. This will help keep your credit score on the higher side, which is great for when you want to make a large purchase in the future.
Offers special deals - Oftentimes, financial institutions offer special rates or deals to consumers using online banking. This provides an incentive be on the lookout for great rates and never settle.
Details savings growth - With online banking, you get immediate proof of where your money is going. This is especially helpful with online statements for savings accounts, IRAs, CDs and similar products, as you can physically see how your money is growing and therefore better understand the process. Also, many financial institutions provide data and statistical breakdowns on their online statements, showing exactly how your account is growing.
Reminds you of the importance of security - Contrary to what some skeptics believe, online banking is actually very secure. There is usually a two-part sign-in process, in addition to your mobile device’s password, not to mention the many mobile text or email alerts you can sign up to receive if any suspicious activity is detected.
Many of the above skills cannot be taught in any financial literacy course. Some things just need to be learned by doing, and online banking is a great, safe way for someone to become a bit more financially educated.