Get Schooled

Checking & Savings Accounts: What's the Difference?

Last updated July 13, 2022

When you go to the bank to open an account, you’ll typically have two options for the type of account you can open: checking or savings. Here's the difference between the two and why they're important to your financial future!

Before making any big financial decisions, we strongly advise you to talk to a parent/guardian or a trusted adult. They can help you make informed choices about building credit and taking on debt that can ensure your financial stability and success in the future. 

What is a checking account?

A checking account is a bank account for your everyday expenses. You can use it to make purchases and withdraw cash, have your paycheck deposited directly into it, and use it to pay bills. It’s a convenient way to quickly access your money - anytime, anywhere. Requirements for opening a checking account will vary based on the bank you choose, but keep in mind there are fees associated with a checking account - like overdraw fees - if you don’t keep an eye on it.

What is a savings account?

A savings account is a great place to save your money for both short and long-term goals. Perhaps you want to save up for a vacation or keep money stashed away for an emergency - your savings account is a great place to do that! Savings accounts are not meant for everyday spending like checking accounts; instead, they’re meant to help you put away money you don’t need to spend right away. Unlike checking accounts, many savings accounts earn interest, meaning the bank pays you money to keep your money in the bank (and who doesn’t love making free money)?

Take a screenshot or save the image below to reference when opening up a bank account:

Be sure to check out all of our FREE financial literacy resources to learn how to be a smart spender & saver! 

Any job or finance-related questions for us? Text #Jobs to 33-55-77!

Find a Job

Financial Literacy

4 Free Apps to Help You Budget
5 Podcasts To Help You Get Your Finances In Order

See the whole series

Let Get Schooled help you achieve your goals

Sign UpLog In

Related


How to Complete the FAFSA

Here's everything you need to know to complete the FAFSA!

Money Moves Teens & Young Adults Should Make

Here are seven money moves you can start making now to build financial literacy and security!

5 Tips for Teens to Practice Financial Self-Care

Have a First Job? Make Your Money Work for You

Landed your first job? Learn how to make your money work for you and work toward financial security!

Get Schooled helps young people get to college, find first jobs, and succeed in both.

About UsOur TeamBoard of DirectorsFAQ

Pursue Your Goal

©2022 Get Schooled