Course in student finances: Account Management
By creating different accounts for different purposes, you will get a better overview of your money and how it should be used.
Create multiple accounts
Start by sitting down with your online bank and create different accounts for different purposes. Then just start setting up regular deductions from your payroll account, based on the figures in your budget. Welcome order and overview!
We recommend that you create these accounts:
💳 1. Checking account
A checking account is the account you have linked to your bank card. You should only have money in this account to cover variable costs.
💰 2. Payroll account
We recommend that you have a salary account where all your income is collected. The reason why you should not receive your salary and Lånekasse payments to your checking account is simple: the temptation to spend the money immediately is reduced!
If you want a separate salary account, you can go to your online bank and create a new account. You must inform Lånekassen and your employer that you have changed your account number (so that your loan and salary are sent to the correct account).
The salary account can be used to distribute the money to the other accounts. For example, you can transfer an amount per week to your checking account based on the budget you have set. Then you will always know that you have enough money until the next paycheck arrives.
Take some time to set up different accounts for different uses. The feeling of control over your finances is the feeling of mastery!
📅 3. Account for fixed costs
A fixed cost account is a good idea! Then you know that you always have money to pay your fixed costs each month. Set up a fixed deduction of the total amount of your fixed costs from your salary account on the date your salary arrives. You do this yourself in your online bank.
🏦 4. Buffer account
A buffer account is an account you use if something has been broken and you need to buy something new, or if you suddenly need to have a wisdom tooth extracted or buy expensive medication. If you have spent more than planned one month, and therefore need a little extra to be able to buy what you need before the next loan or paycheck arrives, the buffer account can also be nice to have.
As a student, it makes sense to have a few thousand dollars in your buffer account. To save up for a buffer, it can be smart to set up micro-savings - where a small amount is transferred to the buffer account every time you withdraw money from your bank card. If necessary, set up a fixed deduction from your salary account on the day you receive your salary.
Unforeseen expenses can be an unexpected visit to the dentist or a flat tire. That's when the buffer account comes in handy!
Between 19-24 years old?
When you are between 19-24 years old and use a public dentist, you only pay 25% of the dental bill!
🤑 5. Savings account
A savings account is an account where you set aside money for savings, preferably a fixed amount that is deducted from your salary account every month. If you are saving for something special, such as a vacation, make a plan for how much you need to save each month and set up a fixed deduction.
You can create a savings account yourself in your online bank and you will typically get one to two percentage points better interest on this (a so-called high-interest account) because it is intended for long-term savings.
Think to yourself that the savings account is impossible to withdraw money from if it is not something you have actually saved up for.
🏠 6. BSU account
BSU means Boligsparing for unge (saving for housing for young people), and is a savings scheme that most banks in Norway offer to young people under the age of 34. The BSU account has a favorable interest rate and you also get a tax advantage from saving in BSU (you pay less tax), so if you want to buy a home in the future, you should consider saving in such an account.
You can save a maximum annual amount and a maximum total amount up to and including the year you turn 33. The money you save in BSU can only be used for housing.
Sparebank1 has a lot of good information about BSU savings.
In this calculation from Sparebank1, you can see how much you get in tax deductions when you save the maximum BSU amount in one year (equivalent to NOK 2,292 saved per month).