Starting your first bank account is a smart move you can make before your first payday. If you’ve got a job lined up – or you’re thinking about getting one soon – having an account ready means you’ll be able to get paid without delays or last-minute stress.
Whether you’re about to earn your first wage, receive study payments, or just want a safe place to manage your money, getting set up early puts you in a strong position. In this guide, we’ll walk you through the basics – no stress, no jargon.
Why You Might Need a Bank Account
A bank account makes everyday life easier. You can:
- Get paid from a job
- Receive Centrelink or scholarship payments
- Pay for things online or in-store
- Track your spending and save money
Having your own account also sets you up to build strong money habits early on – something that becomes even more important when you start earning your own income and paying tax. If you’re new to managing money, check out these simple budgeting tips to help you manage your money for a great next step.
Debit Cards vs Credit Cards (what’s the difference?)
When you open your bank account, you’ll usually get a debit card. While credit cards are also available for people over 18, they work quite differently.
A debit card uses your own money. When you buy something, the amount comes straight out of your account. This makes it easier to stay on budget and avoid spending more than you have.
A credit card, on the other hand, lets you borrow money from the bank and pay it back later. While this can be useful in some situations, it also comes with risks like interest charges and the potential to overspend. The more you spend and not pay back, the more interest you will be charged.
For most students and first-time earners, a debit card is the better place to start. It keeps things simple, helps you build good money habits, and gives you the flexibility to pay for things almost anywhere – without getting into debt.
If you wish to make purchases online and internationally, a Visa or Mastercard debit card is a great option and dosn’t require you to be 18. The card links directly to your everyday bank account. It functions by letting you spend your own money – rather than borrowing on credit.
Types of bank accounts (what students usually choose)
Most students start with an everyday transaction account. This is used for regular spending and payments.
You might also consider:
- Savings account – A place to store money and earn interest
- Student account – Some banks offer accounts tailored for young people with fewer fees
Tip: Look for accounts with no monthly fees and free transactions.
What you need to open an account
When opening a bank account in Australia, you’ll need to prove your identity. This is called the 100-point ID check.
Common documents include:
- Passport
- Driver licence or learner permit
- Birth certificate
- Student ID (sometimes)
You may also be asked for your Tax File Number (TFN).
A TFN is your personal reference number in Australia’s tax system, and you’ll need one when you start working, studying or applying for government support.
Not sure what a TFN is or how to get one? Read Tax 101: Why it pays to learn early to understand the basics.
If you’re under 18, you may also need a parent or guardian to be involved.
How to set up a bank account (step-by-step)
1. Compare your options
Different banks offer different features. Check:
- Fees (monthly or transaction fees)
- ATM access
- Online and mobile banking options
- Interest rates for savings
2. Apply online or in person
Most banks let you apply online in minutes. Or you can visit a branch if you prefer face-to-face support.
3. Verify your identity
Upload documents online or show them in person.
4. Set up online banking
Download the bank’s app or log in via your computer to:
- Check your balance
- Transfer money
- Pay bills
5. Receive your card
Your debit card will arrive in the mail. Some banks also let you start spending straight away using your phone.
Managing your money (smart habits)
Once your account is set up, here are a few simple habits to get started:
- Track your spending – Know where your money is going
- Set a budget – Plan what you can afford each week
- Build savings – Even small amounts add up
- Use a separate savings account – This can help you avoid spending money meant for future goals
- Watch out for scams – Never share your PIN or passwords
Budgeting doesn’t need to be complicated. As Careerify explains, a budget helps you understand where your money goes and make small changes that can lead to big savings over time.
Final Thoughts
Setting up a bank account is a simple but important step toward managing your money and planning your future. Pair it with a basic budget and an understanding of tax, and you’ll be in a strong position to stay in control of your finances and avoid unnecessary stress.
Start small, build good habits, and back yourself – you’ve got this
Key takeaway
Start simple – using your own money from day one helps you stay in control, build strong habits, and avoid unnecessary debt as you begin earning.