If you want to manage your finances effectively or if you want to do any kind of business you need to have a bank account.  More specifically you need to have a checking account.  According to a recent study by the FDIC, in 2009 22% of African Americans do not have a checking account and 32% instead used Check cashing places to cash their paychecks.  Check cashing places is basically giving your money away and getting nothing in return, as you can cash your paycheck at your bank for free.  Getting a checking account is fairly easy, but there are a few things that you need to do before you start.

The first thing you need to have is a valid ID.  This ID could be your driver’s license but if you don’t have that you can get an identification card from your local DMV.  The second thing you need is your social security card.  This is the card given to you at birth and serves as the most important non-picture ID you will ever have.  To get your social security card you can go to your local social security office.  Armed with these two basic pieces of information you are ready to open a bank account, manage your money and do business in America.

The 4 Steps to Opening a New Bank Account

1. Find a bank close to where you live.  Unfortunately there aren’t as many banks in poor urban areas as there are in middle/upper class neighborhoods so you may have to venture away from your immediate area.  Nevertheless you should be able to find a bank within 5 miles of your house.

2. Go to the bank and ask to speak to a banker about opening a checking account.  Don’t wait in line to see the people behind the glass, go to the people sitting at the desks and ask which one can help you with your new account.

3 Bring your Identification.  Make sure you have your ID, social security card and maybe a third piece of ID like a gas bill or cable bill.  A cell phone bill will not work as a secondary form of ID.

4 Let a banker set up your account. The banker will walk you through the account creation process, which will entail filling out some papers with personal information, signing those papers and presenting your valid identification.  The whole process should take no more than 30 to 45 minutes.

Note: If you are setting up a business banking account the process is virtually the same with the exception of the ID required.  If you are a sole proprietor (in business by yourself) or a corporation you will need to bring a copy of your Fictitious Business Name filing along with your Federal Taxpayer ID (or EIN) and your personal ID.