It's our turn to shuffle around the College Money Network, and we will be featured in a guest post tomorrow at Living Almost Large - be sure to check it out, and read some of the other articles on LAL's site, she's got some great posts. One I found really interesting was on whether you should Do It Yourself (DIY) or pay someone, and how they have balanced the two.

Today, Poorer Than You has written a post for us. The topic is one that is very helpful for college students: where to keep money. There are so many choices that it can be overwhelming, especially for someone newly on their own. Stephanie breaks several options down here, for all different types of scenarios.

Where Should College Students Keep Their Money?

78% of college students work while taking classes, at least according to a brief by the American Council on Education [PDF]. Which means that more than 78% of college students have money to handle. Whether your money comes from an on-campus job, a full time career, or stuffed in birthday cards, you need to know where to put it.

Day-to-Day Spending

Money is made to be spent, and you’ve got a list of things you want and need to spend it on! For your everyday spending money, get a no-fee student checking account. Many banks offer this, although you may have to go in and ask about it if its not advertised. Choose a bank that has ATMs on campus, or locations convenient to where you spend the majority of your time.

Do not take all of your paychecks to a check-cashing place! The fees they charge are ridiculous, and they’re really not any more convenient than putting your checks in the bank. In fact, if you have the option, a checking account can be more convenient after you set up direct deposit. It’s easy: just take a blank check, write VOID across it in big, big letters, and take it to your employer to have direct deposit set up for you.

A debit card on your checking account can make it even easier and more convenient to use your checking account for everyday spending. And, if you feel you can handle the responsibility, you can also get a no-fee credit card and use it like a debit card. That is, only spend money you already have in your checking account. This will give you certain credit-card-only benefits, while also building your credit history. But do your research and be sure you can handle it before taking the big step of getting a credit card.

Short-Term Savings

You’ve got things you want to do in the next few years, and those things cost money. Whether it’s an awesome spring break trip, savings up for nice TV, or whatever fits your style, everyone has short term savings goals. If nothing else, you should be putting a little money aside for a Getting Established Fund. This is money that will pay for all the little things that come up in the six months after you graduate: suits and résumés for job interviews, security deposit for your first apartment, DMV fees if you move out of state… there are a lot of things that come up! A Getting Established Fund will help you pay for those things easily, but you’ve got to start putting money away for it now!

For short-term savings, there’s nothing like a no-fee high yield online savings account. These babies link electronically to your existing checking account, and you can move money back and forth. They offer better rates than most brick-and-mortar bank savings accounts, so your money will actually grow! Many banks offer high yield savings accounts, but my personal recommendation is ING Direct. Their rates are good, their security is top-notch, and their online interface is easy to use.

Mid-Term Savings

For those goals that are five-ten years away, you want something a little more powerful than a savings account. With a few years to grow, a good interest rate can really help you out. Goals in this category might include buying a car or a down payment on a house, or extensive travelling. For these goals, you should look into Certificates of Deposit (CDs) or an account with SmartyPig.

I prefer SmartyPig to CDs, because it has some advantages that are really key. First of all, most CDs don’t allow you to do regular deposits – you have to open up a new CD each time. SmartyPig actually requires regular automatic deposits, so you’re forced to actually save for your goal. Secondly, you can’t take the money out of a CD before it “matures” without suffering a penalty or loss of interest. With SmartyPig, you can close a goal and get your money whenever you like. SmartyPig has tools to help you visualize your goal and savings, and you can even get bonus incentives if you get your money out of the account in the form of a gift card.

Long-Term Savings

Believe it or not, someday you’ll probably want to retire, or at least have a boatload of money waiting for you! For this, a retirement account is key. But there’s a certain type of retirement account that can help you save for other goals that are 10+ years away. It’s a Roth IRA, and you can remove any contributions (but not earnings) you make at any time. A Roth IRA is a vehicle in which you can invest in the stocks, bonds, or other securities of your choice. Of course, do your homework before getting into this! A great book to get you started: The Boglehead’s Guide to Investing.

Don’t be overwhelmed by the options available for where to keep your money. Just break it down in terms of when you’ll need the money, and separate your cash from there. Remember, the worst thing you can do is do nothing, and visit a check-cashing place every two weeks. Start with a checking account and work your way up!