This month is Financial Literacy Month (who knew?!) and PerkStreet's CEO, Dan O'Malley, has 9 great tips for getting your financial house in order this month:
· DON’T use a credit card—it can actually cause you to spend more money! The average person spends 17% more using a credit card than with debit or cash.
· DO set up automatic text or e-mail alerts to keep you aware of your spending. Many banks offer some kind of alert functionality. PerkStreet allows you to enable text or e-mail alerts to let you know if your balance goes above or below a certain level—a simple step that can prevent overdrafts.
· DON’T forget that ATM fee rebates you get from your bank are taxable. Consumers need to take this into account as they weigh the benefits of various checking accounts.
· DO make a budget. Creating a budget can seem overwhelming, but free online tools like Mint make the process simple and fast, and even a quick, informal budget can help you become more aware of how you spend your money, so you can adjust where necessary.
· DON’T assume that high-interest checking accounts are the best bang for your buck. They sound great, but most consumers don’t keep nearly enough money in their checking account to make the yields worthwhile. When it comes to checking accounts, it usually makes more sense to get rewards based on what you spend, not what you save.
· DO use a free Web site like BillShrink for side-by-side comparisons of utility prices. It’s faster than finding all the prices yourself, and you just might discover a better deal!
· DO think about how your bank is spending your money. Traditional banks spend $85 billion annually on maintaining local branches—money that online banks can pass on to consumers in the form of lower fees and higher rewards.
· DO watch out for the ways banks are adjusting their practices after the CARD Act. The new law includes some great consumer protections, but some banks are adding new fees or reducing rewards programs to make up for the lost income.
· DO take it one step at a time. Managing your finances can be stressful, and like most things in life, it’s best done in manageable steps. Instead of trying to change all your habits at once, try one new thing at a time. Each healthy new habit will get you closer to having control over your finances.
We've written about PerkStreet Financial's rewards debit card in the recent past. It is worth checking out!
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