Banking

Two Checking Accounts

People always ask me why I have two checking accounts with different banks. This weekend was the best example of why I do this.

Yesterday while I was driving home, I received a text message. It was from my bank saying that my Uber Eats purchase was approved. I didn’t order from Uber Eats. So, was this a spam text message or was this legit? Once home, I signed into my account and found out it was legit. Ugh!

Now on a Sunday afternoon of a holiday weekend, I am on the phone with the fraud department shutting down my debit card and disputing the charges. The debit card was still in my possession, so it wasn’t lost or stolen, but it was compromised. I always tap when using my card, so as not to deal with skimmers.

Now I wait. No debit card until the new one arrives. The money in my account is not available currently while the disputes being are researched. If I only had one checking account, I would be in trouble with minimal access to my money. All will be ok soon.

This isn’t the first time this has happened and I am sure this won’t be the last. In the meantime, I have my second checking account to use. That is why I keep two checking accounts with two different banks.

Financial Literacy Month #11

Now that you are not paying fees on your bank account, are you earning interest on your money? There are some amazing accounts (both checking and savings) with great interest rates. Shop around for the best rate without fees. #JillRussoFoster #FinancialLiteracyMonth

Financial Literacy Month #10

Are you paying fees to your bank? You should be able to bank without fees. Some banks waive the fees with a minimum balance or direct deposit. Paying a monthly fee to have a bank account is a waste of your hard-earned money. #JillRussoFoster #FinancialLiteracyMonth

Married Finances: Should Two Become One?

Weddings are an emotional celebration. We love the idea of a bride and groom starting a new life together. We use words like “two becoming one” or “sharing your lives as one,” meaning that everything will be shared as though the couple are no longer individuals. I believe this puts a lot of unnecessary sentimental pressure on a couple to share all their finances even though it’s not always necessary, or even wise, to do so for every single account or property.

So, how do you merge two separate financial lives? There are many successful ways to do this. Some couples keep their individual incomes and expenses separate by having separate bank accounts, credit cards etc. Then, they have a joint expense account for their household bills that they each put money into. Sharing the joint account can be as simple as having each person responsible for different bills, or figuring out the bill totals and having each put in their half. Some people base the joint account total on a salary percentage (this works great when one spouse earns more money that the other). And, of course, some people merge everything and all accounts are joint.

You need to think about what type of financial people you are. Here are 3 questions to think about that will help you decide (and could possibly save some financial squabbles):

Are you a saver and your spouse a spender? Having one person be the fall back for financial emergencies can be challenging financially and to the marriage.
Are you both spenders? What will happen when there are no reserves for emergencies?
How do you each handle bill payment? Are all your bills paid on time? Do you have bills that have slipped through the cracks?

Answers to these questions can be tricky, but worth the discomfort. Proactive thought can be a financial life saver for your future. Double check your answers by looking at your account statements and credit reports. You may not be as good at finances as you think you are, or you might be better than you thought. Discuss your habits with each other, as well as any outstanding issues that could affect you both.

I am a firm believer that you both should participle in your finances. You have joint goals in your future, so you should do the financial planning for this together as well. Don’t let the responsibility fall to one person. If something were to happen to the “responsible” one, then the other party would be left completely in the dark, not knowing anything about the accounts or how to deal with them. I have seen many situations like this. It may seem kind, or convenient, to handle the money if your partner doesn’t know how, but it’s not.

Whichever way you choose to handle your finances as a married couple, make sure it’s a mutual decision based on real knowledge of your habits and goals.

Who handles the finances in your relationship?

I met a woman who asked me some questions when she found out what I do for a living. This subject is one that all of you should be aware of and in honor of Valentine’s Day, I wanted to discuss joint finances. You wouldn’t believe how many people this affects.

Are you married or in a relationship with joint finances? Even when couples share accounts, living space, or property, it’s typically one person who handles the finan love and money ces in a relationship – paying the bills, savings, investing, etc. But the other person shouldn’t be left in the dark. Think about your future, I have meet many who have no clue on how their finances are handled and then something happens and they now have to take charge.

Because this is your joint future, both should know what is going on and how to access the information at any time. The definition of the word joint is defined by Merriman-Webster as “united, joined, or sharing with others”.

Both of you should be making decisions together, understanding where you are today with your money and where you want to go for the future. You should both know the names of your banks and investments and how to access these accounts, especially if you use online accounts. Think of it this way, if the person handling the finances is not able to do it – what would happen? Could you put food on the table? Would the utilities be paid to be kept on?

Remember, too, that your children can see how the money is handled in your relationship. What you do, and don’t do, shows them just as much as what you tell them.

I also believe that each person needs to establish credit in their own name and if you are listed as a co-owner on the assets you should also be listed as a co-owner on the liabilities. What that means is that if you own a home (your name is on the deed) you should also be on the mortgage.

Many partners are left out of the finances. If that’s you, and something happens to the person who handles everything, you are going to have a difficult time. You may find that the bank accounts that you thought were joint are not. You may find that you thought you owned the home you live in, but you don’t. You may find that you need to open a credit card or take out a loan and you have no credit in your name.

All this happens more times than I can count. If this describes you, then you need to have a conversation today with your partner. You need to what know what assets you have, what liabilities you owe and have a plan for moving forward to achieve your goals. The first step is having this conversation.

Simplifying With No Fees

Yesterday, I discussed consolidation out accounts. Today, let’s talk about the benefits of this move. Yes, there is a hidden benefit.

By having all our accounts at two organizations, it makes our checking account free – no monthly maintenance fee, no paper statement fee, no fee for bank checks, no fee for ATM use (even with ATM’s at other locations). Consolidating accounts makes our lives easier and no removes the possibility of any fees too!

This is added benefit!

Hopefully, your are not paying any banking fees associated with your bank accounts.

Financial Literacy Month – Tip #13

Monitor Your Accounts

Here’s the tip from July 28-Credit month:

Something that I personally do weekly is to monitor my accounts. I go online (from my home computer) and check my accounts, both bank and credit cards. I actually look at the individual transactions to see what is posted. Is there anything that I don’t recognize? Get in the habit of this and check even if you haven’t used the account. You never know who has.

To purchase a copy of either of my books Thrive In Five: Take Charge of Your Finances in 5 Minutes a Day or 111 Ways To Save

#JillRussoFoster #30WaysToSave

Is It Time To Switch Banks?

How long have you been with your bank? Is it still convenient to your life? Are you paying fees? The answer should be no to this question. Are you earning the highest interest rate out there?

Look at your answers and take a look at your finances to make the right choices for you. For us, last year we started to consolidate our accounts. Rolling over our retirement accoun

t from past employers to one account. Consolidating our accounts at two banks – one that offers totally free checking (no monthly fees, ATM fees and overdraft protection) th

at is a brick and mortar bank that is local and has convenient locations and hours that work with our lives. The other is a virtual bank that also has no

fees and pays a high interest rate of savings accounts. It simplifies the monthly statements and it’s two online accounts. That works for us.

Does yours work for you? Here’s a great article from AARP Good Reasons To Consider Changing Where You Bank that will get your thinking about the different types of banks (major bank, community bank, credit union and online bank). Which is best for you?

Automatic Transfers To Save More

savings-automatic

Have you struggled to save money because there never seems to be anything left over?Big surprise! We tend to spend the money we have in front of us. Getting a raise never seems to help, because that money disappears, too. There’s always something we think we need or want right now.

The best way to grow the money in your savings account is by setting up an automatic deposit from your paycheck. That way you never see it to spend it. If your company doesn’t offer this, that’s not a problem. Have an amount set up to be transferred automatically from your checking account to savings on a regular basis. The benefits here are that you are saving without any effort on your part and the money isn’t in your checking account to tempt you.

In addition, don’t have your saving account linked to your checking account on your ATM card. Why you ask? It’s too easy to transfer the funds without any thought. Also, you might want to have your saving account at another financial institution. You can access when you need the funds, but it isn’t that easy – so you will have time to think about withdrawing the funds.

Start to put your savings on automatic pilot today.

Make Your Money Grow

Do you have the best bank / credit union accounts? How can you tell which is best for you?

For your bank / credit union account, you want to earn the highest interest rate (paid to you) with no (or the lowest) fees. Start by looking at what you currently have – how much are you earning and paying? Once you know this information, you have a starting point. Now compare that with what other’s offer. Can you do better? Don’t forget while looking compare both local, out of state and virtual banks / credit unions. What would you have to do to eliminate all fees?

Keep in mind, that the bank and/or credit union you are looking at must (non negotiable) be FDIC (Federal Deposit Insurance Corp.) for a bank or savings and loan. Credit Unions are insurance through NCUA (National Credit Union Administration). This protects your money up to $250,000. Once you confirm this, then look at how you earn interest and what fees are involved before making your choice.

Personally, we bank both locally and virtually. We earn interest on both our checking and savings accounts with no fees and do NOT have to carry a large balance in the account to do this. So if we can do this, you can too.

Other quick tips, that may help you:

Don’t link your savings account to your ATM / Debit card
Set up automatic savings deposits with each and every paycheck (pay yourself first).

Remember, that every penny your earn or save is more money in your pocket. Those pennies add up.