Managing personal finances effectively is essential for achieving financial stability and meeting long-term goals. Various budgeting methods offer structured ways to handle money, each tailored to different spending habits and financial objectives.

This article will explore four popular budgeting methods: the Envelope System, Zero-Based Budgeting, the Pay Yourself First approach, and Proportional Budgeting (50/30/20 rule). Each method provides unique benefits and can be implemented to suit individual needs, whether you’re looking to curb overspending, enhance savings, or align your spending with your financial goals.

Four Popular Budgeting Methods

1. Zero-based Budgeting

Zero-based budgets account for every dollar. Your income minus your expenses should equal zero. However, this doesn’t mean you want to spend every dollar. This strategy also accounts for money you save or invest.

Zero-based budgeting is excellent for those who understand their spending but want to know how much money is funding each expense. This budget also helps you see where to cut back and save more.

How the Zero-Based Budgeting System Works

1. Justification of Expenses: Unlike traditional budgeting, which often modifies the previous year’s budget to make adjustments, zero-based budgeting starts from scratch — every dollar spent needs to be justified as if the budgets were being created for the first time.
2. Identification of Needs: Departments aren’t given money just because they spent it last year. Instead, they must justify each of their expenses as necessary for operation.
3. Prioritization of Spending: Funds are allocated based on how essential the expenses are to the organization’s goals. This process forces companies to prioritize expenses, which can lead to more strategic decision-making.
4. Cost-Benefit Analysis: Each department evaluates the cost-effectiveness of different spending areas and proposes its budget based on detailed needs and benefits analyses.
5. Approval and Revision: Top management reviews the proposed budgets and adjusts them as needed to align with the organization’s financial capabilities and strategic objectives.

2. Envelope System

Envelope budgeting is choosing how much money you spend in specific categories and putting it aside in real or virtual envelopes. Each envelope contains the entire amount of money available to spend on that expense for the month.

The goal is to keep your spending in check by only spending the money in each envelope. When the envelope is empty, you shouldn’t spend any more money on that category until next month, when you refill the envelope.

How the Envelope Budgeting System Works

1. Budget Categories: You start by defining your monthly budget categories, such as groceries, entertainment, utilities, transportation, etc.
2. Envelope Preparation: You prepare an envelope for each category and label it accordingly.
3. Allocating Money: After you receive your income, you allocate a predetermined amount of cash to each envelope based on your budget plan. This amount is what you can spend for that category for the month.
4. Spending: Use the cash from the respective envelope when you need money. For example, buying groceries takes money from the “groceries” envelope.
5. Monitoring and Adjusting: Once an envelope is empty, you can’t spend any more in that category until the next budget cycle begins. If there’s money left over, it can be saved or reallocated to other categories.

Using an online budgeting app is much easier than physically putting cash into many different envelopes (safer, too). Rocket Money is the budgeting app I use to track my expenses, set reminders to pay certain bills, and build my budget. You can also use the envelope method with Rocket if you subscribe to their premium features. The cost is $4 a month (well worth it for me)

3. Pay Yourself First

Paying yourself first is precisely what it sounds like. You fund your savings and investing goals first and then fill in the rest of your budget.

If you have a trip coming up in 10 months that will cost $1,000, you start each month by allocating $100 into your travel account and allocate funds to your other savings and investing goals.

How the Pay Yourself First Budgeting System Works

1. Identify Savings Goals: Identify your financial goals, such as saving for retirement, accumulating an emergency fund, or setting aside money for a large purchase.
2. Determine Savings Amount: Decide on a specific amount or percentage of your income that you want to save. This should be based on your financial goals and what you can realistically afford while meeting your basic needs.
3. Automate Savings: Set up automatic transfers from your checking account to your savings account, investment account, or retirement fund as soon as you receive your paycheck. This ensures that the designated amount is saved before you can spend it.
4. Budget Remaining Funds: After your savings have been automatically deducted, use the remaining money to cover all other budget categories like housing, utilities, groceries, and entertainment.

4. 50/30/20 Budget

Proportional budgets look less at specific categories and more about where your money should go. The two most common ones are the 50/30/20 rule and the 80/20 rule.

How the 50/30/20 Budgeting System Works

1. Divide Income into Categories:
   • 50% Needs: This portion of your income covers essential expenses you cannot avoid, such as rent or mortgage payments, utilities, groceries, transportation, health insurance, and other debts.
   • 30% Wants: This part includes all non-essential expenses you could live without if necessary. These might include dining out, entertainment, vacations, luxury items, and other discretionary spending.
   • 20% Savings: This final portion is allocated to your financial future, including savings, investments, retirement funds, and debt repayments beyond the minimum payments included in the needs category.
2. Apply and Adjust: After categorizing your income, apply these proportions to manage your monthly finances. You can adjust the specific percentages based on your financial goals and circumstances, such as focusing on paying down debt faster or saving for a large goal.

The 80/20 budget is simple–you live on 80% of your income and save the other 20%. These are great for people wanting a less restrictive budget.

Why Should You Budget?

Budgeting helps you achieve short- and long-term financial goals. If you plan a trip for next year and use credit cards to pay for it, budgeting can help you avoid that. Every month, sock away a little for that trip, and before you know it, you’ll be able to afford it without going into debt.

Budgeting is also a critical tool for financial management, serving as a roadmap that guides individuals and businesses toward fiscal stability and success. By meticulously outlining where money should be spent and how much should be saved, budgeting helps avoid the pitfall of living paycheck to paycheck. It ensures that every dollar is allocated purposefully, helping to curb unnecessary spending and prioritize essential expenses.

This discipline is crucial for anyone aiming to achieve financial goals, whether maintaining daily operational costs, saving for a dream vacation or preparing for a comfortable retirement. Moreover, a well-planned budget can act as a financial buffer, setting aside funds for unexpected expenses and reducing the likelihood of needing to incur debt.

Tips for Successful Budgeting

Sticking to a budget can be difficult because we don’t like telling ourselves “no,” and budgeting can feel like that at first. 

When you’re struggling and want to spend money on something you don’t need, you can remind yourself, “I’m saying no now to say yes later.”

Here are some quick tips for creating and sticking to a successful, stress-free budget:

• Have a goal so that budgeting seems like a tool and not a constraint
• Be realistic and set goals that are feasible on your income
• Try different methods and find the one (or two) that works best for you
• Don’t be afraid to change your budget as your life and priorities change

Final Thought on Different Budgeting Methods

Budgeting should be a tool and not a limitation. It may be helpful to think of it as a spending plan. You’ll always have a money goal to work towards buying a home, replacing a vehicle, paying off debt, saving for a vacation, replacing broken appliances or furniture, and even paying a medical bill. The list is endless. So, the point is that you don’t want to budget and stop once you reach one goal. You want to keep going and work towards another goal on your list.

Choosing the right budgeting app and method can transform your financial life, offering a structured path to achieving your economic goals. Whether it’s the hands-on control of the Envelope System, the meticulous scrutiny of Zero-Based Budgeting, the disciplined saving of the Pay Yourself First approach, or the balanced allocation of the Proportional Budgeting method, each strategy offers unique advantages tailored to different financial needs and lifestyles.

By understanding and applying these methods, you can gain greater control over your finances, reduce financial stress, and move confidently towards a more secure and prosperous future. Remember, the best budgeting approach is one that you can stick with consistently—so choose wisely, adjust as necessary, and take that first step toward mastering your financial destiny.

The post 4 Popular Budgeting Methods – Which One Works Best for You? appeared first on Doughroller.

Even more important is sticking to and maintaining a stress-free budget. It’s not enough to create a budget one day, follow it for a few months, and then think you’re healed. A budget is an ongoing financial process that should last your entire life, and keeping it as stress-free as possible ensures it lasts a good long time.

I will outline five important things you can do when creating and using your budget to give you the best chance to keep it going.

1. Start Your Budget with Clear Goals

Define what you want to achieve with your budget, whether paying off debt, saving for a vacation, or simply ensuring you don’t spend more than you earn. Clear goals give your budget purpose and help you stay motivated.

Direction and Motivation: Whether aiming to reduce debt, save for a big purchase like a house or a car, or ensure everyday financial stability, having a defined objective helps you stay motivated. When you know what you’re working towards, making the tough decisions to restrict spending in certain areas is easier.

Measurable Outcomes: Goals make the abstract concept of “saving money” tangible and measurable. You can easily track your progress by setting specific targets (like saving $200 monthly towards an emergency fund). This provides a sense of achievement as you reach milestones and allows you to adjust your strategies if you find you’re not on track.

Prioritization of Resources: Knowing that you want to pay off $10,000 in student debt within five years can help you decide how much money to allocate to debt repayment versus other expenses. This prioritization ensures that your spending and saving patterns align with your most important financial objectives.

Decision-Making Framework: When faced with financial choices, you can refer to your goals to guide your decisions. This can be particularly helpful in avoiding unnecessary spending. For example, if your goal is to save for a vacation, this might motivate you to cook at home rather than dining out.

Long-Term Vision: Goals encourage a long-term outlook on your finances, essential for building wealth and financial security. Setting short-term (saving for holiday gifts) and long-term (retirement savings) goals ensures that your budget addresses all aspects of your financial health.

Stress Reduction Tip #1: Knowing what to do financially to meet your goals can significantly reduce stress. Uncertainty about where you stand financially often leads to anxiety; clear goals and a structured budget can alleviate this by providing a predictable path forward.

2. Always Use the Right Tools (and Apps)

Use intuitive and easy-to-use tools, such as a simple spreadsheet, a budgeting app like Rocket Money or YNAB, or a pen and paper. The less hassle you have logging your expenses and income, the more likely you are to stick with your budget.

Efficiency: The right tools can make tracking your income and expenses much more efficient. Modern budgeting tools often automate data entry and categorization, pulling information directly from your bank accounts and credit cards. This reduces the time you spend manually inputting data and minimizes errors, making the budgeting process quicker and more accurate.

My personal budgeting app of choice is Rocket Money. With Mint’s closure, I moved to Rocket Money roughly six months ago and quickly integrated all of my accounts with their platform. Connecting accounts was easy, and I pay just $4 a month for their premium service.

Customization: Everyone’s financial situation is unique, so a tool that works well for one person might not be the best choice for another. The right budgeting tools will offer customization options that allow you to tailor your budget to your specific financial goals and lifestyle. For instance, if you have variable income (like that from freelance work), you might prefer a tool that can adapt to fluctuating monthly earnings.

Real-Time Tracking and Alerts: The best budgeting apps provide real-time updates on your spending and alert you when you’re approaching your budget’s limits. This can help prevent overspending and allow you to adjust your spending on the fly, which can be useful for staying on track financially.

Insightful Reporting: Intuitive tools often have powerful analytics to help you understand your spending habits over time. They can generate reports that show trends in your expenses, savings, and other financial metrics. These insights can be invaluable for making informed decisions about your finances, allowing you to identify areas where you can cut back or need to allocate more resources.

Integration: Top-of-the-line budget software will integrate smoothly with other financial tools and platforms you use. This might include your bank, investment portfolios, or debt management tools. Integration can provide a comprehensive view of your financial health, making it easier to see the big picture and make strategic decisions.

User Experience: An intuitive and easy tool is more likely to be used consistently. If the interface is clunky or the process is too complicated, you’re less likely to keep up with your budgeting. On the other hand, a tool that fits well with your tech-savviness and personal preferences encourages regular use and can make budgeting a less daunting task.

Accessibility: What happens if you’re on vacation and alerted of a charge you didn’t make? Accessibility ensures that you can always check in on your financial status, update your budget, and make changes as needed, no matter where you are.

3. Automate Everything You Can

Set up automatic transfers to your savings account and automate bill payments where possible. Automating these processes reduces the mental load of remembering to make transfers and payments.

Consistency in Saving: Automation makes saving money effortless. By setting up automatic transfers to your savings or investment accounts, you ensure that a portion of your income is saved before you have a chance to spend it. This “pay yourself first” strategy is highly effective because it removes the temptation to skip savings in favor of unnecessary spending.

Avoiding Late Payments: Recurring bill payments can help avoid late fees and penalties associated with missed due dates. It also maintains your credit score, as on-time payments are a significant factor in its calculation. Once set up, you don’t have to remember every bill’s due date, reducing mental clutter and financial risk.

Budget Discipline: By automating your essential expenses and savings, you create a system that operates on your budget’s principles without your ongoing input. This leaves less room for impulse purchases and helps maintain your financial goals even during periods of low personal motivation.

Time Efficiency: The time you spend paying bills, transferring money to savings, and managing routine financial transactions can be used for other activities, whether productive or purely recreational. This can make the personal finance management process more efficient and less time-consuming.

Optimized Cash Flow: Automating your finances allows you to synchronize your cash inflows and outflows better. For example, scheduling bill payments shortly after your payday ensures you cover your essential expenses first. This optimization can help prevent situations where you might be short of funds when needed most.

Building Financial Resilience: When consistently saving and investing without manual intervention, you build up financial reserves and assets to support you through economic downturns or personal financial emergencies.

Stress Reduction Tip #2: Knowing your critical financial tasks are handled automatically can significantly reduce stress. You won’t have to remember due dates and transfer amounts, freeing up mental space for other more important or enjoyable tasks. This peace of mind is one of the significant hidden benefits of automation.

4. Keep Your Budget Simple

Don’t create an overly complicated budget that you can’t follow. Start with broad categories (housing, food, transport, and leisure) and adjust as necessary. This simplicity will make tracking and maintaining your budget easier without feeling overwhelmed.

Increased Likelihood of Adherence: A simple budget is easier to follow. Complicating the budgeting process with too many categories or overly detailed tracking can become overwhelming, which might deter you from sticking to it consistently. In contrast, a simple budget makes it easy to see where your money is going at a glance, encouraging regular use and adherence.

Ease of Understanding: Simplicity ensures you can quickly understand where you stand financially. When a budget is easily interpreted, you’re more likely to make informed decisions quickly. This is particularly helpful in everyday situations where you might need to make swift decisions about spending or saving.

Flexibility: When you start with a few broad categories, adjusting these is easier as your financial situation changes without overhauling the entire system. This flexibility can be especially beneficial during financial uncertainty or when you experience significant life changes (like a new job or moving to a new home).

Reduces Mental Load: Keeping the budget simple reduces the cognitive load involved in financial planning. The less time and mental energy you spend figuring out your finances, the more you can focus on other aspects of your life. This can reduce stress and make managing your money a less daunting task.

Quick Setup and Maintenance: You can often get started with just a few clicks in a budgeting app or a few entries in a spreadsheet. The ease of maintenance ensures that updating your budget doesn’t become a chore you dread but rather a quick check-in that’s part of your routine.

Facilitates Problem Identification and Solving: When your budget is simple, it’s easier to identify areas where you’re overspending or might need to cut back. Complex budgets can obscure these issues under layers of data and categories. Simplification helps highlight financial habits that may need adjustment, allowing quicker intervention.

Motivational: Seeing direct results from broad categories can motivate you to continue good financial practices. For example, seeing your savings grow in a “travel” category might encourage you to keep finding ways to save more money.

5. Review and Adjust your Budget Regularly

Your income and expenses will change over time, and so should your budget. Regularly review your monthly or quarterly budget to ensure it still fits your needs and adjust it as your financial situation changes. This flexibility can help prevent stress caused by sticking rigidly to a budget that no longer reflects your reality.

Adaptation to Changing Circumstances: Your financial situation can change due to various factors—changes in income, unforeseen expenses, new financial goals, or life events like marriage, having children, or retirement. Regular reviews allow you to adjust your budget to reflect these changes, ensuring it always aligns with your current financial reality.

Prevention of Budget Drift: Even the best-planned budgets can drift away from their intended targets over time. Regular reviews help catch this drift early. For example, spending in certain categories, like dining out or entertainment, gradually increases without conscious intent. Regular check-ins allow you to identify and correct these deviations before they become entrenched habits.

I like to stop by Cumberland Farms and pick up a coffee when I can. Last month, my budget apps showed me I purchased 18 coffees for $34, which was a dozen more than the previous month. I had no idea I was making so many trips!

Optimization of Spending: As you track your spending and review your budget, you’ll identify areas where you can save money. Perhaps certain expenses, once deemed essential, are no longer necessary, or you might find more cost-effective alternatives for services and goods you regularly use. Regular adjustments ensure that every dollar you spend is used as efficiently as possible.

Enhancement of Financial Goals: Your priorities might change over time, requiring shifts in allocating your resources. Regular budget reviews allow you to reassess your financial goals—like saving for a home, investing in education, or preparing for retirement—and adjust your spending to support these goals better.

Improvement in Financial Awareness: Consistently reviewing your budget enhances your awareness of your financial habits and tendencies. This increased awareness can lead to better financial decisions, such as avoiding impulsive purchases or recognizing the need for an emergency fund.

Encouragement of Financial Discipline: Regularly reviewing and adjusting your budget reinforces financial discipline. It becomes a routine check that holds you accountable for your financial decisions and encourages you to control your finances.

Facilitation of Long-Term Planning: With regular updates, your budget becomes a dynamic tool that manages your current financial status and helps you plan for the future. Adjusting your budget to account for long-term goals ensures that you always work towards these objectives, whether five, ten, or thirty years away.

Stress Reduction Tip #3: Keeping a regularly updated plan to reflect your financial situation can reduce stress. It provides confidence that you are on track to meet your financial goals or, if you’re off track, that you have identified this issue and are making adjustments.

Final Thought on Creating a Stress-Free Budget

Watching the money come in can be fun, but watching the money go out can be stressful. Over time, the inclination is to slowly fade out of caring until you get a credit card bill in the mail that shakes you back into budget mode. This teeter-totter of caring about your day-to-day spending continues until the day you retire, and sadly, a lack of focus can cost you hundreds of thousands of dollars.

Pay attention. You don’t have to monitor every penny that crosses your path, but you do have to stay mindful of the monthly, annual, and overall picture. A smart set-up today with very light elbow grease will keep your budget humming for years.

The post 5 Simple Ways to Keep a Stress-Free Budget appeared first on Doughroller.

A 2019 study shows less than half of college students save money from their paychecks. But that can’t be from a lack of places to save cash. We found eight of the best savings accounts for college students with no monthly fees, great savings rates, and mobile access.

Best Savings Accounts for College Students

1. SoFi Savings and Checking

Savings Account

Member FDIC

APY

%

Min. balance for APY

$0

Our Rating: 4.7

★★★★★☆

Apply Now

Details

SoFi Savings and Checking knocks it out of the park with a high-yield savings account and up to $300 bonus. SoFi debit card ATM withdrawals are fee-free within the Allpoint network.

Pros

---

• Up to $250 bonus
• High APY
• No monthly fee

Cons

---

• JP Morgan Chase majority ownership
• No branches

Monthly Fee

$0.00

FDIC Insurance

Up to $250,000

Min. Opening Balance

$0

Why it made our list

For college students, SoFi provides everything you need and more. No monthly fees, no overdraft fees, a sign-up bonus, high APY, and a full financial suite if you need more than a savings account.

What could be better

There’s very little not to like about SoFi Savings and Checking but the $300 bonus for signing up requires a $5,000 deposit. That can be high for students.

2. Ally Savings

Savings Account

Member FDIC

APY

%

Min. balance for APY

$0

Our Rating: 4.5

★★★★★☆

Apply Now

Details

Ally Bank savings account includes a debit card and competitive APY that all college students can take advantage of. No monthly fees, no minimum deposit requirement, and a full suite of other financial products.

Pros

---

• $10/mo in ATM rebates
• No monthly fees
• No overdraft fees

Cons

---

• No cash deposits
• 10 withdrawal limit

Monthly Fee

$0.00

FDIC Insurance

Up to $250,000

Min. Opening Balance

$0

Why it made our list

One of the original online-only brands, Ally keeps fees out of the equation while offering a strong APY with amazing features. The Ally app is one I’ve used a lot and it’s intuitive for teens and young adults.

What could be better

The biggest downer to Ally Savings is that cash has to be deposited into a third-party account and then transferred to your Ally Savings account.

3. Cap One 360 Performance Savings

Savings Account

Member FDIC

APY

%

Min. balance for APY

$0

Our Rating: 4.4

★★★★★☆

Apply Now

Details

Cap One Performance Savings includes a cash bonus opening offer with a strong APY and no monthly fees or costs. College students rejoice, find an in-person cafe location to ask any questions about your Performance Savings account.

Pros

---

• Cash bonus opportunity
• No monthly fees
• Cafe access

Cons

---

• No ATM debit card
• $30 outbound wire

Monthly Fee

$0.00

FDIC Insurance

Up to $250,000

Min. Opening Balance

$0

Why it made our list

With Cap One 360 Performance Savings, you’ll have the bonus opportunity, the APY, and the rare ability to speak with a banker in person. No monthly fees and no maintenance fees are an added plus.

What could be better

If you want access to ATM withdrawals, you’ll have to open a tandem checking account.

4. Varo Savings

Savings Account

Member FDIC

APY

%

Min. balance for APY

$0

Our Rating: 4.4

★★★★★☆

Apply Now

Details

Varo is a no-fee savings account with a high APY, automatic roundups, and the ability to open additional accounts to help you get through college without worrying about your finances.

Pros

---

• Excellent APY
• No monthly fees
• No minimum balance

Cons

---

• Tiered APY on high deposits
• Direct deposit is required for APY

Monthly Fee

$0.00

FDIC Insurance

Up to $250,000

Min. Opening Balance

$0

Why it made our list

Varo savings requires no minimum deposit and charges no monthly fee, NSF fee, or overdraft fees. The high APY is great for new savers who have a regular source of income.

What could be better

Varo is the first on our list to require a direct deposit to earn the % APY. Also, the first to cap the balance for high-interest.

5. Chime

Savings Account

Member FDIC

APY

%

Min. balance for APY

$0

Our Rating: 4.3

★★★★★☆

Apply Now

Details

Chime is a fintech company that offers savings accounts without any monthly maintenance fees or unexpected costs. It includes a Visa debit card with free in-network ATM withdrawals

Pros

---

• Roundup savings
• No monthly fees
• Mobile app

Cons

---

• Low APY compared to other banks
• No branches

Monthly Fee

$0.00

FDIC Insurance

Up to $250,000

Min. Opening Balance

$0

Why it made our list

Chime stands out because of its fee-free banking experience. No NSF fees, no monthly fees, no overdraft fees, and the ability to automate savings with the Chime Roundup feature.

What could be better

The biggest negative to Chime is its current savings APY. In a high-rate environment, Chime’s interest rate could be better.

6. Discover® Bank Online Savings

Savings Account

Member FDIC

APY

%

Min. balance for APY

$0

Our Rating: 4.3

★★★★★☆

Apply Now

Details

Discover Online Savings has no monthly fees, no bank check fees, no NSF fees, and no payment returned fee. Young students who are prone to making a mistake here or there won’t have to worry about getting charged for one with Discover.

Pros

---

• No NSF fees
• No monthly fees
• 24/7 US-based customer service

Cons

---

• No ATM card
• No branches

Monthly Fee

$0.00

FDIC Insurance

Up to $250,000

Min. Opening Balance

$0

Why it made our list

In addition to a no-fee platform, the best feature of Discover Online savings is that it offers 100% US-based customer service, available all day every day.

What could be better

Even though Discover does not offer an ATM card, you can open a Discover Cashback Debit account and receive one.

7. Barclays Online Savings

Savings Account

Member FDIC

APY

%

Min. balance for APY

$0

Our Rating: 4.2

★★★★★☆

Apply Now

Details

Barclays Online Savings offers a solid % APY with no monthly fees. It’s easy to set up direct deposit and make P2P transfers if you need to reimburse a friend or classmate.

Pros

---

• Competitive APY
• No monthly fees
• Savings assistant

Cons

---

• No bonus opportunity
• No branches

Monthly Fee

$0.00

FDIC Insurance

Up to $250,000

Min. Opening Balance

$0

Why it made our list

Every feature of Barclays Online Savings is solid, including the APY and fee structure. Customer service is available via a toll-free number and students have access to a savings assistant to help create savings goals.

What could be better

Barclays Online Savings does everything well but it does not dazzle with a standout feature.

8. Marcus Online Savings Account

Savings Account

Member FDIC

APY

%

Min. balance for APY

$0

Our Rating: 4.2

★★★★★☆

Apply Now

Details

Marcus Online Savings by Goldman Sachs is a high-yield account with no fees. Marcus also offers investment opportunities and personal loans if you require more than just a savings vessel.

Pros

---

• No minimum balance
• Free wires
• Marcus Insight assistant

Cons

---

• No mobile check deposit
• No ATM network

Monthly Fee

$0.00

FDIC Insurance

Up to $250,000

Min. Opening Balance

$0

Why it made our list

While unusual for a college student, Marcus is the only bank on our list to offer free incoming and outgoing wire transfers. This paired with a high savings APY makes it a uniquely attractive savings account.

What could be better

There’s no ATM network with Marcus, so your savings account will need a third-party account to receive cash and make cash deposits.

How to Monitor Your Savings Account

The easiest way to keep tabs on your savings account is by using the mobile app, which all of the options we’ve shown you today have. Savings accounts don’t necessarily require a lot of activity on your part, especially if you set up direct deposits or roundups. It can also be helpful to set up automated alerts for your savings account, which will send you a text, email, or push notification when certain things happen to your account. For example, you can get alerts when you get a direct deposit, or when your balance drops below a certain amount. 

Paper or electronic statements can help you monitor the transactions on your account, which can help you analyze your saving habits; however, for convenience, you will probably want to opt for the mobile app. 

Why College Students Should Open a Savings Account

Even if you’re not working, it’s a good idea to open a savings account as a student for several reasons. First, it can be beneficial in the future to have a longstanding relationship with a bank or a credit union, which you establish by having open accounts over several years. A lengthy relationship with a bank may help you access capital or other financial products in the future. 

Second, even contributing a little bit can make a big difference in your financial future, largely due to a tool called compound interest, which is the interest you earn on a principal balance in addition to your interest earned. It means the more you save, the more you earn. Because of this snowball effect, starting your savings early, even if it’s not much, can make thousands of dollars of difference. 

Say, for example, at age twenty, you begin saving with an initial investment of $100. Throughout school and the rest of your career, you are able to contribute $25 per month to your savings account with an APY of 0.11% (the national average a the time of this writing). By the time you are sixty years old, you will have saved nearly $13,000. Conversely, if you save the same amount starting at age thirty, by the age of sixty, you’ll have less than $10,000. These are conservative numbers – a small initial investment and a manageable monthly contribution. But those ten years make a few thousand dollars worth of difference. No one expects college students to put away hundreds of dollars every month, but building small habits makes more of a difference than you may think.

What To Look For in a Savings Account

There are a few features to look for in a savings account, most of which are featured in all of our recommendations above. No fees are a huge plus, especially as a student when you may not have a steady and consistent stream of money coming in. You don’t want to be charged for using or accessing your own money. For the same reasons, you don’t want an account that requires you to have a high minimum deposit or maintain a high minimum balance. For obvious reasons, you want to look for the highest APY you can find – the higher the APY, the more interest you earn on your money, and the faster your interest compounds. 

Lastly, consider accessibility and ease. While you shouldn’t be aiming to make a lot of withdrawals or transactions from your savings account, you don’t want to have to jump through hoops to access your own money. Look for well-rated mobile apps and accounts that give you access to a good amount of convenient ATMs. It’s also not a bad idea to open a savings account where you hold your checking account to help you keep things organized. 

What Do You Need to Open a Savings Account?

To open a savings account on your own, you need to be at least eighteen years old, though your parent or guardian can help you open an account when you’re younger, and you may be grandfathered in when you turn eighteen.

You also need some form of identification, such as a driver’s license or state ID, birth certificate, social security card, or passport. You will also need to show proof of your address in the form of a driver’s license or state ID, lease agreement, utility bill, credit card, or bank statement (if you already have another bank account). If you are a student and opening a student account, you will likely need proof of acceptance at your school or a school ID. 

None of the accounts we have discussed above require a minimum deposit to open; however, it’s a good idea to open an account when you have at least a few dollars to put in. You’ll at least be earning some interest, and some accounts will require you to eventually deposit to prevent your account from closing. 

Final Thoughts 

Starting to save, even in college, is not impossible, and it’s a good move if you can do it. The 5-10 years you may gain from starting in your early twenties can make thousands of dollars worth of difference by the time you are ready to retire.

It can seem intimidating at first and feel pointless if you’re not able to contribute hundreds every month, but putting away what you can will help you build habits for when you do have a little more money. Start your research with our recommendations, but ultimately, make the decision that’s best for you. 

The post The 8 Best Savings Accounts for College Students in 2024 appeared first on Doughroller.

That’s an important consideration with any budgeting app, not just Buxfer. There are scores of budgeting apps available, but the one that will work best is the one that comes closest to matching your own financial style and personal preferences. Buxfer may prove to be the right budgeting app for you.

What is the Buxfer App?

Based in Santa Clara, California, Buxfer is a comprehensive budgeting app that allows you to aggregate all your financial accounts and create budgets. It also lets you forecast your financial situation and better prepare yourself for the best outcome. The company began operations in 2006, so it’s been around long enough to pass the test of time.

One of the factors that sets Buxter apart from the competition is its international focus. The app is available to users in over 150 countries and has over 100 currencies. Buxfer supports syncing with more than 20,000 financial institutions.

The Buxfer app has the following third-party and user ratings:

• Better Business Bureau: N/A
• Trustpilot: 2.8 out of 5 stars (“Average”) based on ten reviews
• The App Store: 3.4 out of 5 stars based on five reviews
• Google Play: 3.5 out of 5 stars based on 751 reviews

Buxfer App Features & Benefits

Buxfer provides the following features, showing that this app does much more than basic budgeting. Exactly which features you can access will depend on your chosen plan (see Pricing below).

Budgeting

Buxfer uses an envelope budgeting method, enabling you to set aside a fixed amount for sporadic expenses. You can also make flat monthly payments toward variable expenses and regular contributions toward major purchases. The budgeting feature lets you set weekly, monthly, or annual spending limits and receive real-time alerts if you overspend in any category.

Insights

Buxfer provides visual tools to help you understand your finances and where they are going. For example, it provides a timeline to compare income and expenses with the previous period and spot major variations. A “Top Movers” feature also shows spending categories with the largest changes.

Forecasting

This feature estimates future income, spending, and financial account balances based on past spending habits, upcoming transactions, and established budgets.

Investments

Buxfer enables you to include all investment accounts on the dashboard, including brokerage and retirement accounts. It can even provide detailed information, like data on individual investments, periodic performance, and asset allocation analysis.

Retirement Planner

This feature helps you create a financial plan that will allow you to retire comfortably, purchase a house, and prepare for your children’s education. The planner will forecast your net worth over time and incorporate variables like inflation, investment returns, and taxes.

Rules

This is another feature that makes Buxfer unique among the best budgeting apps. The software provided is designed to assist you in managing your finances, but not to take over the job completely. Though the app automatically tags and categorizes expenses, you’re also given the ability to make manual adjustments to fine-tune the process.

Currencies

If your financial profile includes an international mix, Buxfer can track those accounts in local currencies. Even though you can set specific currencies for individual accounts, Buxfer will report your financial totals in your default currency.

Access Control

You can share your Buxfer account with family members and professionals, like your financial advisor or accountant.

Automatic Backups

Your account data is automatically saved to a storage service each night. You can choose popular storage services, like Google Drive, Microsoft OneDrive, or Dropbox.

Uploading Statements

If your financial institution is unavailable with the Buxfer app, you can update information manually or upload statements directly. Buxfer also allows you to enter historical data from Quicken, MS Money, Mint.com, YNAB, Empower, and similar services.

IOUs

This novel feature lets you track small, informal debts with family and friends. For example, it allows you to account for cash contributed toward meals and entertainment or shared housing expenses.

Mobile App

Buxfer is available for download on The App Store for iPhone (iOS 11.0 or later), iPad (iPadOS 11.0 or later), iPod touch (iOS 11.0 or later), Mac (with macOS 11.0 or later and a Mac with Apple M1 chip or later), and Apple Vision (vision 1.0 or later). It is also available on Google Play for Android devices.

Security

Buxfer uses high-grade 256-bit encryption to store sensitive information and provide secure communications with your computer. The infrastructure is compliant with industry standards, like PCI and SOC3. The company also provides daily scans and audits from independent security firms, which monitor ports, network vulnerability, and web application vulnerability.

Login information is stored by sync providers Yodlee and SaltEdge, two of the leading providers in the field. While Buxfer can access your financial information, it cannot move money in or out or even between accounts.

Customer Service

Customer service is offered by email only (support@buxfer.com). No phone service is offered.

Pricing

Buxfer offers three different plan levels, each with its monthly fee:

Buxfer does not offer a free trial, but if you upgrade and cancel within the first month, you will get a full refund of the fee you paid. If you sign up for an annual plan, you can cancel the service and be refunded for the unused payment portion.

At this time, Buxfer is not offering a sign-up bonus.

How to Sign Up with the Buxfer App

You can sign up for Buxfer on the company website, Google Play for Android devices, or The App Store for iOS devices.

Whichever method you choose, you will be asked to enter your email and create a password. Alternatively, you can sign up with Google, Facebook, or Apple.

Once you sign up for an account, you can enter your accounts on the dashboard. You can add checking and savings accounts, investments, retirement plans, credit cards, the value of your house, and any cash you have on hand. Once you sync your financial accounts with Buxfer, balances, and activity will update automatically.

You can sign up for Buxfer for free but must choose one of the three plans to continue using the app.

Pros & Cons

Pros

• Available in more than 150 countries, including more than 100 currencies.
• It offers three plans, enabling users to select the one that best suits their financial situations.
• Reasonably priced, with plans ranging from $3.99 to $11.99 per month.
• Provides automatic syncing of financial account activity.

Cons

• There is no free trial period.
• Customer contact is by email only, and no phone support is provided.

Buxfer App Alternatives

YNAB (You Need A Budget)

One of the most popular budgeting apps, YNAB uses a unique “Four Rule” approach to budgeting. Loosely, 1) each dollar in your budget is assigned an expense category, 2) you will anticipate large, occasional expenses, 3) you’ll build flexibility into your budget, and 4) you’ll “age your money.”

Number 4 gradually moves you into a position where you pay this month’s bills with last month’s money. In other words, you will be one month ahead of your expenses, ending the paycheck-to-paycheck treadmill. YNAB is available with a monthly fee of $14.99 or an annual payment of $99 (the equivalent of $8.25 per month).

Read our YNAB Review

Empower

Empower is a financial account aggregator that provides a platform for linking all your financial accounts in one place. This includes bank accounts, investment accounts, loans, and credit cards. The financial dashboard is free of charge and provides valuable financial tools, like Investment Checkups and the Retirement Planner.

It also offers Empower Personal Cash, a savings account currently paying 4.70% APY on balances up to $5 million, with no fees. The service also offers investment accounts, managed portfolios, and wealth management services, each with its specific pricing schedule.

Read our Empower Review

EveryDollar

EveryDollar is a budgeting app offered by Dave Ramsey’s Ramsey Solutions. It claims it can save you $395 – “hiding in plain sight”—and cut your monthly budget by 9%. EveryDollar starts by offering you a budget template that you can customize to match your financial situation better. You’ll add your income and expenses (as you spend), then categorize them to ensure you stay on budget.

The free version provides a customizable budget and savings funds. The Premium plan is available for $17.99 per month or $79 per year. It adds direct bank connectivity, a financial roadmap, paycheck planning, goal setting, group financial coaching, and much more.

Read our EveryDollar Review

Frequently Asked Questions (FAQ)

Should You Sign Up for the Buxfer App?

There’s little doubt Buxfer is one of the most comprehensive budgeting apps. It goes beyond basic budgeting and provides financial management assistance. Given the modest pricing structure, Buxfer is worth the money, regardless of your three plans.

That’s both the strength and weakness of this app. Buxfer is a more advanced app than most other budgeting services, which may be more than you seek. For example, the alternatives presented in this review may be more user-friendly than Buxfer, especially if you are all looking for budgeting assistance. But if you want budgeting but also want to move beyond and into financial management, Buxfer can be an excellent choice.

Buxfer

Kevin Mercandante

Features

Mobile App

Pricing and Fees

Account Integration

Security and Customer Service

Summary

Buxfer combines many of the features of other budgeting apps into a low-cost, easy-to-use interface. It’s retirement planner sets the app apart from others.

4.4

Create a Budget with Buxfer

The post Buxfer Review 2024 – The Most Comprehensive Budgeting App appeared first on Doughroller.

By doing so, you can enjoy regular access to portions of your funds, mitigate the risks associated with interest rate fluctuations, and potentially earn higher returns than investing in a single CD. In this article, we’ll show you how to build a CD ladder and provide you with an example, helping you to maximize your earnings while maintaining liquidity to meet your short-term financial needs.

How To Build a CD Ladder

To get started in building your CD ladder you’ll need to ask yourself four simple questions.

1. How much money do you want to invest?
2. How much time do you want to put in between each CD’s maturity date?
3. How do you want to split your investment?
4. How soon do you want your first CD to mature?

To help you answer these questions, let’s have a look at a simple example. We’ll assume you have $25,000 to invest, you want CDs that mature one year apart, and you want to spread your investment evenly across each CD. So for this example, we’ll divide the investment into $5,000 increments, invested in one, two, three, four, and five-year CDs.

At the end of the first year, the 1-year CD matures. You can either take the money and the interest earned or reinvest it into another 5-year CD to keep the ladder going.

In the second year, your 2-year CD matures, and you can do the same—either cash out or reinvest in another 5-year CD.

This process continues each year, providing you with either a source of funds or an opportunity to reinvest and extend your CD ladder. By doing this, you are not only ensuring that a portion of your investment becomes available each year but also benefiting from the typical high yields that CDs can offer.

Where To Build Your CD Ladder

There are a lot of online banks offering high yields on CDs and while you may not have heard of many of them, most everyone carries standard FDIC insurance so you know your money is safe. I’ve selected five CDs of different terms that all offer a terrific interest rate to get you started but you can also search through the best CD rates to find a brand or CD that is tailored to your needs.

One-Year CD from BMO Alto

Certificate of Deposit

Member FDIC

APY

%

Term

12 Months

Min. Deposit

$0

Our Rating: 4.8

★★★★★☆

Apply Now

Details

Pros

---

• No fees
• Excellent rate
• No minimum deposit

Cons

---

• Early withdrawal penalty

Early Withdrawal Penalty

6 months of simple interest

Min. Opening Balance

$0

Why it made our list

BMO offers one of the highest APYs available for a 12-month CD. Without a deposit requirement or a minimum balance, deposits can be any size, up to the $250,000 FDIC-insured maximum.

What could be better

Make sure your deposit is liquid enough so you don’t have to close your CD early. Doing so incurs a 6-month simple interest penalty, which will wipe out most of your gains.

Two-Year CD from Skyla Credit Union

Certificate of Deposit

Member NCUA

APY

%

Term

24 Months

Min. Deposit

$500

Our Rating: 4.5

★★★★★☆

Apply Now

Details

Pros

---

• No fees
• Excellent rate

Cons

---

• Early withdrawal penalty
• $500 deposit requirement

Early Withdrawal Penalty

2% of principal

Min. Opening Balance

$500

Why it made our list

The 2-year CD from Skyla Credit Union offers a high interest rate and low deposit requirement. If you have at least $50,000 to deposit, you can open a jumbo CD for an even higher rate.

What could be better

When you close your CD early, Skyla charges a 2% of principal withdrawal fee. This means you could leave the bank with less money than you started. Bottom line, try to avoid closing your CD early.

Three-Year CD from Alliant Credit Union

Certificate of Deposit

Member NCUA

APY

%

Term

36 Months

Min. Deposit

$1,000

Our Rating: 4.6

★★★★★☆

Apply Now

Details

Pros

---

• No fees
• Excellent rate

Cons

---

• Early withdrawal penalty
• $2,500 deposit requirement

Early Withdrawal Penalty

180 days of simple interest

Min. Opening Balance

$1,000

Why it made our list

Alliant Credit Union combines a strong interest rate with a low early withdrawal penalty. If you’re looking for a strong credit card, Alliant CU also provides a variety of cash back credit cards with highly competitive cash back rates.

What could be better

Even though it might not sound like a lot, the $1,000 minimum deposit requirement can be a hurdle for some customers.

Four-Year CD from Discover® CD

Certificate of Deposit

Member FDIC

APY

%

Term

48 Months

Min. Deposit

$2,500

Our Rating: 4.6

★★★★★☆

Apply Now

Details

Pros

---

• No fees
• Excellent rate

Cons

---

• Early withdrawal penalty
• $2,500 deposit requirement

Early Withdrawal Penalty

9 months of simple interest

Min. Opening Balance

$2,500

Why it made our list

Discover has one of the best reputations around and their 4-year CD offers a strong return. Discover also has checking, savings and IRA products to expand your portfolio.

What could be better

When opening a 4-year CD with Discover, be mindful of the $2,500 deposit requirement AND the loss of 6 months of simple interest if you can’t complete the 3-year term.

Five-Year CD from Ally

Certificate of Deposit

Member FDIC

APY

%

Term

60 Months

Min. Deposit

$1

Our Rating: 4.3

★★★★★☆

Apply Now

Details

Pros

---

• No fees
• Excellent rate
• $1 minimum deposit

Cons

---

• Early withdrawal penalty

Early Withdrawal Penalty

150 days of simple interest

Min. Opening Balance

$1

Why it made our list

Ally Bank is one of the best online banks around offering terrific customer service and a high return rate on all of their CDs. The 5-year CD rate is strong and the 150 days of simple interest penalty is one of the best around.

What could be better

Even though the interest rate is in the top 5% of all banks, it’s on the lower end in our best 5-year CDs list.

Advantages of Building a CD Ladder

There are a lot of benefits to building a CD ladder and too few consumers use CDs to diversify their investments. Here are five excellent reasons you should start a CD ladder today:

1. Improved Liquidity and Access to Funds: One of the significant advantages of a CD ladder is that it provides periodic access to a portion of your funds. Since the CDs in a ladder mature at different times, you won’t have to wait until the end of a long term to access all your money. This structure is especially beneficial for those who might need cash at various points but still want to earn more interest than a regular savings account would offer.
2. Higher Interest Rates with Reduced Risk: Typically, longer-term CDs offer higher interest rates than shorter-term CDs. By including some longer-term CDs in your ladder, you can benefit from these higher rates. At the same time, you’re not exposing all your investment to the risk of locking in at a potentially lower rate, as you would with a single long-term CD, especially in a fluctuating interest rate environment.
3. Flexibility in Adapting to Interest Rate Changes: A CD ladder offers the flexibility to take advantage of rising interest rates. As each CD matures, you have the option to reinvest the funds in a new CD, potentially at a higher rate if interest rates have increased. This flexibility allows you to adapt your investment strategy to changing economic conditions more effectively than if you were locked into a single long-term CD.
4. Safety and Security: CDs are considered safe investments because they are typically insured by the FDIC (Federal Deposit Insurance Corporation) up to certain limits. This insurance protects your principal investment against bank failures. Therefore, a CD ladder can provide a secure way to grow your savings with minimal risk.
5. Simplified Financial Planning and Goal Alignment: Building a CD ladder can be an effective way to align your investment strategy with your financial goals. For instance, you can time the maturity of your CDs to coincide with future financial needs, like funding a child’s education or a significant purchase. This planning can simplify budgeting and ensure that funds are available when needed, without the temptation or penalties of early withdrawal from a single, long-term CD.

Frequently Asked Questions (FAQ)

Final Thought on Why You Should Build a CD Ladder

Creating a CD ladder is a strategic move for those seeking a balanced approach to saving and investing. It elegantly navigates the trade-off between higher interest earnings and the need for liquidity. By staggering the maturity of CDs, investors can access funds periodically without sacrificing the higher interest rates typically offered by longer-term CDs.

This technique also offers a buffer against interest rate fluctuations, ensuring a more stable and predictable income stream. Whether you are planning for short-term goals or building a nest egg for the future, a CD ladder is a versatile tool that caters to a wide range of financial needs, making it a valuable addition to any prudent investor’s portfolio.

The post How to Build a CD Ladder in 4 Easy Steps appeared first on Doughroller.

But how does it work, and is Copper Banking the right choice for your family? Find out more about this financial app in our review.

What is Copper Banking?

Copper is similar to any banking app you might use for your child. It issues free, kid-friendly debit cards and offers features like parental controls, spending limits, and direct deposits for pay or allowance. But Copper has some unique benefits and perks that you may not find with other debit cards for kids.

First, Copper mainly focuses on promoting financial education for kids and parents. On the mobile app, kids have access to features that teach financial literacy and money management, features that they might not get with another kid-friendly debit card. Parents also have access to a linked account for helping to guide their children’s decisions and to monitor activity.

In addition, Copper also allows kids to pay peers for things like food and outings. Parents can also auto-reload once their kid’s account dips below a certain level. Even better, Copper offers investment portfolios designed for young investors, helping them develop smart investing habits early.

How Copper Works

A Copper account works much as any other personal checking account would. With a Copper bank account, teens can deposit funds, spend those funds via cash apps or a debit card transaction, or pay friends with the P2P feature. The Copper card can be used anywhere Mastercard is accepted.

The difference is that a teen’s Copper account will have critical insights and educational tools to help guide their savings, spending, and investing decisions. It’s a great way for kids who are just starting to learn about money, all the way up to teens who have established spending and saving habits, and even those who are just starting to dip their toes into the world of investing their money. Copper also has a direct deposit option for teens who are already in the workforce.

Seems like a lot of freedom for your kid? The Copper app offers a fair amount of parental control. The app is connected to a parental account so parents can quickly deposit funds, monitor activity, and learn where their child’s financial education lacks and improve it. Parents can also block access to certain vendors, such as those with inappropriate content.

Copper Banking Review of Features

Copper goes well beyond the standard checking account and free debit cards and it’s why we think Copper is one of the best savings apps for kids. But what exactly does it offer both kids and parents? Copper’s features include:

Debit card

Copper’s kid-friendly debit card gives kids (mostly) free range to spend online or in-store.

The Copper card can be used to make online or in-store purchases, via cash apps like Venmo, or to withdraw cash from one of the 55,000 fee-free ATMs within Copper’s network.

Savings goals

When teens open a Copper account, the primary goal isn’t just to get debit cards in their hands. They should be learning how to save money, not just spend it.

That’s where Copper shines. Rather than blindly dropping coins in a piggy bank or saving until they feel like spending, Copper Banking helps kids set up their savings goals, they’ll earn between 2-5% rewards on their savings up to $5,000, though it’s worth noting that this is entirely different than Copper’s checking APY, which is very low, at 0.01%.

Additionally, the RoundUps feature takes the change from any purchase and automatically deposits it into their savings account.

Transaction alerts

Parents can easily set up alerts and receive a notification whenever their teen spends money, ideal for parents concerned about their teen’s spending or those who want to have timely conversations about their teen’s spending habits.

After all, a discussion about a purchase that appears weeks later on an account statement won’t have the same effect as discussing a purchase in real time.

Easy transfers

While nearly 75% of kids in the U.S. earn an allowance, it can be tough to follow through in today’s cash-free age. But if your child has a Copper bank account, parents can quickly transfer money through their linked checking account.

These account-to-account transfers are fast and fee-free, making funding your child’s account easy and straightforward. And that allowance can be spent or go directly to their savings goals, another plus.

Educational resources

Putting cash in your child’s account and then watching them blow through funds can be nerve-wracking for parents. But Copper aims to stop these bad spending habits before they start, giving teens and parents access to a library of financial literacy resources.

They’ll learn about budgeting, saving, investing, credit, and earning money via the site’s library of guides. Plus, Copper Corner gives your kid access to a financial advisor in their pocket… er, phone, for those interested in the investing option via Copper. This opens the door to meaningful financial conversations between you and your child.

Direct deposit

If your teen is earning money via their first job, Copper can help streamline the process. Set up direct deposit via the app, and say goodbye to last-minute trips to the bank to cash a freshly-cut check.

Then teens can manage their earnings. Via the Copper app, they can keep tabs on exactly how much they have, what they’ve spent, and what they’ve (hopefully) saved.

Teens can also get paid up to two days early with Copper, and automatically set aside a percentage of their check toward their savings or long-term goals.

Instant money transfers

Your child calls you. They’re out of gas and don’t have money. How will you help get them what they need to get home safely? This is just one situation in which being able to instantly transfer funds is more than a convenience — it’s a necessity.

Connect your checking account to your child’s Copper app and you’ll not only have access to your child’s account, you’ll also be able to send them money in seconds, though you may have to pay a fee. With just a few taps on a screen, you can get funds to your child, though there could be fees associated with this.

Account protection

Don’t let your teen’s financial journey hit a snag when someone discovers how to hack into their checking fund. With Mastercard’s zero liability protection, your child’s money is safe from unfriendly characters.

If any fraud occurs on their card, any unauthorized transactions are refunded. This is crucial to kids who may have their entire life savings in the app and need the surety from their bank that their money will be there for them.

Additionally, money with Copper is FDIC-insured up to $250,000 per depositor through their partner bank, Evolve Bank & Trust

No minimum balance requirements

This one is a must for kids just learning to manage their funds. Copper has no minimum deposit or balance. Kids and parents can make the best decisions for their finances — or let their kids make their own money mistakes— rather than worrying about meeting the bank’s minimums.

Or need to let the checking fund sit untouched for a while? That’s no problem.

Spending and deposit limits

While Copper lets kids and teens have a certain amount of freedom when it comes to their money, that doesn’t come without limits.

Copper has a $500 daily deposit limit, a $2,000 monthly deposit limit, and a $2,000 daily spending or transfer limit. Necessary? No, but ideal for parental peace of mind. 

Prices and fees

Copper costs $4.95/month for the basic banking features, while Copper + Invest is $7.95/month.

The standard package includes 2% earnings on savings, financial education, a Copper debit card, smart savings with Divvy and RoundUps, instant P2P transfers, safety features and spending monitoring notifications, zero liability protection, and customer support. Opt for the invest package and you’ll get all that, plus 5% earnings on savings, priority customer service, and of course, an investing option for kids.

Worth noting—with Copper, there is no minimum balance, no overdraft fees, and no credit checks. However, there are a few fees you’ll need to be aware of. Cash reloads can be charged up to $4.95/per load, and debit reloads pay a fee of 2.5%, plus $0.30 per transaction.

Signing up for a Copper Account

It’s simple to open a Copper account. Simply download the Copper app and create a parental account. You’ll verify your information, register your child as an authorized user, and fund the account. Either wait for your debit card to show up via mail or use the app’s virtual debit card and you’re ready to go.

You can link up to five users under your parental account. The app often has referral bonuses, so see if your friend has a referral code for you before you sign up completely.

Security

In addition to zero liability protection, Copper is FDIC-insured up to $250,000 per depositor through their partner bank, Evolve Bank & Trust. They’re also SIPC Insured up to $500,000. Copper also encrypts your data and keeps your data private and secure.

Accessibility

To manage your Copper account, you’ll need the Copper Banking mobile app. There you can transfer funds, monitor activity for checking accounts, make P2P payments, and access educational materials.

The mobile app is user-friendly, making it easy for parents to monitor and manage teen accounts, and for teens to manage their funds, keep track of their spending, or manage their investment portfolio, if they’ve opted for banking and investing.

Customer support

Copper has many ways you can find the help you need. Start with the site’s FAQ section to see if your question can be answered there. Or, ask other Copper users via the user community.

If you still need help, reach out to Copper directly via the app. It’s worth noting that while both Copper Banking and Copper Banking + Invest offer customer service, the latter offers priority customer service.

Pros and Cons

Pros

• Opening a Copper account is easy: Nearly everything you want to do can be accessed via the Copper app. Sign-up is simple, the mobile app is user-friendly, and the app has loads of information to explore. Plus, we all know teens live on their phones. Copper makes it easier for them to manage their money there, too.
• Emphasis on financial education: Even if financial literacy is taught in your child’s school, it likely won’t make the impression it needs to make a positive difference in how they handle finances. The best way to learn is through frequent, hands-on experiences. Copper does just that. Between the app’s articles, guides, and quizzes kids and teens alike will quickly learn what it means to manage money.
• Automation, automation, automation: With Copper, you’ll never have to worry about giving your child their allowance again. With automated, recurring payments, you can transfer their allowance each week via the app. This way, teens always have what they’re expecting and they can meet their savings goals based on their “income.”
• Parental controls and monitoring: With Copper, you can regularly monitor exactly how your child is spending money. This way, you know how best to approach their financial education. Parents can also set daily and weekly spending limits, another plus.
• Includes an investment option: With Copper Banking + Invest, your budding investing can start building a portfolio designed for young investors, and start developing good investing habits.

Cons

• Some fees: Cash reloads can be charged up to $4.95/per load, and debit reloads pay a fee of 2.5%, plus $0.30 per transaction.
• Low APY:  Copper’s checking APY is just 0.001%. So if your teen is looking to focus on savings and a higher interest yield, this may not be the right choice.
• Spending and funding limits: Copper has a $500 daily deposit limit, a $2,000 monthly deposit limit, and a $2,000 daily spending or transfer limit. This means that, as a parent, you can only deposit so much from your linked bank account per day. While this is not often a problem, it may become a source of frustration if you’re regularly trying to make deposits in your child’s account.
• Limited customer service: If you’re having trouble with your Copper account, you’ll likely want to get it ironed out right away. Unfortunately, Copper’s customer service is a bit limited, and you’ll likely be chatting with a bot or waiting back from an email inquiry.

Who is Copper Best For?

Copper is meant for teens and kids ages 6 to 17. Copper banking is perfect for kids who need easier access to funds. This could be teens working who would benefit from the direct deposit feature or those who get an allowance from their parents.

But it’s also a game-changer for parents who aren’t sure how to teach their children how to manage money or determine savings goals. With Cheat Codes from Copper Banking, parents have access to videos going over key points that everyone should understand about finances.

Alternatives to Copper Banking

If Copper isn’t right for you or your teen, there are other options for you and your teen.

Capital One 360 MONEY

The Capital One 360 MONEY teen checking account is a solid choice. Parents have their own linked accounts, which means they can keep an eye on what their teen is spending while enjoying the freedom of their “own” bank account and debit card. This option also boasts no monthly service fees, or balance requirements, a plus for teens just starting out with money.

Greenlight

If you have younger kids, consider Greenlight. Kids will love the app’s personalized debit card, while parents will appreciate the app’s flexible controls and real-time notifications of their kid’s spending. Other perks include earning up to 5% on savings, direct deposit (and chores, a parent’s dream!) 1% cash back, and even an option for investing.

Frequently Asked Questions (FAQ)

The Bottom Line

Opening a bank account for your child can be nerve-wracking, especially if they don’t have experience with budgeting or managing their money. But it doesn’t have to be.

Tools like Copper can help parents keep tabs on their kid’s spending, while kids and teens can enjoy the freedom and perks of their bank account. Think of financial education resources, P2P paying options, an option for investing, and even direct deposits. Allowances sure have come a long way.

Copper Banking

Rachel Morgan Cautero

User Features

Savings Rate

Customer Service

Costs and Fees

Mobile App

Summary

Copper Banking is a perfect fit for getting your teen ready to manage their own money. The fees are low and the amount of educational content is very high.

4.2

Download the Copper Banking App

The post Copper Banking Review 2024 – Teaching Teens Financial Responsibility appeared first on Doughroller.

If you’re trying to follow the Dave Ramsey style of zero-based budgeting, EveryDollar may be the budgeting app you need. This tool says you can create a budget in less than 10 minutes, and it’s free to use. Here’s the scoop on what EveryDollar offers and why it might be the budgeting tool you’ve been looking for.

How Does EveryDollar Work?

If you’ve ever heard the basics of Dave Ramsey’s Financial Peace University plan, you know that budgeting is about giving “every dollar a job.” That’s what this app, which Ramsey’s company designed, aims to do.

With EveryDollar, you’ll start by entering your monthly income. Then EveryDollar gives you a customizable template for budgeting your monthly expenses, and you can add the categories that make sense for your spending plan. You’ll enter your expenses as you spend, categorize them, and make sure you stay under budget or see where you go above budget.

EveryDollar also features some dashboard-style views so you can get an at-a-glance look at your overall spending and each budget category.

EveryDollar Pricing

The basic version of this app is free. That said, it requires you to input your transactions manually which can be an extreme hassle if you’re someone who spends a lot of money on everyday purchases.

Sometimes, though, this can be a good thing if you’re getting started with budgeting. Something is empowering and awakening about entering all of your spending as you do it. It can help you see how much money you’re spending before you overspend.

If you want to import transactions directly from your bank account, you’ll have to pay for EveryDollar Premium. You can sign up for a 14-day free trial, but after that, the service costs $79 per year or $17.99 per month if you want to pay month to month (Ramsey is banking on you seeing the value in an annual subscription).

EveryDollar Features and Benefits

EveryDollar features a simple-to-use interface and a budget you can customize. It also has apps available for Apple and Android, so you can enter expenses from everywhere. That makes it a good option for a combined budgeting app with your spouse or partner, too. You can each use the app to enter expenses as you spend money.

EveryDollar can also sync to your bank account and automatically import your transactions from your bank or credit card statements. This additional option also comes with priority support.

Signing Up

Getting started with EveryDollar is as easy as giving them your email address and password to create an account. Then you can start creating your budget.

However, if you want to sync to your bank account, you’ll need to sign up for the free trial and then connect the app to your bank account. You log into your bank account through the app so that EveryDollar can pull in your transactions.

Getting started with your actual budget could take a bit longer. EveryDollar says you can create a budget in ten minutes. And you probably can if you have a pretty simple, streamlined budget. But if you have a more complex budget, it could take longer to create your budget. But that’s really about how well you know your income and expenses and how many budget categories you’re likely to set up.

Synchronization

If you sign up for EveryDollar Plus, your app will sync with your bank account and pull transactions in real time. Then you can log in to categorize your transactions as you go.

Regardless of which version you use, though, your budget and inputs will always be synced across your laptop/desktop and your phone or multiple phones. Again, it’s a great option to use if you want to budget along with someone else since you can both install the apps and enter your spending in real time.

Security

As with many budgeting apps, EveryDollar uses data encryption techniques and has a multi-factor authentication system in place. It also has a data center where individuals are on site all the time to ensure the physical security of the data stored on EveryDollar’s servers.

Mobile Accessibility

EveryDollar has an app available for both Android and Apple. These apps are intuitive and easy to use, and you can do everything on the app that you can do on your laptop or desktop. The apps sync to the desktop/laptop version, as well, so you have access to your spending data from anywhere.

• Download the App for Apple
• Download the App for Android

Customer Support

EveryDollar has online customer support available and an FAQ section that tackles everyday questions. During normal business hours, you can ask a chatbot your question and if you’re not satisfied with the response, you can request an agent.

You also can submit a ticket at any time and the typical response time is 48 business hours. Unfortunately, EveryDollar does not offer phone support.

EveryDollar Pros and Cons

Pros

• Zero-based budgeting — If you’ve been out of control of your money, a true zero-based budget that gives every dollar in your budget a job is a great way to get back on track. Since it operates off of this principle, EveryDollar is a great way to go.
• Flexible budget — Some budgeting apps come with preset categories that may or may not make sense to you. With EveryDollar, you can create the exact categories that make sense to you.
• Mobile app — These days, having a mobile app on your budgeting tool is almost essential. You can manage your entire budget from your phone.
• Good interface — EveryDollar is easy to use and intuitive, and it has a nice-looking interface. I love having a snapshot of my budgets and overall spending, as well, and theirs is very nice.

Cons

• Pay for syncing to bank — To sync the app to your bank account, you have to pay $99 per year, which is fairly expensive.
• No investment tracking — EveryDollar is specifically for budgeting and doesn’t include access to investment tracking or other advanced tools that some other budgeting apps offer.
• Zero-based budgeting — This is both a pro and a con. Zero-based budgeting is great if you have a steady paycheck each month. But it’s a tougher model if you have a variable income, and EveryDollar isn’t set up well to deal with that.

EveryDollar Alternatives

There are a lot of high-quality budget apps that you may want to try other than EveryDollar. My personal two favorites are Rocket Money and YNAB.

Rocket Money

Rocket Money is a budgeting app that does everything extremely well. From setting up your budgets and receiving automated alerts to intuitive suggestions on how to improve and lower your everyday bills, Rockey Money is the budgeting app I’m currently using.

The cost for Rocket money is FREE if you use a limited set of features. If however, you’d like to know where you can reduce your subscription costs and have Rocket Money help do that for you, the monthly fee is between $4 and $12. Rocket Money offers the “pay what you want” model for your monthly charge but unlike some other brands that offer this model, they’ve set the floor at $4 (not $0).

Read our Rocket Money Review

YNAB

YNAB is similar to EveryDollar in that it uses the zero-based budgeting method to keep your finances in check. YNAB has created a system that follows “four rules” and if your budget can comply, chances are you’ll come out of using YNAB with a much healthier financial profile.

1. Give Every Dollar a Job
2. Embrace Your True Expenses
3. Roll With the Punches
4. Age Your Money

YNAB offers a 34-day free trial so creating an account and setting up your initial budget is risk-free. After the trial expires, the ongoing cost is $99 annually or $8.25 per month.

Read our YNAB Review

EveryDollar Frequently Asked Questions (FAQ)

Should You Sign Up for EveryDollar?

If you’re relatively new to the world of budgeting and want a simple, straightforward budgeting tool, EveryDollar is a great option. If you’re brand new to tracking your spending at all, it can be a great way to start with the free app where you have to manually enter your transactions. That takes more time, but it also puts you in closer touch with what you’re spending regularly.

EveryDollar is a basic, un-flashy budgeting tool, but it gives you the ability to budget flexibly and is very simple and easy to use. If you want a tool without extra bells and whistles but that gives you nice dashboards and mobile access, this is a great option to try.

EveryDollar

Michael Pruser

Features

Mobile App

Pricing and Fees

Account Integration

Security and Customer Service

Summary

EveryDollar is perfect for beginners who aren’t looking to spend money each month to create a simple budget that can help them improve their finances.

3.9

Create A Budget with EveryDollar

The post EveryDollar Budget App Review 2024 – Does Dave Ramsey Do It Right? appeared first on Doughroller.

Simplifi offers four different plan levels so you can choose the one that best fits your financial profile. Each is available at a surprisingly low monthly fee.

What is Simplifi?

Simplifi is designed to do exactly what the name implies, to simplify your financial life. It does this by aggregating all your financial accounts – savings and checking accounts, credit cards, loans, and investment accounts – on the same platform. This will give you a high-altitude view of your finances, as well as the ability to track income and spending, reduce expenses, and increase funds flowing into savings.

The service also provides real-time alerts, projected cash flows, and insightful reports to help you make better decisions with your money. While Simplifi offers only the above services, Quicken also offers their Deluxe, Premier, and Business & Personal plans to provide more assistance with investments, retirement, running your small business, and even managing rental properties.

With all the services provided by Simplifi and the Quicken family, the company charges surprisingly low monthly fees for the four plans they offer. Each also comes with a 30-day money-back guarantee, allowing you to test out the app before making it a permanent part of your financial repertoire.

Simplifi, which is included in the Quicken profile, has a Better Business Bureau rating of F on a scale of A+ to F. It also has 4.0 out of five stars from more than 2,100 iOS users on The App Store, and 2.8 out of five stars from more than 1,300 Android users on Google Play.

Simplifi Features & Benefits

Simplifi offers financial capabilities that are as comprehensive as you need them to be, though the number of features you’ll have access to will depend on the specific plan you select.

Simplifi Spending Plan

Simplifi enables you to choose different budget plans. It starts by analyzing your income and expenses, then it generates a personalized spending plan. You can choose the budgeting plan that will be used – 50-30-20, zero-based budgeting, envelope budgeting, and more.

The Spending Plan will automatically calculate how much you have left to spend each day of the month. You’ll have the ability to add any planned spending, such as holidays and vacations. You can even exclude spending categories you don’t want included in your budget. Finally, you can add savings goals to your budget.

You can use the app to reduce or pay off your debts. This can be done by determining which debts you want to pay off, setting a timeline, and making the necessary adjustments to your budget.

The app can be used to reach savings goals, including building a safety net, by setting automatic transfers into savings after finding areas in your budget where you can reduce expenses.

Investment management

This capability is available only with Quicken Premier and Quicken Business & Personal. You’ll be able to assemble all your investment accounts on the app, find new investment opportunities, track your progress, and more. Either plan comes with access to Morningstar’s Portfolio X-ray tool, helping you to analyze mutual funds and exchange-traded funds (ETFs). Armed with that information, you’ll be able to make better and more informed investment choices.

Calculators

Along with your subscription to Simplifi you’ll also have access to valuable calculators. They include a budget calculator, 401(k) calculator, retirement calculator, and even a vacation calculator.

The Simplifi Retirement Calculator.

Other Quicken Plans

If you’re looking for a more comprehensive financial app, Quicken offers Quicken Deluxe, Quicken Premier, and Quicken Business & Personal.

• Quicken Deluxe provides more detailed financial tools than you can get with Simplifi. It’s designed to help you manage and reduce debt, build a secure retirement, create multiple budgets, and make tax filing easier.
• Quicken Premier offers the same features and benefits of Quicken Deluxe but also includes best-in-class investing tools, built-in tax reports, reconciliation tools, and the ability to track and pay bills through Quicken. However, be aware that Premier is designed for personal finances, not for rental properties or your business. In addition, your year-end tax information can be exported either to TurboTax or to your accountant.

For retirement purposes, Premier offers its Lifetime Planner, as well as a comprehensive view of your entire investment portfolio. You’ll also have access to Morningstar’s Portfolio X-ray tool, enabling you to better evaluate holdings in ETFs and mutual funds.

• Quicken Business & Personal is Quicken’s most comprehensive plan, featuring all benefits available in both the Deluxe and Premier plans, plus business and rental activities. It’s designed to help you manage your business, as well as rental properties, alongside your finances. It will help you keep your financial documents organized, prepare financial statements for your business, and optimize your situation for income tax preparation.

On the business side, it can provide profit and loss and cash flow statements, balance sheets, and even reports for Schedules C and E for your income tax return. If you have rental properties it can help you to manage tenants, process payments, pay expenses, maintain lease terms, and keep track of tenant deposits.

Perhaps best of all, Quicken Business & Personal automatically separates your finances from your business finances.

Other Simplifi Features

Availability: Can be downloaded free of charge at The App Store for iOS devices (13.4 and higher), and at Google Play for Android devices.

Account security: Quicken protects user information by using 256-bit encryption to securely transmit data from your financial institutions into the app. Other security measures include integrity checks, firewall-protected servers, the option to password-protect your data files, and passwords issued by your financial institutions that must be entered each time the app accesses those accounts.

Customer service: Available by chat and community support, seven days per week, 5:00 AM to 5:00 PM, Pacific time. Indirect phone support is available. You will need to enter your phone number and choose “Call Me” from the Help Center widget. If a representative is unavailable, or if it’s outside business hours, you can leave a voicemail and a representative will get back to you as soon as possible.

Simplifi Pricing

Quicken has the following price levels for each of the four plans it offers:

1. Simplifi: per month (was $3.99 per month).
2. Quicken Deluxe: $4.97 per month (was $5.99 per month).
3. Quicken Premier: $5.99 per month (was $7.99 a month).
4. Quicken Business & Personal: $6.59 per month (was $10.99 per month)

All plans are available with a risk-free 30-day trial.

Simplifi Pros & Cons

Pros

• Comprehensive financial dashboard where you can aggregate all your savings, investment, spending, and debt-related accounts in one place.
• Offers four different plans, each designed for a specific financial profile, and at reasonable monthly payments.
• Because all plans offered charge monthly fees, there are no ads to distract the user experience.
• Simplifi is provided by Quicken, which is one of the best-known and well-established financial product providers in the industry.
• 30-day money-back guarantee on all four plans.

Cons

• Does not offer a free version as some of its competitors do.
• Phone contact is based on a call-back arrangement; there is no direct phone access to customer service.
• Better Business Bureau rating of F.

Simplifi Alternatives

If Simplifi isn’t the right financial app for you, consider one of the following alternatives:

Rocket Money

Rocket Money is one of the most comprehensive financial apps available. Part of the Rocket family that includes Rocket Mortgage, Rocket Money offers a Visa credit card with unique cash-back rewards. If you are looking to purchase a home, you can earn 5% rewards which can be applied toward the down payment – up to $10,000 – as long as the mortgage will be taken through Rocket Mortgage.

If you already have a loan with Rocket Mortgage, you can earn 2% cash back, which will be applied toward the payoff of your mortgage. Rocket Money also offers budgeting, bill negotiation, subscription cancellation, and other services.

Read our Rocket Money Review

YNAB

YNAB is an excellent choice if you are primarily concerned with budgeting. The company claims the average user saves $600 in just the first two months, and $6,000 in the first year. YNAB accomplishes this by changing your attitude toward money.

That includes a four-step process, in which you become highly intentional about how you spend money. It emphasizes preparation, flexibility, and moving your finances to where you are one month ahead of your budget. YNAB is offered at $14.99 per month, or $99 if paid annually. Either payment plan comes with a 34-day free trial.

Read our YNAB Review

Empower

Empower is a better choice if you’re looking for a financial app that also adds investing to the mix. At the core, Empower is a free financial aggregator where you can link all your financial accounts in one place.

They offer investment-related tools, such as their Retirement Planner and Investment Checkups. With various fee structures, they also offer self-directed investment accounts, managed portfolios, IRAs, and wealth management. You can also take advantage of the Empower Personal Cash account currently paying 4.70% APY on FDIC-insured balances up to $5 million, with no fees and unlimited transfers.

Read our Empower Review

Frequently Asked Questions (FAQ)

Should You Sign Up for Simplifi?

If you’re looking to improve your finances, whether that’s simply implementing a budget or paying off debt, and/or building savings, Simplifi can be the best you’ll spend in any given month. If you’re also looking to get help with managing your investments, you can take advantage of Quicken Premier. And if you have a small business or rental property, Quicken Business & Personal can handle every corner of your financial world.

If you’ve been struggling to get your finances under control and to create a better future for you and your family, Simplifi offers an excellent program. It may not be free to use, but at per month, it comes attractively close.

Simplifi

Kevin Mercandante

Features

Mobile App

Pricing and Fees

Account Integration

Security and Customer Service

Summary

Simplifi is a low-cost budgeting app that offers consumers everything they need to create a budget, receive alerts, track spending, and improve their finances.

4.5

Create A Budget with Simplifi

The post Simplifi Review 2024 – The Quality of Quicken at a Lower Cost appeared first on Doughroller.

In 2021, consumers paid $7.7 billion in overdraft and non-sufficient funds fees. This doesn’t include other miscellaneous fees banks charge. Even $5 here and there might seem small but adds up. 

Avoiding bank fees isn’t difficult to do. Here are 9 bank fees to look out for and how to avoid paying them.

9 Common Bank Fees and How to Avoid Them

1. Monthly Fee or Maintenance Fee

A monthly maintenance fee is a fee banks charge to offset their costs of providing services. Banks charge the fee automatically, withdrawing it from your account each month.

You’ll often see a maintenance fee on checking accounts (personal and business). However, some banks also charge maintenance fees on savings accounts. Read the fine print before signing up. Ask the bank if the account you want has a monthly maintenance fee. 

On average, banks charge $5 – $15 per month as a maintenance fee. The cost varies by bank and what services they provide. Fortunately, there are ways to avoid paying a monthly fee.

How to Avoid Paying a Monthly Fee

The easiest way to avoid paying a monthly fee is to find a bank that doesn’t charge the fee. You can find several options in our list of the best checking accounts and in you’ll also find accounts that don’t charge a lot of other common fees.

If you don’t want to switch banks, you might be able to waive the monthly fee by doing one or more of the following:

• Meet the minimum average daily balance requirement
• Receive the minimum direct deposit amount required to waive the fee
• Have a combined balance in other accounts at the same bank that meets the bank’s requirements

Each bank has different requirements. Ask a bank representative and read the account disclosures before signing up for an account to see how you can waive account fees. 

2. Overdraft or Insufficient Funds Fees

Spending more money than you have in your account is an overdraft, and banks charge for it. They don’t only charge once either. If you continue spending money you don’t have, banks can charge you an overdraft fee for every purchase.

Overdraft fees vary by bank, but on average, they cost $35 per overdraft. The fees continue until you bring your account balance up. However, there may be a limit on how much a bank will charge per day. 

To bring your account current, you must add enough funds to cover the amount you overspent. Plus, the overdraft fees. If you don’t, the bank will withdraw the amount owed from your next deposit.

Even if you have overdraft protection, you may still pay a fee. An overdraft protection fee can charge you for transferring funds from another account, such as your savings account. Plus, overdraft protection only covers debit card one-time purchases and ATM transactions. Checks and recurring transactions may still go through, incurring overdraft charges.

How to Avoid Paying Overdraft Fees

Fortunately, it’s easy to avoid paying overdraft fees. It comes down to watching your budget and balancing your checking account regularly. You’ll also want to start using a budgeting app to keep track of your finances.

Many banks also allow you to set up low balance alerts, which let you know funds are low. Again, overdraft protection can still cost you money so be careful. The absolute best way to avoid incurring an NSF fee is to use a bank that does not charge overdraft fees.

3. ATM Fee

Most banks charge a fee to use the ATM if you use any outside their network. Fortunately, most banks have a large network. Still, if you don’t pay attention and use a non-network ATM, you could pay between $2.50 – $5 per transaction. Transactions include withdrawals, deposits, and even balance inquiries.

Some banks reimburse you for ATM fees up to a certain limit.

How to Avoid Paying ATM Fees

The easiest way to avoid paying ATM fees is to only use in-network ATMs. If your bank doesn’t have a large enough network, consider switching banks to have one with a larger ATM network. Better yet, find a bank that doesn’t charge any ATM fees or reimburses you for them, so you don’t have to worry about it.

TD Bank has a Beyond Checking Account that offers unlimited ATM fee reimbursements when you maintain a daily balance of at least $2,500 (which waives the monthly fee too). They also offer a limited-time $300 bonus for new customers so it’s a one-stop shop for saving and making money.

Other ways to avoid ATM fees include:

• Pay with a check instead of using cash
• Use a payment app like Zelle, Venmo, or the Cash App

4. Fee for Cashing a Bad Check

Cashing a bad check has many negative consequences. First, you’ll likely owe your bank a bad check fee to cover the cost of the bank returning the check. Next, if you spend the money, you might overdraft your account, resulting in overdraft fees.

Every bank charges different fees. But you could pay as much as $35 for cashing a bad check, even if you are not the one at fault.

How to Avoid Paying a Fee for Cashing a Bad Check

Avoiding a fee for cashing a bad check is easier than it seems. First, always make sure your checks are from a trusted source. If you aren’t sure, don’t accept a check – only cash.

No matter where the check is from, don’t spend the money until the check clears. You’ll see the difference when you log into your bank account. The deposit will show pending until the check clears. Wait until you know it’s cleared to spend the money to avoid more fees.

5. Wire Transfer Fee

A wire transfer is when you send money from one bank to another. It can be a costly way to send money, but it’s quick. It’s common during real estate transactions and sending money abroad.

You’ll typically pay to send and receive wired funds. Domestic outgoing wires can cost around $25. International outgoing wires can cost around $49. But they could cost more or less depending on the bank. 

Your bank can also charge a small fee of around $15 to receive domestic and international wires.

How to Avoid Paying a Wire Transfer Fee

To avoid wire transfer fees, you typically need to find other ways to send the money. However, if you send wires often, consider opening an account that doesn’t charge for wires. For example, a Fidelity Cash Management account.

If you’re paying friends or family, you could use a payment app instead, such as PayPal, Cash App, Zelle, or Venmo.

If you still need to send a wire, use a service like Wise rather than your bank. You’ll save money on the fees and still get the service you need.

6. Foreign Transaction Fees

Foreign transaction fees are fees banks charge when you use your debit or credit card abroad. You might also pay a foreign transaction fee for purchasing from a foreign company, even if you’re in the United States.

Foreign transaction fees vary by bank, but they typically charge 1% – 3% of the total cost on average. If you aren’t sure if you’ll have to pay this fee, first find out where the company is from before you order. Then read the fine print on your credit card agreement. 

How to Avoid Paying Foreign Transaction Fees

If you travel often, it pays to find a credit card that doesn’t charge foreign transaction fees. Here’s a list of our favorite travel credit cards, many with no foreign transaction fees. As a rule, all Capital One cards are foreign transaction fee-free, so they’re a good place to start.

If you use your debit card abroad often, consider opening a Chime account. Chime doesn’t charge foreign transaction fees or monthly account fees, for that matter. So you can spend how you want without worrying.

7. Paper Statement Fee

The paper statement fee is a sneaky fee many people don’t realize they’re paying. It’s a fee banks charge if you want a statement mailed to you each month. Or if you go into the bank and ask for a paper statement.

Banks can charge anywhere from $0 – $6 per month for paper statement fees. Plus extra fees if you order additional or archived statements.

How to Avoid Paying a Paper Statement Fee

To avoid paying a paper statement fee, opt out of paper statements with your bank. Some banks ask you to opt in if you want paper statements. Others automatically enroll you to receive paper statements unless you opt-out.

Instead of paper statements, you can receive them online. From there, you can either print them yourself or save them to your computer for access later.

You can also use an online bank that doesn’t offer paper statements. Here’s a list of our favorite online banks.

8. Inactivity Fee

Many banks charge inactivity fees or dormancy fees if you don’t use your account for an extended period. How long you can go without paying a fee varies by bank. Always read the fine print before you open an account.

Inactivity fees can start as soon as a couple of months. If you have an account you know you won’t use, you’re better off closing it to avoid the fees. 

Each bank is different, but on average, banks charge $5 to $15 per month for inactivity.

How to Avoid Paying an Inactivity Fee

To avoid paying an inactivity fee, make it a habit to conduct at least one transaction each month. It’s best to set up an auto-transfer or direct deposit so you don’t forget. Or make sure you deposit or withdraw money at least once a month.

If you don’t need the account, close it and transfer your funds to a high yield savings account instead.

9. Early Account Closure Fee

Some banks have a minimum amount of time your account must be open. If you close the account before the required date, you might have to pay a fee. On average, banks charge $25 – $35 if you close your bank account early. When you open the account, a bank should disclose how long you must keep it open to avoid this charge.

How to Avoid Paying an Early Account Closure Fee

Always ask before opening a bank account if you must have the account for a certain amount of time. You should also do this if you open a bank account that pays a bonus, as most banks pay the bonus to keep your account open. If you can’t keep the account open for as long as they request, don’t open the account.

Frequently Asked Questions (FAQ)

Final Thoughts

You don’t have to pay unnecessary bank fees. Know what your bank charges and for what, and do what you can to avoid it. If you find that you’re paying excessive fees, it’s time to get a new bank account. Changing banks isn’t as difficult as it might sound. And the time you spend changing your bank will be worth it when you see how much money you save.

The post The 9 Most Common Bank Fees and How to Avoid Them appeared first on Doughroller.

Brigit is an app that offers to help users avoid falling into the overdraft trap. It can also help improve your finances through cash advances, credit building, and budgeting. But at $9.99 per month, is it worth it? Here’s our full review.

What Is Brigit?

Brigit is well established on the financial technology scene, founded in 2017, and backed by celebrity investors Ashton Kutcher and Kevin Durant. While Brigit reports saving their users over $435 million dollars in fees since they launched, this isn’t their only mission. The app aims to give everyday Americans an entire, holistic financial makeover with the following features:

• Cash advance: Brigit users may qualify for a zero-interest, no-fee cash advance from $50 to $250. There are also auto-advances to keep your bank account from being overdrawn. 
• Credit building: A strong credit score is key to opening the doors of favorable interest rates on vehicles, mortgages, and most loans. We’ll tell you how Brigit’s credit-building account works below.
• Budgeting: For those of us who dread sorting through spreadsheets to confront our budget, Brigit makes it simple. Your expenses are broken down into graph form, separated into categories, and presented in percentages. The visuals are easy to digest, and you get a quick view of where you’re overspending. The app even recognizes patterns in your spending month to month and lets you know when you’re noticeably overspending in a certain category compared with previous behavior.
• Find jobs: When you boost your income, you create more opportunities for saving and paying off debt. Brigit connects its subscribers to money-making opportunities, from signing up for DoorDash Delivery to completing online surveys. 

How Does Brigit Work?

After downloading Brigit, you’ll be asked to connect your U.S.-based bank account. The app prompts are easy and quick to follow, and your sensitive information is protected by 256-bit encryption. In just a few minutes, Brigit

• Review your deposit and expense history
• Programs predictions and alerts for low account balance
• Calculates the amount of cash advance they can offer 

Immediately Brigit has the capability to let you know if you’re in danger of overdrafting your account. However, an instant cash advance won’t be so instant for everyone. 

Some Brigit users may qualify for an instant cash advance upon signing up, in an amount based on their Brigit score. These users likely have a simple income setup, where a single employer pays them on a predictable basis. For others who have many streams of income, cash advance qualification could come later, or not at all. Thirty-three percent of Brigit users qualify within 30 days, and the Brigit app updates your qualification status daily. 

The Brigit Score and Cash Advances

Once qualified, you get a Brigit score from 40 to 100. This score determines how much cash advance you can get from $50 to a maximum of $250. The Brigit score is a composite number that reflects your financial health based on the following:

• Bank account health: the age of your bank account, frequency of use, and average balance
• Earnings profile: size of deposits, frequency of deposits, and history of deposits from a single employer
• Spending behavior: income to expense ratio and history of on-time bill payments

Next, you can request and receive cash instantly. And by instantly, we mean in about 20 minutes. To access cash this quickly, you’ll need to link your debit card. Without a linked card, an ACH transfer can deposit the cash advance into your bank account in one to three business days. 

Your advance comes with no fees, no interest, and there’s no voluntary “tip” feature other cash advance apps “encourage” their borrowers to use as a thank you. But you are on the hook for the $9.99 monthly app subscription fee. 

Paying Back the Advance

Brigit selects a repayment date based on your pattern of receiving income deposits and automatically withdraws the advance amount on that date. You’ll receive a reminder two days before your repayment date, and you can always pay back your advance manually within the app beforehand. You can only take out one cash advance at a time. Once your repayment has been processed, you’re eligible to receive another advance. 

Brigit Credit Builder Account

Where other cash advance apps have a singular focus on getting you an advance before payday, Brigit differs in offering a way to improve your credit. We’ll go further into the pricing below, but we do feel you need to make use of all of Brigit’s services, including this one, for the app to be worth the price.

When I checked out the credit builder feature, Brigit offered me a $600 installment loan to improve my less-than-perfect credit score. When opening a credit-builder account, you have the option to choose how much you want to pay monthly toward this loan from your regular checking account, anywhere from $1 to $25, over a 24-month period. 

I selected $10. My $10 monthly payment goes into a locked credit-building account for the next two years. Brigit takes the rest of the monthly payments from the credit building loan and reports my regular payments to the credit bureaus. At the end of two years, I receive my deposits back ($240) into my regular checking account, making this feature an effective savings option while also building credit.  

How Much Does Brigit Cost?

The free version offers bare-bones budgeting oversight and account monitoring features.

For $9.99 per month, you gain access to the Brigit Plus features:

• No-fee, instant cash advances
• Auto advances to help protect you from overdrafts
• Access to your credit report
• Identity theft protection insurance
• Flexible repayment plans: If you can’t pay back your advance on the repayment date, then you can use an extension credit to pay it back later with no late fees attached. 
• Earn extra: These are income-boosting opportunities that generally fall into food delivery and online survey categories. 
• Finance helper: This feature goes beyond a simple spending habit breakdown and provides past, current, and future financial outcomes based on your income and spending habits. 
• Credit builder (Premium ONLY) An installment loan that you pay off over 12 to 24 months. Your credit score benefits from these low, regular payments. And you get your deposited money back after the loan term. 

Who Is Brigit Best For?

Do you keep getting popped with $30 to $35 overdraft fees from your bank? Then, Brigit may be the financial app for you. Brigit fights the wasteful overdraft fee battle on multiple fronts for its users. 

The free Brigit version vigilantly monitors for a low account balance and sends alerts to you if you’re in danger of overdrawing.

The Brigit Plus plan releases an auto-advance and cushions a low balance to keep you from going negative. Brigit also addresses the root of the problem, which is a lack of oversight of your budget or not enough income, and offers tools so you can better manage your bank account.

Because there are cheaper ways to get a cash advance than paying $9.99 per month, like from the Earnin app we’ll mention below, Brigit is not ideal for people who won’t make use of its budgeting, credit building, and overdraft features, in addition to the occasional cash advance. 

Is Brigit Safe?

Brigit uses 256-bit encryption, the same level of protection as your bank. This level of encryption is still impossible to crack by modern computers, so you can feel confident when sharing your bank account login information and Social Security number. 

When using the credit builder account feature, you’ll open a locked account with Brigit backed by their partner Coastal Community Bank. This bank is FDIC insured, so your deposits are also insured, up to $250,000. 

As far as personal financial decisions go, Brigit puts safeguards to help protect users from going into a deeper debt hole. Only the most financially stable users qualify for a $250 advance, a relatively low amount and only one advance can be taken out at a time.

Brigit Pros and Cons

There is no shortage of fintech apps out there, but Brigit differs in offering a mix of financial products in one place. Here’s more of what we like about the app:

Pros:

• No interest for cash advance
• No late payment fees
• No instant transfer fees 
• Credit builder and savings options
• UX-friendly budgeting/spending graphics

While Brigit modernizes old-fashioned budgeting methods, the app still favors traditional employment models. For example, Brigit will take longer to approve you for certain paid features, like Instant Cash, if you’re paid sporadically or have many different streams of income. You’ll also need to make at least $1,000 per month from one client to be approved at all. Here’s a list of other things we dislike:

Cons:

• Limited to $250 cash advance
• Recurring monthly $9.99 cost to access all features
• Limited income booster opportunities
• Only works with U.S.-based banks
• Not freelancer friendly
• May take some time to be approved for a cash advance
• Some user reviews report having trouble getting the app to work or link to their bank account
• Many user reviews report having trouble canceling the subscription service

Brigit Alternatives

Earnin

Some financial emergencies demand more cash than $250. Preferably, you have an emergency fund to pull from. But when finances are stretched thin, Earnin is a cash advance app with unbeatable maximum limits, at $500 for regular users and up to $1,000 for users with an Earnin Express deposit account.

The app is also free to use, so you won’t be handing over $9.99 per month. However, you’ll still need to be paid on a predictable schedule from one main employer. 

Earnin is ideal for those who prioritize cash advances for no cost since this platform does not have all the extra financial bells and whistles that Brigit offers. Earnin is also more involved in tracking your income. Beyond employment verification, Earnin tracks your work email, your physical location, or your electronically logged timesheets to determine your hours worked and the maximum amount of cash advance you can take out.

Read our Earnin Review 

Chime

Chime^® came onto the fintech scene in 2013 and has since been a leader in transforming the traditional banking model. Chime offers the following features:

• Visa^® Debit card
• Access to Secured Chime Credit Builder Visa® Credit Card
• Get paid up to 2 days early with direct deposit²

Chime also has the SpotMe option for Chime Checking Account holders. SpotMe makes it possible to spot your account anywhere from $20 to $200 without penalty. Anyone who has a single qualifying deposit of $200 or more can qualify for SpotMe. 

Chime has no subscription fee, but it’s also not a budgeting app. Instead, Chime offers banking products with no monthly fee, so this may be the fintech company for you if you don’t need a budgeting app.

Read our Chime Review

Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank, N.A. or Stride Bank, N.A.; Members FDIC. Credit Builder card issued by Stride Bank, N.A.

Frequently Asked Questions (FAQ)

Final Thoughts

Brigit can be worth the price if you fully utilize its budgeting, credit-building, and cash advance features. But it’s expensive so you won’t want to use it long-term. The income-boosting feature isn’t worth paying for – it’s essentially the same time-consuming survey platforms you can find anywhere else online. If you need just one of Brigit’s features, you are likely to find it somewhere else cheaper. 

To get an occasional cash advance once or twice a year, try the financial institution you already bank with. It’s better to pay an occasional advance fee for emergencies than an ongoing $9.99 per month.

For budgeting, there are accessible, low-cost financial tools out there that can help you manage a budget and access cash while you build up your emergency fund.

Brigit

Michael Pruser

User Features

Loan Options

Customer Service

Costs and Fees

Mobile App

Summary

Brigit is an app that can help you budget and allows you to take a cash advance without interest. Costs are reasonable and the mobile app is a big plus.

4.5

Consider a Cash Advance with Brigit

The post Brigit Review 2024 – Budget Your Way Through Your Next Payday appeared first on Doughroller.