3 Banking Habits Frugal People Use To Make Every Dollar Stretch
Written by
Laura Bogart
Edited by
Kristen Mae
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Your bank is more than just a warehouse for your money. Think of it as an ally — a resource that not only helps you grow your savings but also equips you with the tools to grow your understanding of how money works, and, specifically, how your money can work for you.
Frugal people know how to take advantage of the services available through their bank to make every dollar feel elastic. That is, to stretch it as far as it’ll go and then a little further. From budgeting apps to spending trackers to low- or no-fee accounts, there are plenty of terrific habits you can adopt right now to join the ranks of the savvy and frugal.
To learn more about the banking habits that can set you up for success, GOBankingRates spoke with Shawn Niehaus, head of Consumer Banking at Fifth Third, and Mary Loftus, president of Impressia Bank.
1. Check Your Accounts Regularly
Many people know the anxiety of loading groceries onto the conveyor belt while silently hoping their accounts have enough to cover it. One way to know definitively what you have in your account — and to ensure you have enough to cover what you need — is to check it regularly.
Reviewing your accounts with a fine-toothed comb is a great way to identify spending patterns and find ways to save more. Fortunately, many banks, including Fifth Third, offer digital tools that simplify tracking your finances.
“It sounds simple, but checking your accounts every day is an easy way to become more familiar with your spending patterns,” Niehaus said. “We continue to invest in updates to our digital experiences to help our customers get a quick and detailed view into their spending habits.”
2. Explore Early Pay Options
Having extra money in your account can mean the difference between paying a bill on time, avoiding credit card debt, or making a necessary purchase. That’s why seeing if your bank offers the option to let you receive early payments can be a game-changer.
“One of our most popular product innovations has been our Early Pay feature, which has helped many customers get paid up to two days early,” Niehaus said. “We’ve heard directly from customers that the ability to get paid even two days early makes a world of difference in managing their finances and making every dollar count.”
3. Gamify Your Daily Money Management
One of the biggest perks of using your bank’s spending and tracking apps — or simply reviewing a paper bank statement if you’re old-school — is that you can pinpoint exactly where you should cut your spending.
Are you spending too much at a “fancy” grocery store or digging into sales for products you don’t really need? Loftus suggested that by using insights from your bank, you can turn the process of becoming more frugal into a rewarding challenge instead of a chore or punishment.
“Make your dollar go farther by gamifying your day-to-day money management,” she said. “Don’t be afraid to take advantage of deals, and shop around for the best prices on groceries, clothes, and more. Leave items in your digital shopping cart for a few days longer. Track the money you saved by not spending it on the day you wanted. Set goals for your money and reward yourself as you make small mindset changes.”
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