Money Management

Before any big purchase, I always read Reddit reviews of the product. Here’s why you may want to do the same. 

There’s nothing worse than making a big purchase and finding out that you wasted the hard-earned money in your checking account when it doesn’t live up to the hype.

Unfortunately, it can sometimes be hard to avoid making a mistake and buying a product that turns out to not be nearly as great as you’d hoped it would be.That’s the case, in part, because you can’t necessarily trust what people are saying about the item. One analysis found that as many as 42% of reviews on Amazon were fake, while another found 30% of all online reviews across all retailers are actually fraudulent, and people typically can’t tell the difference.

To reduce the chances that I’ll experience a problem with the costly products I put on my credit cards, there’s one simple thing I do before I make any large purchases. Here’s what it is.

This trick has helped me to be a more informed buyer

When I am going to spend my money on something expensive, the first thing I do is head over to Reddit.

Most people probably know what Reddit is, but if you don’t, it’s a network of communities or “subreddits” where people come together to talk about things they are excited about.

There are subreddits for just about everything, including most of the different kinds of products you may need to purchase like mattresses (r/mattress) and various electronic devices (like r/4ktv). And there are subreddits for smart shoppers like r/BuyItForLife, where people are dedicated to finding durable products that will last.

These sub-forums at Reddit are not full of paid reviews, or even reviews from blogs or websites where you don’t necessarily know if the writers are being paid to promote specific products. They are groups of regular people who have come together to talk about a subject they are excited about and to share their real experiences.

When I read about a particular product on Reddit, I can find out what it’s really like from those who have used it and who have no agenda. I can also ask for advice from knowledgeable people who have done their research to figure out what brands are worth looking at.

It takes just a few minutes to do a search of Reddit before buying, but it has saved me numerous times from making mistakes like buying a name-brand mattress with great reviews but that actual users had terrible experiences with. And best of all, it costs nothing to do this consumer research and benefit from the hard work of many people who came before you and took a deep dive into the products they were buying.

Be sure to do your homework before making big purchases

As a consumer, you owe it to yourself to do the work before buying something.

Check out Reddit for real, unbiased consumer reviews. And, whatever you end up buying, make sure you use a credit card with good purchase protections, like an extension of manufacturer warranties. This way, if something you buy does turn out to be a dud, your card may be there to help you replace it without causing you to lose your investment and negatively impact your personal finances.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.

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Bank fees can cost a small fortune, but you can find a bank that won’t charge you. Check out three fees you should ditch as the new year begins. 

Your bank accounts should be tools that help you grow richer. You should be able to use your checking account to pay the bills and store your money until you send it to where it needs to go. Unfortunately, sometimes banks charge you fees while they’re supposed to be keeping your money safe.

You don’t want to lose your hard-earned money to these unnecessary costs, so it’s time to leave these three bank fees behind forever as the new year gets underway.

1. Monthly maintenance fees

Did you know banks sometimes charge you just to keep your money with them? That’s right — a bank can make you pay to be a customer and give it your cash to hold onto even if you ask basically nothing else from the bank. This cost comes in the form of a monthly maintenance fee.

Monthly maintenance fees generally range from around $3 or $4, to as much as $25 a month. There is absolutely no excuse to stick with a bank charging these fees unless you’re able to jump through whatever hoops banks put in place to avoid them. Most banks allow you to do so if you maintain a certain minimum daily balance in the account or make a set number of monthly deposits. You might also get the fee waived if you’re a student or a senior.

Still, even if you can get the fee waived, it may be better to just go with a bank — like Ally — that won’t charge you in the first place. That way, you won’t have to worry if you drop below the allowable limit or something else goes wrong and the fee waiver no longer applies to you.

2. Overdraft fees

Overdraft fees can also leave you with a lot less money to stick in your savings account. Fees could be around $30 per overdraft, which is a lot of money. This helps to explain why banks and credit unions collected $15.5 billion in consumer dollars in 2019 as a result of customers overspending their account balances.

An overdraft fee is charged if you try to take more money out of your account than you have. For example, if you have $20 in your bank account and try to use your debit card to make a $30 purchase, the bank might allow the purchase to go through but charge you a $30 fee. So, you’d have a negative balance and have to pay the bank back $40 (the fee, plus the extra amount the bank allowed you to charge).

You could also get hit with a nonsufficient funds (NSF) fee, which happens if you try to pay for something and the transaction is declined due to too little money in your account, or you could get stuck with an unpaid check fee if you write a check without the funds for it to clear.

These fees can really add up and, usually, you’re already struggling when you’re hit with them or you wouldn’t have had too little money in the first place.

If you can, try to keep a financial cushion — such as $500 or $1,000 — in your account so you won’t accidentally overdraft. And aim to live on a budget to avoid spending more than the amount in your accounts.

You can also leave the fees behind forever by finding an account that charges no overdraft fees at all. Just be careful to understand the terms. For example, SoFi says customers get no-fee overdraft coverage, but you must meet requirements such as making monthly direct deposits of $1,000 or more. Even if you do that, you’ll only be covered for up to $50 in debit purchases and you won’t be eligible if you haven’t paid your negative balances in the past.

3. ATM fees

Finally, you’ll want to say goodbye to ATM fees, which charge you for access to your funds in cash. You can do this by looking for a bank with a big ATM network, like Bank of America, so you never have to visit out-of-network ATMs that charge you. Or you can look for a bank that covers ATM fees for you (for example, TD Bank will do so if you maintain at least a $2,500 daily balance).

The good news is that leaving these three fees behind for good is possible — and you should work toward doing it in 2024 by finding a bank that actually protects your funds instead of nickel and diming you to take your cash.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Ally is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America. The Motley Fool has a disclosure policy.

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Would you like your employer to help improve your personal finances, beyond your paycheck? Here’s how financial wellness benefits could help you prosper. 

Why does your company give employee benefits? It’s not because it’s a nice thing to do. Employers offer health insurance, 401(k) plans, and other employee benefits because they want to keep people healthy and happy, so they can stay on the job and keep working hard. Good employee benefits packages also help companies stay competitive in the market for talent, so the companies can keep attracting and retaining good employees. (And there are tax benefits for employers, too.)

Along with recent talent shortages and challenges in hiring (and retaining) qualified people, some companies are getting more creative with employee benefits. Along with health insurance, a dental plan, and a 401(k) match, many companies are starting to offer financial wellness programs. These programs are coming at a time when more employees are feeling financial stress and anxiety from rising inflation and other economic concerns. According to the Bank of America Workplace Benefits Report, as of June 2023, only 42% of employees — and 38% of women — felt “financially well.”

When people are worried about money, they often struggle to bring their best efforts to work. Companies that offer better financial wellness benefits are likely to see better loyalty from employees, and better productivity.

Let’s look at a few intriguing financial wellness benefits that companies might offer in 2024.

1. Emergency savings accounts

Many companies offer 401(k) plans, and saving for retirement is all well and good. But what if you need money right now? What if you’re one of the 63% of American employees who don’t have $500 to cover an emergency expense?

SecureSave is a company that works with employers to help employees build emergency savings. When a company signs up for SecureSave, the employer helps employees set up emergency savings accounts with regular deposits from their paychecks. Employers can also choose to put sign-up bonuses and matching amounts into the employees’ savings accounts, in the same way as a 401(k).

Employees who participate in SecureSave emergency savings accounts have saved an average of $1,000 in one year, according to the company’s data.

2. Financial advice and coaching

Many aspects of personal finance are too complex and emotionally fraught to handle alone. Having a professional financial advisor by your side can help you navigate tough choices and understand your path forward. Some employers offer free financial advice or retirement planning, such as an annual meeting with a financial advisor to help review your 401(k) plan and investments.

Another option for financial advice in the workplace is Financial Finesse, a company that works with employers to set up financial coaching programs as part of an employee benefits package. With Financial Finesse, employees get free access to financial coaching from Certified Financial Planner (CFP®) professionals. The CFP coaches are unbiased — not selling anything — and help employees at all income levels, not just higher-earning executives.

Financial coaching can make a life-changing difference for people at all levels of income and walks of life. Watch for more companies to offer financial advisory services as an employee benefit.

3. On-demand pay

Some employees struggle with the financial stress of not having enough cash to make it through the month, which leaves them vulnerable to expensive payday loans. Some banks are now offering early direct deposit so people can get paid two days before payday. In the same spirit of getting paid faster, a fintech company called Clair is helping employers offer “on-demand pay” as an employee benefit.

Clair is a banking app that helps employers set up programs for shift workers to get paid on demand — as soon as they finish a work shift. This benefit could be especially helpful for people who work in retail, manufacturing, warehouse, or logistics jobs where hours are unpredictable. As part of its “on-demand pay” programs, Clair also offers bank accounts through a partner bank. With these special Clair bank accounts, employees can get access to a 2% APY on their savings, and 3% cash back bonuses on everyday debit card spending like gas and groceries.

Bottom line: Handling your personal finances on your own can feel overwhelming, especially when prices are high and money is tight. Many companies are starting to explore new options for financial wellness benefits for employees. Your company might soon offer new programs to help you save money, get free financial advice, get paid faster, and improve your financial well-being in 2024.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Bank of America is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Bank of America. The Motley Fool has a disclosure policy.

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