Afrikan Goddess (AG) Online

Written By: N. Amma Twum-Baah
Monday, June 1, 2009 

For many women, it takes a life changing experience – the birth of a child, the loss of a spouse, the end of a romantic relationship – to get us thinking about our financial state - much money we have in the bank. Very often we are faultily dependent on others, touch an extent that we fail to pay attention to all the financial options available to us – and there are many.

If there was ever a time to wonder and to be concerned about the state of our financial affairs, now is that time. Fees are more important to the banking industry now than they have ever been. This is because the state of the economy has left banks scrambling to find additional sources of funding needed to keep them afloat. But, why should you be the one to fund their accounts and daily operations when you could use the money for something a lot more exciting? That’s what the money contributed to savings and checking accounts are for. As the saying goes, little drops of water make a mighty ocean. Now think of those occasional NSF fees, account maintenance fees, and ATM fees you see on your bank statement as those little drops of water. And what a mighty ocean you have helped create for those who need it less than you do!

ATM Fees: The extra drive across town to withdraw money from your bank’s ATM is probably worth the drive if you think of the fact that for every withdrawal you make using a “foreign” ATM you’re likely to pay up to about $5.00 per transaction. That’s $2.50 from the ATM at which you withdrew the money and $2.50 from your bank for using an ATM not owned by them. Imagine how much money you would have given away in a month if you were to do this on a regular basis.

Maintenance Fees: What many people don’t know is that money deposited in bank accounts is what’s in turn given out as loans to others, for which interest is applied. That’s your money loaned out to another person on which the bank is making a profit. Why then turn around and allow this same bank to charge you for keeping your money? It makes very little sense, right? Yet you will be surprised by the number of people who do indeed bank at places where monthly fees are charged. There are many banks competing for consumers these days. And, many are charging zero dollars to have you bank with them. So, before you decide where to put your money, shop around and pick the one that’s the best fit for you.

Phone Payments: Pay your bills online instead. It’s free! Making credit card or utility bill payments over the phone can cost you as much as $4 per transaction. It makes very little sense when that same payment can be processed online at no charge!

Overdraft/Non Sufficient Funds (NSF) Fees: These are the most painful fees for anyone who has ever forgotten to balance a check book or keep track of their expenses. One little slip can cost you up to $35/per transaction these days. Imagine that a $2 cup of coffee from Starbucks could end up costing you $37 or a bracelet you saw on sale for $10 (and you thought it was such a steal) could end up costing $45.  Yes, these things do happen, so be vigilant when it comes to the money you have in the bank. If possible, pay for small purchases with cash. Check account balances frequently, and question charges on your account that you think are unfair or errors. Sometimes, just a courtesy call to your bank to complain about that charges will get them to shave off some of the legitimate fees.

The simple solution to growing your money for your own future enjoyment is to avoid paying fees of any sort if you can help it. You’ll be surprised how fast it adds up. Therefore, before you casually ignore another fee on your banking statement, or decide to withdraw money from a foreign ATM because your bank is an extra block away, ask yourself this: “After giving all this money to the bank, what are you getting in return?”