One Money Design

Updated:  I changed the title of this post from “Opt Out of Overdraft Protection” to “Change to Overdraft Fee Policies” to be more in-line with the content.  Normally, I wouldn’t make such a change, but I felt my content focused more about the overdraft fee policy changes versus the overdraft protection changes some banks have made.

According to a NY Times article, Chase and Bank of America will change their debt card programs by lowering or eliminating fees, revamping how transactions are credited to accounts and letting customers decide if they want to opt out of overdraft protection. 

Many have been in the situation where you see that dreadful negative balance online when viewing your checking account.  Once you look at the details you see which transaction put you into the negative, but then also several fees, usually for each transaction the drove you further into the red, that drove you deeper into the hole. 

I’ll have to admit I’ve been there a few times in the past.  While the changes these financial institutions are making do make sense (the fees were inflated in my opinion), good cash flow management will always avoid the problem.

PT Money tells us some new ways to avoid bank overdraft fees.  I like the option of getting alerts or notifications by email if my balance were to hit a certain amount, or to be stopped at the register if I’ve made a mistake and my account doesn’t have enough to cover the purchase.  But thankfully, at least for these two financial institutions, we won’t be dinged as heavily.

More on Mint and Intuit

I learn more information this week about the Mint and Intuit plans after listening to the Consumerism Commentary Podcast interview with Mint’s CEO.  As I recently updated in my article, Intuit Buys Mint.com, Quicken online will be replaced by Mint.  So, the online service offering of Quicken today, will become Mint.  I think this is a good strategy.  It now allows Mint, who has been so successful in the last few years, to carry their model forward and incorporate features from Quicken online into the Mint product.  Mint will now have more resources behind product development which will further the potential of the product.  Note:  the latest is that it will still remain free to current and new users.

Tracking Daily Expenses

There was a nice article at Christian PF this week that talked about how to track daily expenses and the importance of performing this exercise.  Have you ever wondered where all of your money went?  This article discusses the common experience of looking in your wallet Monday morning and find out you don’t have near the money you thought you had.  Without a system for tracking the spending you truly never know where your money has gone.  Tracking spending, in my opinion, is a fundamental practice to managing money wisely.  

Without the ability to look at each expense, you really have no way of knowing whether or not you’re spending within your budget or spending plan.  As I mentioned in the comments, tracking expenses, whether by paper form or by software, can also be a tool used for communication with your significant other.  It’s not uncommon for one spouse to be in the dark when it comes to budget category balances, such as food/groceries. 

I’m pleased to announce my article, Overcome Impulse Buying, was included as an editors’ choice this week in The Carnival of Personal Finance #223, Financial Meltdown, a Year Later hosted by Taking Charge.

What were some of your favorite personal finance articles around the blogosphere this week?  Please share in the comments.