Comparison shopping

3 Ways Americans Are Getting Better at Managing Their Money

Emily Guy Birken — Wed, 11 Oct 2017 08:00:06 +0000

We are used to hearing all kinds of terrible sky-is-falling news about how regular Americans are getting into debt, failing to plan for the future, and generally falling down on the job of managing their money. But the media rarely reports on the good financial behavior exhibited by Americans, even when there is plenty of great news to cheer about.

So before we all assume that Americans are clueless about financial matters, consider the following money skills that we are excelling at:

76 percent of Americans have money set aside for an emergency

You may recall the grim reports just before the 2008 crash that showed Americans had the lowest personal savings rate since the Great Depression. According to The New York Times, as of 2006 the savings rate for the year "was a negative 1 percent, meaning that not only did people spend all the money they earned but they also dipped into savings or increased borrowing to pay for purchases."

Americans have since learned their lesson about being ready for an emergency. Bankrate's June Financial Security Index survey found that a full 76 percent of American adults have some money set aside for an emergency like a layoff or a huge medical bill. In addition, 31 percent have built enough of a savings cushion to handle six months of unemployment.

And rather than having negative savings, the Bureau of Economic Analysis has found that the personal savings rate of Americans has gone from negative 1 percent up to 5.5 percent as of November 2016. That means that for every $100 Americans are earning, they are putting aside $5.50 toward savings.

Not only is this higher savings rate great news for the individual households that may need to rely on their emergency funds in a financial crisis, but the economy as a whole also does better when citizens have savings to fall back on. That's because private savings today mean less government expenditure on social safety net programs tomorrow — and citizens who save will ultimately have money available to invest since they will not be stuck in a paycheck-to-paycheck cycle. (See also: 11 Ways Life Is Amazing With an Emergency Fund)

Manage your savings rate better

Whether you are among the top savers or are just starting your savings journey, remember that even increasing your savings rate by 1 percent now can make a big difference in your emergency fund or retirement account. Just remember to revisit that savings rate quarterly or twice a year to make sure you're maximizing the money you can set aside.

59 percent of Americans enjoy saving money

Generally, when you think of enjoying your money, you might imagine the pleasure you get from spending hard-earned dollars on something you love. However, more Americans claim that they derive more enjoyment from saving their money than they do from spending it, according to research by Gallup. As of May 2017, 59 percent of Americans claim to enjoy saving more than spending, while only 38 percent claim to enjoy spending more than building up their savings accounts.

Gallup reports that "in the years before the recession, Americans were close to evenly split in how they described themselves." The economic downturn helped many Americans learn to love the joys of saving money.

Improve your own outlook on savings

It can be difficult to find the fun in saving money if you're a natural spender. However, you can switch your viewpoint on saving money if you can find a way to make a game of your savings. For instance, you could challenge a friend to a save-off, motivate yourself with a savings goal thermometer, or even start saving all your $5 bills. Once you start seeing savings as a fun challenge, you'll be much more motivated to increase your savings. (See also: 5 Savings Tricks You Haven't Tried Yet)

65 percent of American consumers research products before they make a purchase

Americans are no longer happy to simply buy products without doing research. According to Retail Dive's 2017 Consumer Survey, 65 percent of consumers choose to do research on the products they want online before going shopping in brick-and-mortar stores. In addition, 41 percent of Americans practice showrooming, according to an Accenture survey — that is, examining merchandise at a nearby retail store and then shopping for it online to find the lowest price. Both of these savvy consumer behaviors can save Americans money by helping them find the best product at the best price.

Some of this behavior is due to changes in technology. Even as little as 15 years ago, it would have been much more difficult for consumers to apprise themselves of all the product options and price ranges available, and the convenience of purchasing the first product examined overrode the price savings before the smartphone era. However, with the rise in smartphone usage, consumers can now educate themselves on the best-reviewed and lowest-priced options available.

Improve your use of technology and information

Technology can be a double-edged sword. While your smartphone makes it possible to research prices offered by other retailers, it also makes it easy and convenient to buy items you don't need with the click of a button. Make sure you are a savvy consumer by committing to do research before you make a purchase, and to take a timeout before you click Buy Now. Those two habits will help you save money and only get the products that will actually add to your life.

Like this article? Pin it!

This article is from Emily Guy Birken of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

The Pros and Cons of Keeping All Your Accounts in One Bank

Damian Davila — Fri, 16 Jun 2017 08:30:10 +0000

Checking, savings, business, CD, money market, cash reserve, investment — with so many accounts available to U.S. consumers, should you keep them with a single financial institution? Let's review the pros and cons of keeping all your accounts in one place.

Pros of keeping all your accounts in one place

Here are some reasons why it makes sense to consolidate your accounts.

1. FDIC covers up to $250,000 for each eligible account

The Federal Deposit Insurance Corporation (FDIC) provides coverage of up to $250,000 per eligible account at the same insured financial institution. Covered accounts include checking and savings accounts, money market deposit accounts (MMDAs), and certificates of deposit (CDs).

So, as long as each one of your qualifying accounts has a balance under $250,000, it's OK to keep those accounts together at the same financial institution. For example, if you were to have $100,000 each in a CD, checking account, and savings account at the same FDIC-covered bank, you would still be insured. Even though the accounts together equal $300,000, each account has less than $250,000, and the coverage would still apply.

To find out if your deposits are insured by the FDIC, use the FDIC's Electronic Deposit Insurance Estimator (EDIE).

When you add accounts to your portfolio with the same bank, just remember that the FDIC warns consumers that non-deposit investment products, such as mutual funds, annuities, life insurance policies, and stocks and bonds are not insured by the FDIC.

Are you a credit union member?

Federally chartered credit unions and those with headquarters in Arkansas, Delaware, South Dakota, Wyoming, or the District of Columbia are insured by up to $250,000 by the National Credit Union Administration (NCUA).
State-chartered credit unions may be covered by a state-sponsored or private insurance, so contact your credit union representative for more details about potential insurance of deposits.

2. Quicker coverage of bounced checks

Having more than one account at the same bank may help you to quickly cover a check or automatic debit or credit transaction with insufficient funds.

Some banks may give you a quick heads up early in the morning that an incoming transaction won't clear due to a low balance, giving you time to make a quick deposit. In the event that you have a savings and checking account with the same financial institution, you could quickly cover the cash crunch by transferring funds from the savings to the checking account over the phone or online. (See also: How to Fix Your Finances After Missing a Payment)

Doing a quick transaction to cover that mistake could prevent the bank from applying overdraft or insufficient funds fees.

3. Access to higher savings interest rates and lower account fees

When you hold a large total of deposits within the same institution, very often you can qualify for better savings rates and reduced account fees. Find out from your financial institution whether or not they offer benefits for consolidating your accounts.

Similarly, holding a larger total balance across several investment accounts, such as an IRA or individual investment account, may grant you some breaks on investment fees. Generally, with at least $100,000 in investable assets in the same institution, you should get lower charges on future applicable fees, such as front-end or back-end loads.

If you don't meet the necessary thresholds to access better rates and lower fees, ask your financial institution if they'll accept a signed letter of intent to meet those thresholds by a specific date.

4. More personalized service

Maintaining a wide variety of products with the same bank allows the bank to have a better understanding of your financial history, overview of spending habits, and ability to pay back loans. When a financial institution has a more comprehensive view of your finances, then it can help you optimize your finances with more suitable products. For example, keeping several deposit accounts may help you qualify for a personal line of credit with an interest rate lower than that of a credit card.

Cons of keeping all your accounts in one place

Now let's take a look at the disadvantages of consolidating all your accounts under the same roof.

1. Missing out on potentially better deals

By turning your back on other financial institutions, you may develop a case of "financial myopia" in which you don't think about shopping around for better banking options. Sticking to your same brick-and-mortar branch may cause you to miss out on the better annual percentage yield (APY) that online savings accounts often offer.

According to the FDIC, as of June 12, 2017, the average rate for a deposit account with a balance under $100,000 was 0.06 percent. On the same day, you could find online savings accounts paying a savings rate of up to 1.25 percent for an account of similar size.

2. Potential of losing FDIC coverage

The FDIC coverage limit is $250,000 for each qualifying account. High-earners may run out of options in the same financial institution for opening eligible accounts and risk having a portion of their deposits without FDIC coverage.

3. Higher chance of loss in case of identity theft

Keeping all your eggs in one basket may work against you if a fraudster gets a hold of one of your accounts or cards. Getting access to just one account may grant them access to all of your money! This is particularly true when connecting two or more accounts so that one account covers another when a balance is running too low.

If malicious hackers were to get a hold of the password for your bank's online portal, then they would have hit a major jackpot accessing all of your accounts. By spreading your funds across more financial institutions, you lower the chances of a cybercriminal accessing your funds. Of course, this is as long as you don't use the same password for all online portals. (See also: 3 Sneaky Ways Identity Thieves Can Access Your Data)

The bottom line: Talk with your banker today

If you're thinking about opening more accounts with your current savings institution, it's a great time to sit with a representative and go over your available options. Armed with that information, you'll be in a better position to shop around for better banking options and make a more informed decision.

Like this article? Pin it!

This article is from Damian Davila of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Cheapism.com: Where Cheap is Chic

Nora Dunn — Tue, 03 Nov 2009 15:00:14 +0000

Cheap: Once considered a derogatory term, this word refers to the act of trying to save money wherever possible.

Cheapist: Somebody who supports acts of being cheap.

Cheapism: A way of life.

The Premise

Cheapism.com is a free service that helps consumers find the best of the cheapest items, weeding out cheap junk in favor of quality inexpensive items. Just because it is cheap, doesn’t mean it has to be crap.

Max Levitte, founder of Cheapism.com, has experience managing reputable review-based websites for consumers. For Levitte, “Cheap doesn’t have to mean low quality. We’ll give consumers the confidence and information they need to shop wisely during this economic downturn and in the future.”

According to Levitte, Cheapism.com differentiates itself from other services with their "singular focus on low-cost goods and services and the interests of frugal consumers."

And here at Wise Bread, being frugal consumers is a pretty big thing.

Product Research

When you normally research a product, you rarely find any information about cheaper models (possibly because the manufacturers of the cheaper models don’t have huge supplies to give away for publicity). Instead, you learn about all the fancy features of the top-of-the-line netbook or kitchen appliance (for example), without even knowing that cheaper alternatives lie in wait.

So Cheapism.com has in-house reviewers who actually get their hands on the products they review. The reviews are candid and informative, and generally appear to be without bias.

Cheapism.com in Action

Click on a product category, and you’ll get an array of information to help you choose the best model for your needs. The extensive review focuses on product features (with recommendations for what features to look for and what to ignore), analyzes other online reviews, and leaves the reader with some recommendations based on the reviewer’s personal experience. The best models within each category are highlighted, having been sorted for the lowest prices from various online suppliers.

As an example, I took a peek at cheap rolling backpacks, since as a traveler my backpack is akin to my house at times, and I’ve already learned a few lessons about what makes a good travel pack.

The review was incredibly comprehensive, covering off topics like what to look for (in the fabric, wheels, straps, size, and weight), and what to expect (performance, maneuverability, durability, warranty). The reviewer compared a number of inexpensive packs to one another, and it is evident that the reviewer actually handled each of the backpacks prior to reviewing them.

To contrast this with something I know almost nothing about, I took a peek at what Cheapism.com had to say about GPS devices. In so doing, I learned a whole lot about what to look for in a GPS device, and how to get the best value from one — both in terms of price as well as features. Had I been serious about buying a GPS device, I would have been prepared to invest in one with only a minimal amount of cross-checking and further research.

Extra Value

Combine Cheapism.com with other efforts at receiving free shipping or online discounts, and you can save even more money.

Coming Soon

And for the upcoming holiday season, Cheapism.com will offer guides for inexpensive quality gifts.

Note: The author has no vested interest or affiliation with Cheapism.com

This article is from Nora Dunn of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Never go shopping unless you're armed with a cell phone.

Paul Michael — Mon, 04 Jun 2007 20:06:36 +0000

"It seems like a great deal, but maybe it's cheaper somewhere else?" I've said those words a lot, maybe not out loud but certainly in my head. The thing I love about shopping online is that I can instantly see if something is cheaper at another store. But, when you're out and about, how do you do the same thing? How do you keep your advantage? Well, if you take your cell phone with you, FruCall may just be the answer.

FruCall works off a very simple premise - barcodes. Almost every product has one. And if you were smart enough to set up a database, matching products to every published price available, well you'd have a database with which to comparison shop, just like the online sites we all use. FruCall has such a database.

Just sign up for a free account and you can tap that database anytime you like, as long as you're armed with your cell phone. Let's face it, who doesn't carry the preverbiable ball and chain with them everywhere they go?

I've been using FruCall on and off for about three weeks now, and I'm very happy with it. Whenever I'm out and about and see a purchase I'm interested in, I whip out the cell phone and hit my speed dial FruCall number. Then I input the barcode and wait for the results.

The automated voice takes a little getting used to. It's a cross between a human and a speak 'n' spell. But once you get used to her strange voice, you soon get the lowdown on the bargains out there. She'll tell you the price range of the item you're currently looking at, new and used, and where to buy it. So, if you see a cool TV for $1000 and find out someone else has that same TV for $800, not only do you know of the deal, you can actually order it right there and then through your cell phone. You can also use the service using text messages and mWeb. Handy.

FruCall has some other handy features, including VoiceNotes which remind you of products you've been hunting for. You can also set a bottom-line price for a product and the service will alert you when that product hits that rock-bottom price.

I couldn't go shopping without this handy feature. And when I'm not out and about, the website has a bunch more tools for bargain hunters, including gift ideas and product searches. It's all free and very easy to use. Give them a try folks. A free service that saves you money is always worth a look.

Main image courtesy of Nemo's Great Uncle.

This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Finally - the time-saving, money-saving, sanity-saving 4 in 1 price checker toolbar. Phew.

Paul Michael — Thu, 26 Apr 2007 01:15:49 +0000

There's one problem I have with being a thrifty shopper. Well, one big problem anyway. And it's that I always feel like there could be a better bargain somewhere else. I get buyer's guilt that I've overpaid, even when I've saved 90%. Because maybe, just maybe, I could have saved 95%. Or, 99% (the magic number...I have yet to see it).

Anyway, recently my life was made an awful lot easier by those clever techno wizards at howtobewebsmart.com . They've come up with a cool Firefox Toolbar gadget that allows you to search for prices on 4 well-known sites at the same time. That's right. One search does it all.

"What are the four sites?" I hear you ask. Well, they're small. Tiny. Ebay, Amazon, Shopping.com and Shopzilla.com. I'm sure you may have at least heard of them, they've been around a while.

All you need to do his click on this golden link right here and you'll be taken directly to the web page with all the simple, easy instructions and the rest, as they say, is a piece of cake. Just download the plugin and get shopping.

Another great feature of this tool, which I now use daily, is that the results from each store are brought up in a new tab on Firefox. So, you can continue to compare and contrast each deal with ease. Sweet. Right now, howtobewebsmart.com is also asking for additional ideas for sites that could be put into the price checker search engine (personally, I'd recommend Froogle but it's disappeared...it's now know as Google Products).

The 4in1 price checker is top stuff. It's a time-saver. It's a no-brainer. And it's simple. (I wish I'd thought of it.) Many thanks to Kesav Mohan from howtobewebsmart.com for bringing this to our attention. Kesav, keep those frugal tools coming. We love 'em.

This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Being Frugal with Froogle

Paul Michael — Tue, 30 Jan 2007 23:54:25 +0000

Note: Froogle is now Google Shopping.

I’m sure most of you are already fans of Google. But I wonder how many of you use Google Shopping (formerly Froogle), Google’s thrifty shopping aid, on a regular basis? Well, it’s well worth using if you’d like to save yourself a little cash on a lot of purchases.

1. Where Is It?

Back when it first launched as Froogle, it had a place on the Google homepage. Now, it’s a little buried. The easiest way to get to it, other than clicking on the link on this page, is by navigating to the Google.com homepage, then clicking on the "Google Apps" icon in the top right. Scroll through until you find "Shopping."

2. How to Use It

It’s a no-brainer, really. Just type in the product you’re looking for and hit search. Instead of finding sites about that product, Google Shopping finds places that sell it with the prices listed. Now just order your results from "low to high" and you’ll find out just who has that product for the lowest amount. Sometimes, the difference between stores is quite surprising, even for an experienced Internet shopper like me. But, as good as Google Shopping is, make sure you cross-reference your golden price on a few other price-comparison sites.

3. The Other Good Comparison Shoppers

Bizrate

I love Bizrate almost as much as Google Shopping. Same deal, just type in what you’re looking for. Bizrate will give you a list of subcategories to search within, and then you’ll get your product/price list. On Bizrate you can enter your zip code and get a good estimate of the shipping price too. Usually it’s bang on. I’ve often found stores listed on Bizrate that aren’t on Froogle, so make sure you check here before deciding on a purchase.

mySimon

I actually used mySimon before Google Shopping or Bizrate. I don’t find it as useful as them though — it doesn’t seem as intuitive, and it also seems to have a much smaller list of places to buy from. But, still worth a look from time to time.

So, whether it’s Father’s Day and you’re looking for yet another bad tie, or you’re doing your holiday shopping and need to save a few pennies here and there, try Google Shopping, Bizrate, or mySimon. I guarantee they’re money-savers.

This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: