“Hands in my pockets” was the catch phrase for a commercial a few years back that told us how bank fees can eat away at our savings. It was appropriate because it aptly described how banks have easy access to our cherished cash. Financial institutions are one of the few places that send you a bill (your bank statement) after they have already taken the funds out of your account.
Some of us will comparison shop for days to make sure we are getting a “good” deal – or drive across town to save a few cents a litre while filling up. Seeing the money leave our hands has an impact. When your money leaves out the back door – we tend not to focus on that – but we should. Service Fees are a very profitable part of the financial industry. These small charges add up quickly and can eat way away at your financial estate.
When I was in first year at University, my Dad told me to avoid carrying a large amount of cash around, for fear I might lose it. It was good advice, but it meant that I headed to the bank machine – all the time. The bank on campus was not the same one I used back home, so I was dinged an ATM service fee every time. “Cheating on your bank”, as this fee has been named, can cost you on average $ 1.25 each time. Not much, but it adds up. When I got home that year I just happened to go over my bank statements. I started to add up all the fees and I was shocked to find the ATM charges alone were over $90! Now imagine, instead of getting your statement from the bank, you were sent a bill to pay for your service charges. Chances are you would pay (sorry) closer attention to the fees being deducted from your account.
Finish the lesson at Public #onted out https://gregcawsey.substack.com/s/lessons-in-finance-teen-money-advice
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