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5 “Banking” New Year’s Resolutions

Whether your checking account is at a big national bank, small community bank, online bank or a credit union, 2012 is a chance to begin afresh. Start this year on the right foot with these resolutions for better banking.

  1. Audit your Financial Institution. Start the new year by tallying up fees you’re being charged for things like monthly account maintenance, overdraft protection transfers and out-of-network ATM use. How much are you paying each month and what are you getting in return?

  2. Use Cash for small purchases. Many studies have shown that when people use cash, they spend less than they do when paying with plastic. You’ll become a lot more aware of how much you’re spending for little stuff like coffee or cigarettes when you use cash.

  3. Set up Text Alerts. Most financial institutions will, at your request, send you text messages for different activities on your account. If you set up an alert when your balance drops below an amount you select, you can keep yourself from getting charged insufficient funds fees.

  4. Think of a better PIN. It’s your birth date or your dog’s name, isn’t it? Study after study of PINs and passwords show that an alarming number of us have easily guessable ones. Sophisticated criminals now coordinate their information gathering with infiltrating social networks like facebook – which means they’ll already know your dog’s name and your birthday. Forbes.com has two lists of the most popular – that is, the least secure – passwords of 2011. If you see your PIN on either one of them – change it now!

  5. Make Saving Automatic. Building up an emergency fund or saving for a big purchase is easier if you don’t have to think about it. Set up an automatic transfer from your checking account to a linked savings account each month. Before you know it, you’ll have a nice little stash put away – painlessly!