Issue #78: Confession — I’ve got balance problems

January 27, 2021 // ISSUE #78

Hi y’all —

I know I seem flawless, but in reality I have a LOT of bad habits.

I’m a picky eater, especially when it comes to vegetables and spicy foods. I bite my nails; I hold grudges. I dog-ear pages in books. I lose my debit card on the regular. I have a weakness for buying dumb sweatshirts and expensive concert tickets, and after a few drinks it’s like I’m physically unable to stop oversharing.

I also check my bank balance obsessively. It’s so easy to do on my iPhone that it’s become a routine: I see what’s happening on Twitter, scroll through Instagram, and click over to the Bank of America app. Then I’ll peek in on American Express and Ally.

I don’t really know why I do this, and TBH I’m not actually sure that it is a bad habit. But my friends log into their accounts wayyy less often than me, which makes me worry that I’m abnormal.

So I decided to get an outside opinion. How often is too often to check my bank account on my phone?

I called Brad Klontz, a CFP and financial psychologist, to figure out what’s going on with me (an evergreen issue). He said he has two theories as to why I feel so compelled to check my mobile banking apps all the time. Both have to do with my childhood.

Growing up, my family wasn’t wealthy. Klontz said that likely led me to develop what he calls a money script, or a financial belief system that follows a person their whole life. He said there’s probably “a belief clanking around in [my] subconscious that there’s not enough money” — and one way I’m dealing with it is by checking my balance.

Basically, I’m seeking out security. By looking at the numbers, I’m reassuring myself that I do have cash if I need it.

The other factor is happier. Because I’m not used to having money, I get a dopamine hit when I see my balance grow. I feel like I’m doing something right. I’m preparing for the future.

i moved my bank app into my games folder bc i always end up playing a little something called "lets guess the balance"

No matter what the origins of my habit are, Klontz said money vigilance is generally a good behavior to have. That sort of anxiety can inspire smarter saving and spending. He compared it to a squirrel saving nuts for the winter — if the squirrel wasn't at least a little concerned about starving, it would end up starving.

“The fact that you're vigilant and concerned about it is a much better problem than not being concerned,” Klontz adds.

April Schneider, the head of consumer and small business products at Bank of America, also said monitoring my balance can improve my financial health.

“Until someone is really intimate with their finances, with their spending habits, there is nothing wrong checking it daily,” she says.

It can help me feel more in control of my money. For example, looking at my apps before I make a silly purchase or decide to go out to dinner can keep me on track for my goals. It may remind me not to blow cash I could use elsewhere. (On the other hand, it could make me feel like I can afford to splurge, so I should tread carefully.)

Schneider actually suggested I take my balance-checking a step further. Instead of only seeing the number, I should click in and see what exactly has come out of my account lately. This will help improve my timing. If I see that I get charged for Netflix on the same day every month, I can start to plan for it.

The key is to avoid surprises, according to Felicia Gopaul, a CFP and CFP Board Ambassador.

That’s especially true when my funds are running low. If I’m in danger of overdrafting my account, blissful ignorance could literally cost me. Overdraft fees are typically about $35, but they add up fast. Banks collected $11 billion worth in 2019.

Even so, looking more than once per day is probably not necessary. Unless I’m expecting a paycheck or inheritance from a rich relative to drop, things won’t change that much from one hour to the next.

THE BOTTOM LINE

(but please don't tell me you scrolled past all of my hard work)

Checking my balance is a good habit to have, and it probably traces back to my upbringing.

As far as doing it too often, Gopaul said I should pay attention to whether it’s disrupting my life. If I’m poking around on the Bank of America app when I should be communicating on Slack for work, that’s a red flag. If I can't get through a conversation without taking a break to log onto Ally, that's a problem.

Otherwise, though, “knowing how much is going to be coming out of your account is a good thing,” she says. So is “knowing what you are about to take on and its impact on your finances.”

I'm actually not sure how much money I have

via GIPHY

RECEIPT OF THE WEEK

via Instagram

Sen. Bernie Sanders went viral last week for his Inauguration Day look — furrowed brow, crossed arms, huge coat. But he paid nothing for perhaps the most iconic part of his outfit: the mittens. A Vermont teacher named Jen Ellis made the pair out of recycled materials a few years ago and gave it to Sanders as a gift. She’s all sold out now, with no plans to knit more, but she did offer Slate some commentary on Sanders’ iconic expression. “No, I don’t actually think he was grumpy,” Ellis said. “He is who he is, and not everyone has a resting pleasant face.”

INTERNET GOLD

five things I'm loving online right now

1	I can’t stop watching this incredibly soothing video of cheese being made.
2	François’ lemurs Mei Mei and Chester had a baby last month at the Philadelphia Zoo! Named Quý Báu, which means “precious” in Vietnamese, she got a spa treatment right out of the womb. Zookeepers gave her a nice, warm bath and did her hair before returning her to Mei Mei to bond. Come for the clip of Quý Báu chilling under a hair dryer, stay for the portrait at the end.
3	Death Cab for Cutie covered TLC’s “Waterfalls,” and it’s predictably great.
4	It’s old, but I really loved this Rolling Stone piece about rocker Tom Petty’s years-long commitment to making the perfect cup of coffee. “What he was after in a cup of coffee, he explained, was something he found in a Gainesville diner, where he could sit for hours, getting refills, wrapping his fingers around a cup that kept being replenished,” Warren Zanes writes. “In that perfect cup of coffee Tom Petty served me … he could almost experience, almost feel, something he couldn’t completely get back to.”
5	Prince, but make it birds.

401(K)9 CONTRIBUTION

send me cute pictures of your pets, please

via SL Giacomini

This is Molly Marie, who is relaxing in the tub and not thinking about her awwwcount balances.

See you next week.

Julia

P.S. How often do you check your bank balances? Are you addicted to your phone, too? What’s the best cup of coffee you’ve ever had? Tell me stories at julia.glum@money.com or @SuperJulia on Twitter.

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Issue #78: Confession — I’ve got balance problems

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