Adrienne Toney

Economics
2nd Period

How can banking and budgeting lead to better money habits?

If one utilizes all of the benefits that banks and budgeting apps have to offer then that
individual with possess better money habits than others. Banks have multiple benefits that make
it easier for one to get better habits concerning money and “a bank account is a necessity when it
comes to managing money quickly and easily”[5 Reasons Why You Should Have A Bank
Account]. Budgeting apps such as the Mint app allows anyone with a bank account to see
everything concerning money on one screen. Keeping up with apps and bank accounts allow
better money habits to take place in ones life.
According to the Making Financial Decisions: Banking, Budgeting, & Money Habits
worksheet there are multiple systems in place to make it easier for one to own a bank account
successfully. For example, the direct deposit system allows money to go “straight from the
account of whoever is paying you to your account”. This saves one from the hassle of going to
Currency Exchanges and bank location. Instead of going to either one of those places to recieve
cash or deposit a check, money is filtered straight into the individuals account. Making sure
one’s account does not go into the negative by keeping it charged with money is a money habit
that one can adopt by setting up direct deposit with one’s job and bank.
The Making Financial Decisions worksheet also speaking about automatic payments.
One would use automatic payments for monthly services, fees, or bills. “Setting up automatic
payments for recurring bills can help ensure you pay your bills on time with no hassles”. Since
it’s easy to forget something regardless of its importance it would be beneficial for one to get the
worry of bills off of the individual’s mind. Keeping up with bills and making sure that they are
always paid on time is a great money habit, with the help of automatic payments set up by one’s
bank anyone can achieve it.
Downloading a budgeting app enables the user to have control over money and allows
the user to make better financial decisions. According to the article, 16 Best Budget Apps for
2019 “you can use these budgeting apps to turn your iPhone or Android into a personal finance
advisor that can help you know when to spend money, identify where you waste money”. By
having something as simple and handy as an app on your phone to help one manage one’s
money by budgeting the user can save more money by spending less money on wants.
Ultimately, “using an app that handles both budgeting and balancing your account can make it
much easier to balance your account”[Financial Planning Tips for High School Students].
Banking and budgeting leads to better money habits because one will be able to have a
better visual of their money and this leads to them saving up and learning how to become more
financial responsible by adopting better money habits.