With 2015 drawing to a close, you can set yourself up to end the year on a high note, at least financially. That doesn’t necessarily mean making monumental changes. Instead, consider tweaks like sidestepping monthly banking fees or setting aside money for the holidays. Here’s a look at ways to get started.
1. Request an EMV credit card.
The United States is finally making the transition to EMV credit cards, which have small microchips embedded that encrypt the card information and make in-person transactions more secure. Over half a billion new cards are expected to be in use by the end of the year, so if you don’t have one in your wallet now, you probably will before long. If not, request an EMV card from your issuer. Otherwise, the issuer may wait until your current card expires before sending a new one.
Using EMV chip cards may take some getting used to. Instead of swiping, you insert your card into a slot in an EMV-compatible card reader, then leave it there for a few seconds while the transaction processes. You then must provide either a signature or a personal identification number to authorize the transaction.
2. Ditch monthly banking fees.
Some financial institutions continue to hit customers with monthly service fees, which can get as high as $12 for basic checking accounts. But with plenty of free checking options available at online-only institutions, credit unions and some banks, customers shouldn’t feel trapped.
Before you go looking for a new place to keep your money, review your current financial institution’s fee waiver requirements. These tend to include things like maintaining a minimum balance of at least $1,500, opening a savings account at the same institution or using your debit card a certain number of times.
If you aren’t able to get fees waived, don’t hesitate to jump ship in favor of a free checking account. Just be sure to avoid any early closure fee your institution charges. Customers incur this fee by closing an account within several months of opening it.
3. Open a holiday savings account.
Not all households have credit card debt, but those that do have an average of $15,706 in total balances, according to government data crunched by NerdWallet. That kind of debt can weigh down your credit score and can make it difficult to score loans with reasonable rates.
To avoid racking up fresh debt in the coming months, enter the holiday season with a well-defined budget. Once you have a number in mind, take it a step further by setting up a separate savings account for travel and shopping. Fill it up by scheduling recurring transfers from your checking account. Come Black Friday, limit your spending to however much cash is in the account. You and your wallet will be better off for it.
4. Review your health insurance options.
Many people who don’t have health insurance will face a penalty come tax season. To avoid this fee — and to enjoy the benefits of having health insurance — consider using the coming open enrollment period to sign up. If you don’t get health coverage from an employer or a government program, you’ll have from Nov. 1, 2015 to Jan. 31, 201, to buy coverage through the Health Insurance Marketplace.
If you receive health benefits from your employer, you’ll have the opportunity to review your coverage this fall. Study the plans available to you to find the one that suits you best. Keep an eye out for any changes to your out-of-pocket expenses, such as copays and coinsurance.
Consumers with high-deductible plans can also use this time to set up health savings accounts, or HSAs, which they can fund with pretax contributions and then use for medical expenses.
The Takeaway
If you’ve done a good job managing your finances this year, don’t let the holiday season set you back. Try reining in your spending when shopping for gifts for family and friends. Get rid of unnecessary bank fees, and make sure you’re enrolled for health care. These kinds of moves will ensure that you enter the new year with a bit of momentum, which can carry you into a financially sound 2016.
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The Best Money Moves for Fall 2015 originally appeared on usnews.com
