Money Smarts Blog

Working with members means I get all kinds of questions. Some are easy. Some require a little detective work. And some make me want to dramatically whisper, “Oh no…” while slowly backing away from the computer.

I’m not talking about ghosts, ghouls, or things that go bump in the night. I’m talking about financial mistakes that can haunt your wallet long after October is over.

After seeing a few of these financial frights firsthand, I’ve put together some of the biggest ones to watch out for, along with a few ways to keep them from haunting you.

Carrying high-interest credit card debt

Credit cards can be incredibly useful. But carrying a balance month after month, especially at a high interest rate, can turn a small purchase into a much bigger one.

That $75 dinner starts looking a lot less delicious when you realize you’re still paying for your dinner, months later.

How to avoid the scare: Know your interest rate, pay more than the minimum whenever you can, and have a plan for paying down high-interest debt. If you're feeling buried, talk with one of our Financial Coaches who can help you look at your options.

Not knowing your credit score… or what's actually on your credit report

Your credit score shouldn't be a mysterious number that appears from the shadows when you're applying for loan.

Check it. Know what's on your report. Look for errors. Keep an eye out for accounts you don't recognize. And please don't believe the old rumor that carrying a credit card balance helps your credit score. It doesn't. You don't need to pay interest just to build credit.

How to avoid the scare: Make checking your credit part of your regular financial routine. Your future self will thank you.

Having no emergency fund

Your car doesn't care that it's payday. Your water heater doesn't care that you just paid your mortgage. And apparently, appliances have some kind of secret group chat where they decide to break at the most financially inconvenient moment possible.

Without an emergency fund, an unexpected expense can quickly turn into credit card debt.

How to avoid the scare: Start small. Even $25 or $50 at a time adds up. Set up automatic transfers so saving happens before you have a chance to spend it.

Not knowing your balance

This one is a classic horror story. You swipe. You swipe again. You grab coffee. You pay a bill. Then suddenly your account balance looks a little… haunted.

As an Assistant Branch Manager and Financial Coach, I see what happens when spending gets ahead of the balance: NSF fees, declined transactions, and some very unhappy account holders.

How to avoid the scare: Get familiar with your daily balance and use your online or mobile banking app to keep tabs on your spending. A 30-second balance check can save you from a much scarier surprise later.

Not using your Digital Banking tools

You have a tiny financial command center sitting right in your pocket. Use it!

Checking balances, monitoring transactions, transferring money, and keeping an eye on your accounts can help you catch problems before they become problems.

How to avoid the scare: Make checking your accounts part of your routine. Morning coffee + quick balance check = a surprisingly good financial habit.

Co-signing a loan for someone you love

Your best friend needs a loan. Your significant other needs a car. Your family member promises, “I'll make every payment. You don't have to worry!”

We hope they're right. But when you co-sign, their debt can become your debt. If they don't make the payments, you could be responsible for them, and your credit could take a hit, too.

How to avoid the scare: Before you enter that haunted house, make sure you understand exactly what you're agreeing to. If you couldn't comfortably make the payments yourself, that's a pretty big red flag.

Assuming your student loans are still in deferment

Student loans have a sneaky way of becoming something you don't think about… until suddenly you need to. If your loans have moved into repayment, ignoring them won't make the payments disappear.

How to avoid the scare: Know who services your loans, when payments are due, and whether anything about your repayment status has changed. Put important dates on your calendar and don't assume your loans are still on pause.

“Just do it!” without doing the math

We love a dream. Move to the new city! Get the apartment! Take the job you love! But before you make a major financial decision, run the numbers.

Can your income cover your rent, utilities, food, transportation, insurance, debt, and all the other little expenses that mysteriously appear once adulthood begins?

How to avoid the scare: Build the budget before you sign the lease. The dream is a lot more fun when the math works, too.

Not having the right insurance

Insurance isn't exactly exciting. I get it. But finding out you don't have the coverage you need after something goes wrong? Now, that's scary.

Home, auto, life, and other types of insurance can help protect you from financial disasters that could otherwise turn into nightmares.

How to avoid the scare: Review your coverage regularly and make sure it still fits your life. Big changes like buying a home, getting married, having kids, or changing jobs can be good reasons to take another look.

Not having your financial paperwork in order

Nobody wants to think about what happens if they're no longer able to make financial decisions for themselves. But avoiding the conversation doesn't make the paperwork less important.

Wills, beneficiaries, and powers of attorney can help make sure your wishes are known, and the right people are in place to help when needed. And here's one we don't talk about enough: choose your power of attorney carefully.

That's a huge responsibility. Make sure it's someone you trust and who understands what you're asking them to do.

How to avoid the scare: Review your beneficiaries and important legal documents regularly, especially after major life changes.

Falling for a scam because it looks legit

Scammers have gotten really good at making fake messages, emails, phone calls, and social media accounts look convincing. And yes, that includes messages from celebrities.

So, no. That probably isn't actually Brad Pitt asking you to send him money. And Bradley Cooper probably isn't sliding into your DMs because he desperately needs your help with an investment opportunity.

How to avoid the scare: Slow down. Don't click suspicious links, don't share your passwords or verification codes, and never send money because someone pressured you to act immediately.

If something feels weird, stop and verify it through a trusted source. Scammers love urgency. You are allowed to make them wait.

Forgetting your Savings Booster transfer

You decided you're going to save more. You opened the account. You made your first transfer. Then… life happened.

If you're working toward increasing your balance to earn more on your Savings Booster, forgetting that regular transfer can keep you from reaching your goal.

How to avoid the scare: Set up an automatic transfer and make saving part of your routine instead of something you have to remember every month.

The scariest mistake of all?

Thinking you have to figure everything out by yourself.

Money can be confusing. Credit can be confusing. Life definitely doesn't come with a user manual. If you're not sure where to start, ask for help.

A Financial Coach or another trusted financial professional can help you understand your options, make a plan, and hopefully keep some of those financial ghosts out of your closet.

Because the goal isn't to have a perfectly spooky October. It's to have a financially less-scary November.