5 Bad Financial Habits Americans Don’t Realize Cost Them Thousands
5 Bad Financial Habits Americans Don’t Realize Cost Them Thousands
Emily Fowler Mon, February 24, 2025 GOBankingRates
More Americans are focusing on their finances in 2025 than they have in the past 10 years, according to a recent study from Allianz Life. But while many plan to improve their financial stability, stress levels around finances are still high, with only 16% of people saying they’re less stressed than last year.
Here are five financial habits that could be contributing to those stress levels and costing thousands.
Excessive Spending on Nonessentials
An occasional treat isn’t the problem. It’s the frequent, mindless purchases that add up. The study found 30% of Americans admit to spending too much on things they don’t need. Anything from online impulse buys to yet another unused subscription can snowball.
Take that coffee habit. Say you buy a $4.75 coffee every week day. That will cost over $1,000 a year. With coffee prices increasing after having just reached an all-time high, according to Business Insider, that habit could cost even more in 2025!
Neglecting Savings
A significant 28% of Americans save nothing, while 27% save less than they could, per Allianz. Without a habit of consistent saving, even a minor financial setback can lead to debt. And with 49% worrying about their income and retirement income, a lack of savings can be added stress.
Automating transfers to a savings account ensures money is set aside before it’s spent, and even starting with small, regular deposits builds up over time.
Carrying Credit Card Debt Too Long
High-interest debt is a financial sinkhole, yet 23% of Americans aren’t paying down debt fast enough, according to the study. Interest charges quickly inflate balances, making it harder to get ahead. The average credit card interest rate as of Feb. 17 was 28.7%, according to the Forbes Advisor weekly credit card rates report.
Making monthly payments of $200 on a credit card balance of $7,500 with a 28% interest rate (APR) would take nearly eight years to clear and mean more than $10,000 in interest paid.
TO READ MORE: https://finance.yahoo.com/news/5-bad-financial-habits-americans-170051610.html
