Study says fewer bank accounts is better for saving

Study says fewer bank accounts is better for saving

Posted: Updated:

How many bank accounts do you have?  Most of us have a few.  But it might be time to start paring down.  

A new study indicates that getting rid of some of your bank accounts might help you save money.  A University of Kansas business professor writes that conventional wisdom is that people who spread their earnings across different accounts actually increase their savings.  But he says it doesn't necessarily work that way.  

Instead, the professor says the less complex our finances, the more we save.  The researcher says that people find spending more fun than saving, so they'll use creative ways to spend more.  They'll take a little from one account, and a little more from another and another.  The extra spending doesn't seem like much when it is spread out.

If you just have one primary account, the study says you'll know exactly what money is going out, and you'll be more likely to think about what you're buying.  This is important because Americans don't save enough money.

  • I-Team Story ArchiveMore>>

  • Get Financially Fit: A Step-By-Step Plan

    Get Financially Fit: A Step-By-Step Plan

    Monday, April 14 2014 9:15 AM EDT2014-04-14 13:15:13 GMT
    April is Financial Literacy Month, so it's time to think about getting financially fit.  Let's start with two questions. Do you know how much you spend each month?  How much of your check should you save?
    April is Financial Literacy Month, so it's time to think about getting financially fit.  Let's start with two questions:  Do you know how much you spend each month?  How much of your check should you save?
  • FOX 5 I-Team

    DON'T MISS: Tax Deductions and Credits

    DON'T MISS: Tax Deductions and Credits

    Friday, April 11 2014 8:48 AM EDT2014-04-11 12:48:55 GMT
    Let's finish up our tax time filing tips that we've offered this season with a quick look at deductions and credits too many folks forget.
    Let's finish up our tax time filing tips that we've offered this season with a quick look at deductions and credits too many folks forget.
  • FOX 5 I-Team

    IRS: Two Scam Warnings

    IRS: Two Scam Warnings

    Monday, April 7 2014 10:44 AM EDT2014-04-07 14:44:51 GMT
    We have two warnings coming from the IRS.  The first one is what investigators call the "largest ever" phone fraud scam targeting taxpayers.
    We have two warnings coming from the IRS.  The first one is what investigators call the "largest ever" phone fraud scam targeting taxpayers.
  • Contact the FOX 5 I-Team

    * denotes required fields

    We're sorry, but only one entry is allowed per person.
    Thank you for your continued interest.

    Thanks for contacting FOX 5.  To reach our newsroom by phone, please call (404) 898-0100.

  • Good Day ArchiveMore>>

  • Improve your commute with the "One Bus Away" app

    Improve your commute with the "One Bus Away" app

    Thursday, April 17 2014 9:03 AM EDT2014-04-17 13:03:23 GMT
    Don't you hate when you're waiting for mass transit and have no idea when that train or bus will show up? Now, there's an app for that and it's saving people time and money.
    Don't you hate when you're waiting for mass transit and have no idea when that train or bus will show up? Now, there's an app for that and it's saving people time and money.
  • Brewery Celebrates The "Sweet" Life At 420 Fest

    Brewery Celebrates The "Sweet" Life At 420 Fest

    Thursday, April 17 2014 8:45 AM EDT2014-04-17 12:45:46 GMT
    A new venue and a major headlining band are set to make this year's 10th Annual SweetWater 420 Fest the biggest yet.
    A new venue and a major headlining band are set to make this year's 10th Annual SweetWater 420 Fest the biggest yet.
  • FOX Medical Team

    Eat for the Test!

    Eat for the Test!

    Thursday, April 17 2014 7:48 AM EDT2014-04-17 11:48:58 GMT
    If you want your student to test well, Cheryl Williams, a registered dietitian with Children's Healthcare of Atlanta says breakfast is the most important meal.
    If you want your student to test well, Cheryl Williams, a registered dietitian with Children's Healthcare of Atlanta says breakfast is the most important meal.
Powered by WorldNow

WDCA My20 & my20dc.com
5151 Wisconsin Ave NW
Washington, DC 20016

Phone: (202) 244-5151
Email Us

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices