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Stick to a Budget With Your Debit Card

Your debit card can be a surprisingly effective budgeting tool.

by Navy Federal on November 21, 2018 | Tag(s): Personal Finance

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Have you ever put yourself on a budget but found it too hard to stick to? Maybe you tried using cash only but realized it was inconvenient. Or, maybe you tried to use a credit card responsibly but kept going over budget because you didn’t have to pay for your purchases right away. If any of these sound familiar, consider using your debit card as an effective way to budget.

Here are some tips to get you started:

Set Up Alerts to Track Spending and Monitor Your Accounts

An important part of any budget is to track how much you’re spending. With Navy Federal, you can manage your accounts through digital banking* and set up alerts to notify you when you go over a spending threshold. You can also choose to get texts when your balance is low or a deposit has posted. Learn more here setting up alerts with mobile banking.

Setting up alerts is also a great way to monitor any fraudulent activity on your account. If you see a charge you didn’t make, notify us immediately; our Zero Liability policy protects you from reported, unauthorized charges. And, we’re monitoring your accounts 24/7 with state-of-the-art fraud monitoring systems.

For even more security, Navy Federal limits the amount of money you can withdraw or spend each day. Most of our accounts have a daily spending limit of $3,000 and a daily cash withdrawal limit of $600. These limits are meant to protect you if your card is lost or stolen. If you need to increase your daily limit, call us at 1-888-842-6328.

If your card is stolen—or you’ve temporarily misplaced it—you can freeze it and unfreeze when you locate it.

Enjoy Convenience Without Debt

When you use a debit card, money is pulled directly from your checking account—unlike a credit card, where you borrow money and then repay it. By choosing to use a debit card for purchases and bills, you may find it easier to stick to a budget since you’ll see the impact on your checking account immediately. And, while using cash has the same effect, there’s no doubt that debit cards are more convenient—especially for shopping online. Don’t worry about using your card online or anywhere else you choose to shop—our Zero Liability policy makes sure you won’t lose your money if you’re a victim of fraud.

Build Your Savings

Saving money for a rainy day should be a priority with any budget. You can make it easier to save by paying yourself routinely every month. Just schedule an automatic transfer from your checking account—the one linked to your debit card—to your savings account every time you get paid. You’ll end up saving effortlessly.

Learn More About Your Navy Federal Debit Card

Your Navy Federal Debit Card is more than just a great budgeting tool. It’s also a convenient and safe way to shop online or in person at millions of merchants worldwide. You can use it for everyday purchases, no matter how big or small. For more information, visit our web page about Navy Federal debit cards.

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This article is intended to provide general information and shouldn't be considered legal, tax or financial advice. It's always a good idea to consult a tax or financial advisor for specific information on how certain laws apply to your situation and about your individual financial situation.