Reading Time: 13 minutes 25 Sneaky Fees Companies Hide From You (And Ways To Avoid Them)
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Hidden fees can quietly erode your family’s budget, leaving you wondering where your money went. In this guide, we will reveal 25 common hidden fees and offer practical tips to avoid them.
Oh, and of course these fees aren’t all hidden. Lawyers make sure they are disclosed. But they might as well be hidden because we don’t often see the fee when prices are advertised broadly.
We also included a video at the end that is worth checking out.
Table of Contents
1. Bank Fees
Bank fees can be a sneaky drain on your finances. Monthly maintenance fees, which often hover around $5, might not seem like much but can add up over time.
Overdraft fees, typically $35 per incident, can catch you off guard when your account dips too low. Even ATM fees, usually $2.50 per transaction, can accumulate if you’re frequently using out-of-network machines.
Tips to Avoid Bank Fees
Opt for banks that offer no-fee or low-fee accounts to minimize costs. Setting up alerts for low balances can help you avoid overdraft fees. Additionally, sticking to in-network ATMs can save you from those pesky transaction fees.
Estimated Savings: Up to $50/month
2. Subscription Services
Subscriptions can be a stealthy budget buster. Gym memberships at $40 a month, streaming services at $10, and magazine subscriptions at $5 can silently drain your bank account if you’re not using them.
Strategies to Manage Subscriptions
To keep these costs in check, regularly review your bank statements to spot any unused subscriptions. Subscription management apps can also help track and manage recurring expenses, making it easier to cancel services you no longer need.
We have a separate credit card and checking account just for our subscriptions and recurring expenses. It makes it very easy to track.
Estimated Savings: Up to $55/month
3. Hidden Charges On Utility Bills
Utility bills often come with hidden charges like service fees ($10/month), late payment fees ($15 per incident), and seasonal rate changes that can add an extra $20 to your bill during peak months.
Ways to Minimize Utility Costs
Setting up autopay can help you avoid late payment fees. Negotiating rates with your providers can lead to better deals, and implementing energy-saving practices can reduce your overall consumption.
Estimated Savings: Up to $45/month
Related: 15 Do It Yourself Solutions for Cutting Your Monthly Electric Bill
4. Sneaky Credit Card Fees
Credit card fees can be surprisingly costly. Annual fees can reach $95 per year, foreign transaction fees can take 3% of every transaction abroad, and late payment fees can cost $35 each time you miss a payment.
Tips to Reduce Credit Card Fees
Choose credit cards that have no annual fees and pay your balance in full each month to avoid interest and late fees. Understanding your card’s fee structure can also help you steer clear of unexpected charges.
Estimated Savings: Up to $15/month
Related:
- How Many Credit Cards Is Too Many? An Expert Answers.
- Finance Expert (With 820+ Credit Score) Debunks Credit Card Myths
5. Common Hidden Mobile Fees
Mobile phone bills can include hidden fees like overage charges ($15/GB), roaming fees ($10/day), and premium service subscriptions ($5/month).
How to Lower Mobile Phone Costs
Reviewing and understanding your billing statement can reveal areas to cut costs. Switching to a family plan can provide discounts, and using Wi-Fi for calls and data can help you avoid overage and roaming charges.
Estimated Savings: Up to $30/month
6. Hidden Costs in Internet and Cable Services
Internet and cable bills often come with hidden costs such as equipment rental fees ($10/month), installation fees ($50), and additional channel packages ($20/month).
Reducing Internet and Cable Expenses
Negotiating with your provider can lead to better deals. Returning rented equipment and cutting the cord in favor of streaming services can also reduce your monthly expenses.
I am currently shopping for a new internet provider. I’m tired of Spectrum. Let me know if you have a recommendation.
Estimated Savings: Up to $30/month
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7. Overlooked Insurance Fees
Insurance policies can include hidden fees like administrative fees ($5/month), unnecessary policy add-ons ($10/month), and payment processing fees ($2/month).
Saving on Insurance
Bundling multiple policies with one provider can result in discounts. Shopping around for better rates and reviewing your policy details can help you avoid paying for unnecessary add-ons.
Estimated Savings: Up to $15/month
Related: How To Save On Car Insurance: 13 Ways To Lower Car Insurance Premiums
8. Grocery Bills
Grocery shopping can come with hidden costs such as delivery fees ($10/order), convenience packaging ($5/order), and loyalty card traps ($5/month).
Tips to Cut Grocery Costs
Buying in bulk, using coupons and cashback apps, and planning meals with a shopping list can significantly reduce your grocery bill.
Estimated Savings: Up to $20/month
Related: The Art of Frugal Food Shopping: How To Save On Groceries
9. Childcare and School Fees
Childcare and school expenses can include activity fees ($20/month), supply costs ($10/month), and lunch program fees ($15/month).
Reducing Childcare and School Expenses
Participating in parent-teacher organizations, seeking community resources, and applying for scholarships and financial aid can help mitigate these costs.
Estimated Savings: Up to $30/month
10. Unseen Automotive Fees
Owning a car involves hidden fees such as maintenance and service fees ($50/month), registration and inspection fees ($10/month), and roadside assistance fees ($5/month).
Cutting Down Car Expenses
Regular maintenance can prevent costly repairs. Comparing insurance rates and using public transportation when possible can also help reduce car-related expenses.
Estimated Savings: Up to $30/month
Related: How To Save Money And Take Care Of Your Health
11. Hidden Health and Wellness Fees
Healthcare often includes hidden costs like co-pays and deductibles ($20/month), prescription markups ($10/month), and gym initiation fees ($50/year).
Saving on Health and Wellness
Using generic medications, exploring telehealth options, and seeking out community fitness programs can help you save on health and wellness expenses.
Estimated Savings: Up to $20/month
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12. Overlooked Entertainment and Leisure Fees
Entertainment costs can include ticket service fees ($5/ticket), membership renewal fees ($10/month), and in-app purchases ($5/month).
Managing Entertainment Expenses
Using discount ticket sites, setting spending limits on apps, and exploring free or low-cost community events can help manage these costs.
Estimated Savings: Up to $20/month
13. Other Common Hidden Fees
Various services can come with hidden fees such as pet care fees ($20/month), gift wrapping fees ($5/occasion), and administrative fees ($10/month).
General Tips to Avoid Miscellaneous Fees
Always reading the fine print, asking for fee waivers or discounts, and keeping an eye on small charges in bills can help you avoid these miscellaneous fees.
Estimated Savings: Up to $15/month
14. Cash Advance Fees
Cash advance fees can be surprisingly high, often around 3% to 5% of the transaction amount. Additionally, interest on cash advances typically starts accruing immediately, without a grace period.
Tips to Avoid Cash Advance Fees
Avoid using your credit card for cash advances whenever possible. Instead, use your debit card or withdraw cash from your bank account to bypass these costly fees.
Estimated Savings: Up to $30/month
15. Inactivity Fees on Financial Accounts or Prepaid Cards
Some financial accounts and prepaid cards charge inactivity fees if you don’t use them for a certain period. These fees can range from $5 to $10 per month.
How to Avoid Inactivity Fees
Regularly use your accounts to keep them active. If you no longer need a particular account or card, consider closing it to avoid unnecessary fees.
Estimated Savings: Up to $10/month
16. Airline Baggage Fees
Airline baggage fees can quickly add up, with charges for checked bags typically ranging from $25 to $50 per bag, each way.
Tips to Save on Baggage Fees
Travel light with a carry-on bag or choose airlines that offer free checked bags. Look for credit cards that offer baggage fee reimbursement.
Estimated Savings: Up to $50/trip
Related: 23 Top Travel Tips From Frugal Frequent Flyers (With Video)
17. Hidden Hotel Parking Fees
Hotels in urban areas often charge parking fees, which can range from $15 to $50 per night.
How to Avoid Parking Fees
Research hotels that offer free parking or find nearby public parking options that might be cheaper. Inquire if the hotel can waive the fee for you. I ask hotels to waive this fee every time I travel. They rarely say no.
Estimated Savings: Up to $50/night
18. Hotel Wi-Fi Fees
Some hotels charge for Wi-Fi access, with fees ranging from $10 to $20 per day.
Tips to Waive Wi-Fi Fees
Always ask if the hotel can waive the Wi-Fi fee. Many hotels will accommodate this request, especially for loyalty program members. An even better solution is some libraries lend wi-fi hot spots. We borrow one whenever we travel.
Estimated Savings: Up to $20/night
19. Convenience Fees When Paying Online
Convenience fees for online payments can range from $1 to $5, often applied by service providers or ticket sellers.
Avoiding Convenience Fees
Look for payment methods that don’t incur these fees, such as paying in person or using ACH transfers. Some companies may waive these fees upon request.
Estimated Savings: Up to $5/month
20. Administrative Fees on Insurance Policies
Insurance policies often come with administrative fees that can add $2 to $10 to your monthly premium.
Reducing Insurance Administrative Fees
Review your policy and discuss these fees with your insurance provider. Sometimes, bundling policies can eliminate or reduce these fees.
Estimated Savings: Up to $10/month
21. Administrative Fees on Investment Accounts
Investment accounts may charge administrative fees, including a percentage of your assets and a flat monthly fee, potentially costing $10 or more monthly.
One of my roles in my Financial Services career was designing Investment Advisory Accounts. Our accounts charged roughly 1.5% of the client’s assets. We decided to add on an “admin fee” as an additional revenue source.
Cutting Down Investment Fees
Compare investment programs and choose those with lower or no administrative fees. Consolidate accounts to simplify fee structures.
Estimated Savings: Up to $10/month
22. Fees on Rental Insurance
Rental insurance policies can include hidden fees for processing and administrative costs, adding $2 to $5 to your monthly bill.
Saving on Rental Insurance
Shop around for rental insurance providers that offer transparent pricing with minimal fees. Consider bundling with other insurance policies for discounts.
Estimated Savings: Up to $5/month
23. Credit Monitoring Fees
Credit monitoring services can charge monthly fees ranging from $10 to $30.
Tips to Avoid Credit Monitoring Fees
Use free credit monitoring services or check your credit reports periodically for free through AnnualCreditReport.com.
Estimated Savings: Up to $30/month
24. Shipping and Handling Fees
Online purchases often come with shipping and handling fees, which can add $5 to $15 to your order.
How to Save on Shipping Fees
Look for free shipping offers, combine orders to meet free shipping minimums, or pick up items in-store when possible.
Estimated Savings: Up to $15/month
25. Tips as Expected Fees
Tips are now expected for many services, ranging from dining out to ride-sharing, often adding 10% to 20% to your bill.
Managing Tip Costs
Be mindful of the services you tip for and adjust the amount based on the quality of service. Look for opportunities where tipping is optional or included in the service charge.
Estimated Savings: Up to $30/month
Conclusion
Being vigilant about hidden fees is crucial for maintaining a healthy budget. By implementing these tips, you can save money and contribute to a more budget-friendly and fulfilling family life. Start today and watch your savings grow!
We also created this video about fees that companies try to hide from us.
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AI was used for light editing, formatting, and readability. But a human (me!) wrote and edited this.
