6 Bad Money Habits to Break

What’s more, older adults are more vulnerable to cybercrime. According to the Federal Bureau of Investigation’s Internet Crime Complaint Center, Americans age 60 and older lost $4.8 billion in 2024.

You can help prevent crooks from unlocking your accounts by implementing multifactor authentication, which essentially double-checks that it’s you who’s trying to access the account, and not reusing passwords. 

Consider using a password manager like Bitwarden, 1Password or LastPass to save your login information and protect your passwords. Most password managers charge a small monthly fee.

3. Helicopter parenting your portfolio

Constantly checking your account balances when you’re worried about the stock market’s direction is a good way to give yourself heartburn. More importantly, you risk succumbing to the temptation to exit the market in a panic — almost always a money-losing move.

Don’t get hung up on day-to-day movements of stocks. “Checking portfolios during volatile market environments can lead investors to make emotional decisions that usually work against them,” says Jeff Buchbinder, chief equity strategist at wealth and investment management firm LPL Financial. “When markets are volatile and stocks are down, that’s when people get the most nervous, and that tends to be the worst time to sell.”

Historically, the worst days for stocks have been followed by the best days. If you cash out at the bottom, you lose the ability to gain those big recoveries.

4. Putting your nest egg in a slow cooker

While too much vigilance can be a bad habit for your investment accounts, a set-it-and-forget-it approach can also be a recipe for trouble. Changes in market conditions can cause the percentage of your money allocated to different investments to shift, potentially leaving you with more risk than you want to take on.

Weese advises checking your portfolio every few months to ensure that your investment allocations are where you want them to be. If you have a financial adviser, they can help you with this. If you’re self-managing your investments, Weese says software programs such as Monarch, Wealthfront and Empower can help you make adjustments based on your risk tolerance.

5. Chasing credit card sign-up promotions

Applying for credit cards that dangle handsome sign-up bonuses, like buckets of frequent-flier miles, might seem like a smart move, but it can hurt your finances.

The fine print on those offers generally requires you to charge hundreds, if not thousands, of dollars within the first few months of opening the card. You could find yourself stretching your budget or buying things you don’t need to meet that threshold.

Bonus chasing can also hurt your credit score. Each time you apply for a credit card, the lender conducts a “hard pull” of your credit file. According to Credit Karma, each hard inquiry dings your credit score by a few points, depending on your credit profile. And if you’re a serial card-hopper, be warned: Multiple hard inquiries in a short period do even more damage.

Opening a slew of new credit cards also has the cumulative effect of lowering your average account age, which can harm your credit score.

6. Pinching every penny

While frugality is a virtue, it’s possible to have too much of a good thing, says Nick Campanale, senior vice president at Citizens Private Wealth. He sees clients who, after decades of socking away money for retirement, are fearful about spending the nest egg they’ve worked so hard to build.

“I’ve seen people who will underspend,” he says. “They don’t actually enjoy the money.”

Being a cheapskate can also backfire in certain situations, like if you’re avoiding essential home repairs to save money or purchasing groceries in bulk that you won’t eat before they expire.

The bottom line? Little changes to your everyday activities can help shore up your financial security.