how many times did you overdraft last year?

If I asked you how many times you were hit with overdraft fees in the last year, you might give me a nasty look and tell me that is a rude thing to ask. You’d be right, and fortunately for both of us, I would never ask you. Luckily we have polls to give us information about these sorts of things.

Warning: this is a bit of a rant. I just took a quick poll on USAA (my credit union/insurance company) and guessed that the average number of times the average household had to pay an overdraft fee last year would be about 4 times. I was wrong. I was also really disturbed by the actual outcome.

You’re an optimist, aren’t you? Actually, the average U.S. household with a banking account incurred nearly 13 overdraft fees in 2009, according to management advisory firm Bretton Woods Inc. Add it all up, and those fees cost Americans a whopping $38 billion they could’ve spent elsewhere.

WHAT?! 38 billion dollars!! Between that money and parking tickets, it’s a wonder we as a country are in the sticky financial situation we are. But I’m no economist. All I know is, this is such an easy problem to resolve and it blows my mind that Americans (no idea what the spending habits overseas are like) are so undisciplined that we can’t even manage to keep some reserve funds to cover fees like this. Because it’s not the fact that we overdraft – I mean, it happens sometimes, even to responsible folks who try and keep the bulk of their money in interest-earnings accounts versus non-interest-earning checking accounts. But most banks today offer overdraft protection, like USAA who pulls from my emergency fund if and when I ever get low. Why is it so tough to set a dollar amount and say, “Ok, I will not let my balance dip below this line.” Or even to set aside a few hundy in a savings account that can transfer funds in a temporary lapse of spending judgment?

By the way – I totally understand that some people simply do not have the means to have emergency funds, but I would argue that given our silly lifestyle of living beyond our means and the amount of money we spend on cars, clothes, fancy food, spas, alcohol, etc… there is no reason that $38 billion number should be so high.

I also realize that I am in the minority as a person who enjoys budgeting, spreadsheets and forecasting net worth, etc. – but it doesn’t take a total nerd to be able to run a proper household budget, with goals and safety nets. There are like a thousand free downloadable programs and websites (like mint.com) that can make it as easy as 1-2-3. It’s REALLY NOT THAT HARD. And I’m telling you, the relief you will feel from knowing that you’ve got cash in case of a REAL emergency (not of the Louis Vuitton nature) is truly life changing.

Is this little statistic grossing anyone else out or is it just me? Why do you think people prefer paying overdraft fees and being strapped for cash to curbing their frivolous spending habits and saving money?