A couple weeks ago I was at school taking a Saturday class. My wife had come to town with me, and we were planning to meet some friends for lunch. So over my first break I called to see where they were planning to eat, and they had decided on Chinese food. Knowing that the Chinese restaurant in town didn't take any type of plastic or out of town checks, I went to the student center, and withdrew some cash. Usually I would have had enough cash for the meal, but it was near the end of a busy week. The ATM fee for withdrawing the $20 was $2...pretty steep, but I knew it would be that high. Yesterday as I checked my account balance, I noticed a ATM charge separate from the $22 ATM withdrawal for $1.75 for using a 'foreign' ATM. Since I rarely withdraw cash out of ATMs I had forgotten that our bank charges us if we don't use their ATMs, and of course the bank whose ATM I use charges us as well. So to get $20 in cash I paid fees of $3.75 - that's 18.75%!!! Those rates compare to cash advances on a credit card! Now in all fairness, if I had withdrawn $100 the fees would have been the same, working out to 3.75%, but all I needed was a $20. The lesson of frugality, of course, is to either carry enough cash to pay for the meal, skip a meal, or go where you can use the debit/credit card you intended to use in the first place. Oh, and after all of that....we ate at Subway where I could have used my card.
Just another example that shows frugality often requires planning ahead to avoid unnecessary fees and costs.