Ugh. Another day, another company deciding they need MORE of our money. I just found out that HyperJar - you know, that prepaid card thousands of families use for budgeting - is about to slap users with a £3 monthly fee. My sister's been using it for her kids since 2021, and she texted me this morning absolutely fuming about it.
The change kicks in on June 3rd. Just weeks away, people!
Wait... What Even IS HyperJar?
For those who haven't encountered it yet, HyperJar is basically a free money management app with a prepaid Mastercard. My neighbor's kid got one when he was just 7 - they let children as young as six have accounts (supervised, obviously).
It works like those old-school jam jars our grandparents used for budgeting, except it's all digital. You split your cash into different "jars" for specific things - groceries in one, holiday savings in another, that sort of thing.
I actually downloaded it back in 2020 during lockdown when I was desperately trying to stop hemorrhaging money on random Amazon purchases. It helped... somewhat.
The Fee That's Got Everyone Talking
So here's teh deal. From June 3rd, they're introducing this £3 monthly "inactivity fee." It'll automatically come out of your balance if your account sits dormant for 12 months or longer.
Listen. I get that companies need to make money. But this feels like one of those sneaky moves hoping people forget about their accounts and then suddenly find themselves being charged.
My colleague Mark had something similar happen with an old Monzo pot he'd forgotten about. Poor guy.
Dodging the Charge (Easier Than You'd Think)
The good news? This fee is ridiculously easy to avoid.
Just. Use. Your. Account.
Literally ANY activity prevents the charge - sending money to someone, receiving money, shifting funds between your own jars, making a purchase, buying a voucher through the app... anything at all.
And you only need to do this ONCE every 12 months. That's it! I've set a calendar reminder on my phone for every 11 months just to be safe.
Should You Jump Ship?
I spent an embarrassing amount of time yesterday (we're talking 3 hours I'll never get back) researching alternatives after hearing this news. There are actually some decent options out there.
Starling Kite is completely free for kids aged 6-15, but you need a parent account with Starling. My brother-in-law swears by it for his twins.
NatWest's Rooster Money costs £19.99 a year unless you're already with NatWest, RBS, or Ulster Bank - then it's free. A colleague's daughter has been using it since she was 8, and apparently the savings features are pretty solid.
For us grown-ups, Tesco Clubcard Pay+ doesn't charge fees AND gives you Clubcard points. I've racked up about £43 in points since January just from regular spending.
The Bottom Line (Literally)
If you're actively using HyperJar, don't panic. This fee won't affect you.
If you've got an account gathering digital dust... either close it properly or set a reminder to do SOMETHING with it every few months.
And if you're thinking about signing up? The app still has some genuinely useful features - the shared expenses function saved my friendship group during our disaster of a holiday to Barcelona in 2022 (don't ask about the Airbnb situation... still traumatized).
Just make sure you actually USE what you sign up for. Or at the very least, remember to delete accounts you abandon.
Otherwise, companies like this will happily nibble away at your forgotten funds until there's nothing left.
Frequently Asked Questions
What are the benefits of having an emergency fund?
An emergency fund provides financial security by offering a safety net for unexpected expenses, such as medical emergencies or job loss. It helps prevent debt accumulation, reduces stress, and allows for better financial planning, ensuring that individuals can navigate unforeseen circumstances without significant hardship.
How can I improve my credit score?
To improve your credit score, make timely payments on all debts, reduce credit card balances, avoid opening unnecessary credit accounts, and regularly check your credit report for errors, disputing any inaccuracies. Maintaining a mix of credit types and keeping old accounts open can also be beneficial.
What are credit scores and why are they important?
Credit scores are numerical representations of an individual's creditworthiness, calculated based on credit history, payment behavior, and debt levels. They are important because they impact the ability to obtain loans, credit cards, and favorable interest rates, affecting overall financial health.
What are the different types of money?
The main types of money include commodity money, which is based on physical goods like gold or silver; fiat money, which is government-issued currency not backed by a physical commodity; and digital currency, which exists electronically and is often decentralized, such as cryptocurrencies.
How does inflation affect the value of money?
Inflation refers to the general rise in prices over time, which erodes the purchasing power of money. As inflation increases, each unit of currency buys fewer goods and services, meaning that the value of money decreases in terms of what it can purchase.
What is a budget deficit?
A budget deficit occurs when a government's expenditures exceed its revenues over a specific period, usually a fiscal year. This can lead to increased borrowing and national debt if not addressed through spending cuts or revenue increases.
What are the main functions of money?
The primary functions of money are as a medium of exchange, facilitating trade; a unit of account, which provides a standard measure of value; a store of value, allowing individuals to save and transfer purchasing power over time; and a standard of deferred payment, enabling credit transactions.
Statistics
- According to the World Bank, around 1.7 billion adults worldwide remain unbanked, lacking access to basic financial services.
- According to a Gallup poll, 56% of Americans report that their financial situation is better than it was a year ago.
- The average return on investment for the S&P 500 over the past 90 years is about 10% per annum.
- As of 2021, the median household income in the U.S. was approximately $67,521, according to the U.S. Census Bureau.
- As of 2021, the average student loan debt for recent graduates was approximately $30,000, according to the Federal Reserve.
- The average cost of raising a child in the U.S. is estimated to be around $233,610, according to the U.S. Department of Agriculture.
- Research by the National Bureau of Economic Research found that individuals who receive financial education are 25% more likely to save than those who do not.
- According to the Federal Reserve, approximately 39% of Americans do not have enough savings to cover a $400 emergency expense.
External Links
How To
How To File Your Taxes Accurately
Filing your taxes accurately is essential to avoid penalties and ensure compliance. Start by gathering all necessary documents, including W-2s, 1099s, and any receipts for deductible expenses. Choose the appropriate filing method, whether using tax software, hiring a tax professional, or filing manually. Familiarize yourself with the tax deductions and credits available to maximize your refund or minimize your liability. Double-check your calculations and ensure all information is accurate before submission. If you are unsure about specific items, consider consulting IRS guidelines or a tax professional for clarification. Lastly, keep copies of your tax returns and supporting documents for future reference.
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