The 12 Dumbest Things Americans Waste Money On (No, It’s Not Coffee)

Greensprout TeamUpdated June 06th 2025

Let’s be real: managing money can feel like a full-time job. Between bills, credit cards, subscriptions, and the occasional impulse buy, it’s easy to lose track.

I’ve spent years digging into the most common ways people waste money - and trust me, some of them are shockingly easy to fix.

Here are the biggest money-wasters I’ve found (and what to do instead):

1. Auto insurance: Cut Your Payment By $400+/year*

Sticking with the same auto insurance year after year?

It could be costing you.

The average American family still overspends by $416* or more per year on car insurance - often without realizing it.

I usually pull up Coverage.com - a free site that compares offers from trusted insurers. It takes just 2 minutes to see what’s out there.

Here’s how:

• Click below to open Coverage.com
• Answer a few quick questions
• Compare real offers instantly

That’s all it takes. You’ll likely save yourself a bunch of money.

See how much you can save on car insurance

*Savings vary by zip code and driving record.

2. Getting price-gouged when you shop online

You might be surprised how often you're overpaying on Amazon and other retailers. Big stores like Amazon know that nobody has time to price shop across dozens of websites, so there's often little incentive for them to offer their lowest prices.

I typically hate browser extensions with a fiery passion, but if you don't have Capital One Shopping installed yet, do yourself a favor and add it.

When you shop online (on Amazon or elsewhere) it will:

• Auto-apply coupon codes to potentially help you save money
• Compare prices from other sellers to help ensure you're not missing out on a better deal

Here's a quick example of how it works:

Whenever the extension finds an available discount, you'll see a little savings alert pop up. For instance, here you can save $40 on this coffee maker.

Here's a link to add Capital One Shopping, if you're interested.

3. The savings account upgrade most people never think to make

Most people don't realize this: some high-yield savings accounts are offering up to 4.15% APY as of July 2025, while the national average sits around 0.57% APY*, according to the FDIC.

That’s about 7 times higher returns for doing absolutely nothing different.

Here’s the math: $10,000 in a regular savings account earns you $57 per year. The same money in a high-yield account? $444 annually. That’s an extra $387 just for banking somewhere smarter.

See which banks are paying the most on savings right now

4. Still overpaying on your home insurance?

Home insurance protects your biggest asset — but that doesn’t mean you should overpay for it.

Most people don’t realize they can switch providers anytime, and potentially save hundreds per year without losing coverage.

We’ve found a top-rated tool that lets you compare multiple home insurance offers in one place. Just enter your zip and basic info — it only takes a minute.

Here’s the home insurance comparison site I typically use: Link

5. Need cash? Your home might already have it.

If you’ve built up equity in your home, a HELOC lets you borrow against it — kind of like a credit card, but typically with better interest rates and terms.

It’s a flexible way to access funds for home improvements, debt consolidation, or other expenses without refinancing your existing mortgage.

How it works:

• You borrow only what you need, when you need it
• Pay interest only on what you use
• Access funds as needed during your draw period

Use LendingTree’s calculator to see how much equity you could access:

• Enter your home details
• Compare offers from multiple lenders
• Check rates with no credit score impact

Calculate your home equity options

6. Credit Card Debt? Pay 0% Intro APR interest Until Nearly 2027

Still paying sky-high interest on credit card debt? You may have better options — including 0% intro APR offers that last up to 21 months on balance transfers.

We’ve partnered with Bankrate to spotlight some of the top-rated balance transfer credit cards of 2025 — all in one place. These cards can give you the breathing room to finally get ahead, without the monthly interest charges holding you back.

• ✔️ Compare top-rated balance transfer cards
• ✔️ See intro APR terms as long as 21 months
• ✔️ No impact to your credit score to explore options

Click below to view the current top balance transfer offers — curated by Bankrate and presented in partnership with Greensprout.

View Balance Transfer Card Offers

7. Home repair bill? Let someone else foot the bill.

Your AC breaks in the summer. Your fridge dies without warning. Stuff like this happens more than you think — and it’s almost never cheap.

That’s where a home warranty helps. It’s like backup insurance for appliances, plumbing, electrical, and more — stuff your homeowners insurance won’t cover.

American Home Shield is one of the largest and most trusted names in the space, with thousands of service techs ready to handle the job — fast.

Want to see what coverage looks like?

• Just enter your zip code
• Compare plans in your area
• Get a quote in seconds

It could save you hundreds the next time something breaks down. Get a free quote

8. Protect Your Vehicle from Expensive Repairs

That dreaded check engine light? Never good — especially if your warranty’s expired.

Endurance helps drivers avoid costly repairs with extended auto warranty plans that cover engines, transmissions, brakes, air conditioners, and more.

They’ve protected millions of vehicles over nearly 20 years and earned top reviews on Google.

Just enter your vehicle details and get matched with a plan that fits your car and your budget. Coverage is affordable, flexible, and built to save you money.

Don’t let repairs drain your savings.

Get a free vehicle quote

9. Get Rid Of $20K Or More In Credit Card Debt

First Advantage Debt Relief helps people with unsecured debt (like credit cards, personal loans, or medical bills) reduce what they owe — sometimes by around 23% after fees.

Here's how to check:

• Go to First Advantage Debt Relief’s site
• Answer a few questions
• See if you qualify instantly

Best of all? There are zero fees until your debt is resolved, and you could be debt-free in as little as 24–48 months. To get started, just answer a few simple questions. It only takes 30 seconds to see if you qualify.

Here’s a link to First Advantage Debt Relief

10. Need Cash Fast? Personal Loans Are Cheaper Than You Think

When unexpected expenses hit, many people reach for their credit cards — even though they're often the most expensive option.

Personal loans can be a smarter alternative. Unlike credit cards, they come with fixed interest rates and predictable monthly payments, so you know exactly when your balance will be paid off. For borrowers with good credit, rates can be significantly lower than the average credit card APR.

Personal loans are commonly used to consolidate high-interest debt, cover medical bills, or finance major expenses. Loan amounts typically range from $2,000 to $100,000, with repayment terms of two to seven years.

Bankrate's personal loan comparison tool lets you view offers from multiple lenders in one place. Checking available rates is fast and won't impact your credit score.

See Available Personal Loan Options

11. Lock In 3.75%+ Returns With Zero Risk to Your Principal

Some savings accounts are still paying next to nothing — but that's not the case everywhere.

Right now, certain certificates of deposit (CDs) are offering returns above 3.75% APY, while keeping money fully FDIC- or NCUA-insured. For many savers, that means higher returns without taking on market risk.

CDs work simply: you deposit funds for a set period — often just a few months to a few years — and earn a fixed rate that doesn't change if interest rates drop. When the term ends, you get your deposit back plus interest.

With rates starting to trend lower, banks have begun quietly reducing CD yields. Savers looking for stability are locking in today's higher rates while they're still available.

Bankrate tracks CD rates across banks and credit unions so you can see which terms are offering the best returns.

See today's top CD rates

12. Your Retirement Savings Sitting in Cash While Inflation Eats It Away?

Most people don't realize this: You can move part of your IRA or 401(k) into physical gold and silver — completely tax-free — to protect against inflation and market volatility.

It's called a Gold IRA, and it's one of the smartest hedges wealthy investors have been using for decades.

Here's why it matters: When the stock market tanks or inflation spikes, gold historically moves in the opposite direction. It's portfolio insurance you can actually hold in your hand.

Gold Trust makes the rollover simple:

• IRA-eligible gold and silver options
• Tax-free transfer from existing retirement accounts
• Professional guidance through every step
• No penalties when done correctly

You maintain all the same tax advantages of a traditional IRA while diversifying into an asset that's held value for thousands of years.

Most people wait until the next market crash to think about this. Smart money does it before.

Get a free consultation

Today’s Top Home Equity Financing Offers

See how much you could borrow (and at what rate) by comparing real-time HELOC and home equity loan offers from trusted lenders. Rates are updated daily and checking won’t impact your credit.