Seems everybody's pinching their pennies these days as the economy continues to be a major source of concern. Unemployment's rising, house prices are slipping and retail sales are weak.

Fees at bank machines aren't a problem for some users, Consumers' Association president Bruce Cran says. (Paul Sakuma/Associated Press)Although more than nine Canadians out of 10 are working, we continue to worry about our jobs — and our finances.

But are we worried enough to do something about it — like walk an extra two blocks to avoid paying an extra fee for using another financial institution's network of bank machines?

Avoiding ABM fees and taking a few minutes every month to review your bank statement are probably two of the easiest ways of making sure that you're not parting ways with more of your hard-earned dollars than you have to.

Using another financial institution's money machine can add several dollars in fees you shouldn't be paying. While it may not seem like much at the time, do it several times a month and you could wind up out of pocket a few hundred dollars a year.

Your bank account statement can be a snapshot of the financial manager that you are. Besides telling you where your money's going, it'll tell you whether you're dispersing your cash efficiently.

Chances are you pay a monthly fee for a basket of services attached to your account. Lots of activity on that account? Then your service package should include unlimited transactions — and maybe even free use of bank machines that aren't in your bank's network. You can compare bank accounts at the Financial Consumer Agency of Canada website.

'Don't let your bank account go into overdraft. Drop the service and save the fee'

But full-service packages may cost up to $25 a month — a steep price unless you're making full use of all the services. Drop down a tier and you may be paying somewhere around $13 a month. But be careful. If you've signed up for overdraft protection, you're probably paying an extra $3 a month for the luxury of being able to take out more money than you actually have in your account. And you'll be paying a steep price to do that. On top of the monthly fee, you'll pay interest on the overdrawn amount. The rate is usually 21 per cent or more — that's higher than that gold credit card burning a hole in your wallet.

The solution? Don't let your account go into overdraft. Drop the service and save the fee.

An even better solution — albeit one that not everyone can manage — is to maintain enough of a balance in your account that the bank will waive your monthly fee. That minimum balance could be a couple of thousand dollars, which may sound steep. But you'd actually be doing better by parking $3,000 in your chequing account to avoid the fee than by sticking it into a Guaranteed Investment Certificate that might pay you two per cent.

The GIC would pay you $60 after a year, while you could save around $150 in account fees by maintaining the minimum balance. That's a return of five per cent.

If you have an investment account, make sure you're aware of the fees associated with managing your own money. Some institutions will waive certain fees if you sign up to receive your statements and receipts online or maintain a minimum balance in your account.

Fix those errors

Pay your credit card - and other - bills before the due date to avoid penalties. (Mark Lennihan/Associated Press)Are there errors on your bank or credit card statements? Well, if you're not in the habit of checking, you wouldn't know.

Again, it is critical to check regularly because you don't have unlimited time to fix a problem. You may have only 30 days to bring an error to your financial institution's attention.

You don't have to wait until your statement arrives in the mail. By regularly checking your accounts online, you can react quickly to discrepancies that arise.

It can be handy to use personal finance software, although not everyone wants to spend the time and effort in setting this up.

The advantage is you can download your transactions directly from your financial institution when you want, giving you the opportunity to be on top of your situation.

Pay your bills on time

If you're late paying your utility bills, you'll likely face late charges. Some companies charge a flat fee — others base it on a percentage of what you owe.

If you pay by mail, make sure you send your payment at least five business days before the bill's due. If you're paying online or by credit card, make sure you know what time of day the company sets as its deadline. Some companies may insist that payments be received by 9 a.m. on the due date.

One solution is to sign up for pre-authorized payments. This allows a company to take what you owe directly out of your account. The advantage is, your payments will be on time. The disadvantage is you don't control when and how much money will come out of your account. While normally this should not be a problem, it could be if you have a dispute with the company. If you are overbilled, you will have to fight to get your money back.

You might want to think twice about giving some companies the authority to regularly take money out of your account to cover bills. If you've recently left a fitness club, for example, but the payments keep on coming out of your account, make sure you've kept proof that you've ended the contract.

Spreading out your payments

Sometimes it can be tough to get together enough money to pay large bills in one lump-sum payment. Most insurance companies will let you pay your car insurance bill monthly. But there can be a price.

You will likely be paying a few dollars a month for the convenience of paying by instalment. Same goes for many of those "buy now pay no interest for a year deals" at major retailers — except their convenience fee is usually paid upfront. So by paying $75 for the privilege of not paying interest for a year on a purchase of $1,000, you're actually paying the equivalent of around eight per cent interest. Not exactly no interest, but better than the 28 per cent most department store credit cards charge.

More ways to save on plastic

Planning a trip? Used to be that the most cost-effective way of paying for your out-of-country purchases was to put it in your credit card — assuming, of course, that you paid your bill in full when you got back.

You can withdraw money from some American ABMs owned by Canadian banks without paying a fee'

Not so anymore. Credit card companies now typically add a foreign currency conversion charge of up to three per cent. Still, when it comes to major purchases, using your credit card may be the best route. Otherwise, it makes sense to withdraw cash from local ABMs.

Canadian banks have expanded their presence outside Canada's borders in recent years. In some cases, you can withdraw money from some American ABMs owned by Canadian banks without paying a fee. Check with your bank before travelling.

To minimize the fees you pay, withdraw enough cash to last you a few days while travelling. Fees for using foreign bank machines are typically higher than using another bank's machine while you're at home.

Do you really need to pay a hefty annual fee to use a credit card that accumulates travel miles? Those "free flights" that you eventually claim may wind up costing hundreds of dollars before you take off. Your points will usually just cover the base fares. Taxes and fees are extra. And add in all that interest you're paying if you don't wipe out your balance every month. You may be better off with a lower-interest credit card and looking for sales on those flights you want to take.

Travelling? Watch what you pack

It doesn't take much to incur hefty fees if you're carrying too much baggage on vacation. Airlines limit the number of bags you can check. They also limit how much each bag can weigh. Fees for packing too much can add hundreds of dollars to the cost of your trip.

Be aware of your baggage restrictions. If you're allowed two suitcases and a carry-on bag, you might want to take all three, even if your bags aren't quite full. That way, you won't have to be throwing away stuff to make room for all those good deals you found during your travels, just to avoid paying overage fees.