Crazy Money! Citi Group’s $81 Trillion Error

It’s Crazy Money Day! 

How often do you check the balance in your bank accounts? One year ago, Citigroup attempted to credit a client with $280. An “inputting error” credited the account with $81 trillion. No money left the bank because the preventative controls stopped the transaction. However, they were charged $135 million for the multi-trillion-dollar mistake. That’s crazy!

In 2020, the bank made a $900 million transfer error. It was blamed on outdated technology and a human mistake. Citibank’s glitches cost them $400 million in fines. Risk control and data management improvements failed to satisfy the Federal Reserve and the Office of the Comptroller of the Currency.

Now, I could write a book on the financial mistakes that I’ve made. Here are some ways to avoid the most common ones: First, never spend more than you earn. That’s the fastest way to end up in debt. Interest payments will set you back months, years, and even decades. Budget wisely to give yourself the needed margin. Second, fund an emergency savings account. Money set aside will prevent you from having to borrow or use a credit card. Learn to expect the unexpected, and your emergency fund will grant you much-needed protection. Finally, don’t carry a balance on your credit cards. Pay them off as quickly as possible using the avalanche or snowball method. A balance transfer may work for you – just read the fine print, and remember to check your credit card and bank balances regularly!

And if you’re struggling with credit card debt, I want you to contact Christian Credit Counselors. For more information, visit online at crown.org/ccc.