6 Ways to Go Green With Your Finances

By Bethany Hickey

When Earth Day comes around, the idea of being “environmentally conscious” typically comes to mind. Planting a tree, composting food waste and recycling are all great — but what about your everyday finances? As it turns out, we can make many small changes with our personal finances to create a positive environmental impact.

1. Going paperless

It takes about 5% of a standard pine tree to produce 500 sheets of paper. Going paperless with your bills and other financials is one of the easiest ways to go green and save money. Many banks charge fees for paper statements, which can add up quickly and put a dent in your finances. By opting for e-statements, you won’t have to worry about any extra fees eating into your savings.

But banks aren’t the only ones offering an incentive for going paperless. Many insurance companies, like Progressive, offer discounts if you opt for paperless billing, making it a win-win for your finances and the environment.

2. Buying an electric car

Signed into law in late 2022, the Inflation Reduction Act offers consumers incentives for purchasing environmentally friendly products — the tax credits and rebates can total over $10,000. 

If you purchased a new electric vehicle, you may be eligible for a tax credit of up to $7,500 — if you bought a used electric car, it’s up to $4,000. There are some vehicle requirements, but for a few thousand dollars, it’s worth asking a tax professional if you’ve recently purchased one.

3. Banking with an environmentally-conscious institution

Often called green banking, some banks and fintechs support green initiatives or socially responsible causes.

For example, Capital One operates on 100% renewable energy. Another bank, Ando, pledges to use 100% of its investments to fund green initiatives for things like sustainable transportation, clean energy and more. Amalgamated Bank matches half of your earned interest in its Give-Back Savings account and donates it to charity — and runs on 100% renewable energy.

Banks or credit unions that use account holders’ savings accounts for ethical or environmental causes often disclose or advertise this information, making the search for a green bank easier.

4. Green investing

If you’ve got the cash, check out green investing, which lets you invest in securities or bonds that support green initiatives. Many green bonds are used to fund expenses such as reducing pollutants, supporting sustainable industries or developing green technologies like solar power.

Most often, a bond represents a loan to a corporation or government entity, with a maturity date anywhere from one to 30 years out. Throughout the term, you’re the investor, and you collect interest from the borrower.

Investing in bonds can be a great way to diversify your investments and directly support environmental causes or research.

5. Green credit cards

Some banks or credit unions offer credit cards called “green cards” or “climate cards,” which are often in support of environmentally-conscious causes.

For example, Beneficial State Bank has a Climate Card that rewards you for purchases supporting chosen nonprofit organizations.

6. Green home living

There are many ways to incorporate eco-friendly methods into your home — and many can save you some cash. 

• Smart thermostat. We’ve all left the heat or AC on before, but having a programmable thermostat can help avoid that slip. Many smart thermostats allow for automatic routines, such as turning down the heat at the same time every night, or the ability to change the temp through an app on your phone. This helps save you money by cutting down on gas or electricity usage.
• Tankless water heater. If you’re a homeowner, a tankless water heater can be a great way to invest in energy-efficient appliances. They’re smaller than typical water tanks, offer on-demand heating and the hot water supply is endless because they’re not constantly having to heat a giant tank of water. But tankless water heaters are pricey, often costing $3,000 to purchase and install, which is about three times more than a traditional one. Always calculate your savings before investing in larger purchases to determine if it’s right for you and your personal situation.
• Reusable items. Single-use plastic shopping bags have been banned in some cities and states, and even charge a small fee, sometimes up to $0.25% for paper bags, in certain areas. Simple and straightforward, using reusable bags at the grocery store, having your own reusable water bottles and avoiding single-use plastic can help you reduce a little waste each day, and save a few dollars for your next shopping trip. 

Everyone has a carbon footprint. While you may not have the footprint of a major corporation, little things can add up: The cars we drive, the food we eat, the electronics we use — and how we manage our finances. 

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Sustainability Investing