Why I Link My Venmo to a Minimally Funded Checking Account

If you're in the habit of using Venmo to do things like split the tab at dinner or reimburse friends for picking up groceries for you, you're in good company. Venmo's user base grew to almost 63 million in the U.S. in 2023, says Oberlo. And seeing as how Venmo also introduced a teen account last year, in the coming year, that number could easily grow.

Venmo is an app I use regularly. As the class parent at my kids' school, I'm constantly asking parents to Venmo me for things like teacher gifts and classroom supplies. Similarly, I often use Venmo to do things like contribute to group gifts for family members and friends.

But I make a point to keep my Venmo account linked to a secondary checking account -- not my main one. Here's why.

I don't want to be tempted to spend

Since I write about financial matters, I'm clearly aware that the money that goes into and out of my Venmo account is real money. As such, I know it's important to spend it carefully. But I'll admit that I'm sometimes a little loose with my Venmo payments because it's just so darn easy to pay for things on the spot.

"Oh, your daughter is selling bracelets to raise money for her soccer team? And you take Venmo? Sure, here's $5 then."

Scenarios like that play out all the time in my world. Because of this, I need to be careful with what I'm spending. By linking my Venmo account to a checking account without a lot of money in it, I'm basically forcing myself to stick to a certain spending limit for what are often unplanned purchases.

There's a matter of fraud, too

Apps like Venmo can be a goldmine for hackers and criminals. That's something I'm well aware of, which is another reason I specifically make a point to link my account to a minimally funded checking account.

My regular checking account usually has thousands of dollars in it because I use that account to pay different bills, like my mortgage and electricity. Since the checking account my Venmo is linked to is a secondary one, I only keep a few hundred dollars in there at a time. That way, if someone does manage to get into my account and steal my money, the most they'll be coming away with is $250 or so.

Now, I'm not saying I'd be thrilled to lose $250. And in that case, I'm sure my bank would try to step in to make me whole. The point, though, is that this approach gives me more peace of mind and makes me more comfortable with the idea of using Venmo.

Payment apps like Venmo can certainly make life convenient. But you may want to set some ground rules with your account to avoid overspending. And for financial protection, you may want to take the same approach as I do when it comes to linking to an outside account.