You know I’m old. I have many set ways.
Yeah, for some 57 years, I have had an active checking account. Or two, or three.
I used to write some 50 or so checks a month. Nowadays, my monthly total is closer to 10.
But, according to published data, I am one of the very few who still uses a checking account. Kind of like land-line telephones usage. (Yes, I had those, too. But, I terminated them when I found out that Verizon didn’t maintain the batteries necessary to let those phones work during a power outage- nor did they tell a soul about their failed policy. I found out about that right after the terrible derecho we had- and was surprised to find I had no phone service. I had maintained my land line so my kids would be able to reach out and touch someone during an emergency. Yeah, that was a waste of money.) But, back to checking accounts.
It seems that the promise that the “check is in the mail” only applies to the very few. That all changed with the millennium. At that time, we Americans disbursed our payments by check for 6 out of every 10 non-cash purchases. Now, that number is barely 1 in 20. Which explains why the Federal Reserve has been able to trim the number of check processing locations from 45 to 1! But, for big-ticket items, checks are still in vogue. (OK, for 14% of said transactions.)
And, baby boomers still rely on checks, involving some ¾ of that population segment. Those of college age- they barely register 10% utilization. Note that those with higher degrees also still employ checks. Unless those folks live in the East and the South, where check writing is the least common modality of payment. It seems we Americans will only resort to checks when we are making donations to charity or paying contractors, landlords, or our dreaded taxes.
Interestingly, there is a racial component, as well. Some 51% of White folks have written a check over the past month; but less than a ¼ of Black folks will reach for such a paper payment. (That may be related to the fact that Black Americans are five times more likely to be unbanked when compared to White Americans; obviously, not having a bank account makes writing a check unlikely.)
(Hispanics (31%) and Asians (37%) reach for paper a little more frequently- with the emphasis on little.
To be honest, the Feds have not carefully or annually measured the payment methods we use, which is why that graph above only lists a few years, for which there is data. But one of the facts we do know is that 2017 was a pivotal year- it was the moment when “cash was king” to when debit cards won out. (And, of course, I am out of step- I stopped using cash sometime around 1980, switching exclusively to the manifold credit cards I carried- and still do. And, I really don’t use a debit card, either.) The COVID pandemic, where we rarely had face-to-face interactions has further decimated the use of cash in our transactions.
Credit cards are the prime source of payments now, and they have been the top choice since 2022.
Venmo, Zelle, Paypal and other cash apps are a growing factor in payment transactions; we will see where they go and grow in future years.
Are you in step?
I recommend you obtain a copy of “One Bold Move a Day”, written by Shanna Hocking. The book shares hard-won advice and insights gleaned from 20 years as a successful manager of large teams. Shanna helps you choose concepts and methods to reach your goals every day of your personal life. And, the key point- the time to start is now!
Among suggestions in the book is seeking out a mentor, even a personal board of advisors, as well as these other recommendations- stop relying on external validation, stop trying to prove yourself, there is no such thing as perfect or a perfect time, celebrate the progress you make each and every day, and practicing gratitude.
I am asking you- my loyal readers- to provide me a short blurb of what you are doing to make yourself better each day, how you are helping to remove the bias against women and minorities in STEM and management, and the like. (Use this form, please.) I will choose among those items submitted between today and the 1rst of November and provide you a copy of Shanna’s book, One Bold Move a Day.
Good luck!
Paying by check is so interesting to me, I’m not in the US and it’s never been a thing here in Europe. I’ve definitely jumped on the PayPal bandwagon though!
I, too, use Paypal. I feel safer with their operations.
As a Swiss person and former banker who had been doing online banking for years, I was shocked when I came to the U.S. and was expected to write checks in order to pay for rent, utilities and the like.
Without a green card / social security it was a little wonder and required some serious convincing to even be able to open a checking account.
Fast forward a few years, and I’m back in the U.S. for my orientation with Starbucks. I found out that 2/3 of the employees were getting paychecks! I worked at a store and the USPS pulled up, the postman came in, ordered coffee and handed the store manager a bunch of envelopes, which were then promptly distributed among the team members. After work they had to go and cash their check. Why? You could simply do a bank transfer, no?
It all has to do with cash flow, Tamara. IT takes longer for the cash to disappear from one’s bank account with a check than direct deposit.
I’m in step, I still write checks! Not many but a few. I too use mostly credit cards and pay the balance when the statement arrives. I like that I can keep track of my spending with a credit card. My 27 year old granddaughter only has a debit card and uses an online bank! I guess we’re old fashion and stuck with it. LOL
have definitely adopted the 21st Century attitudes, Martha!
I still have a chequebook but use it about once or twice a year. Everything gets paid for on the credit card and money from my current account is transferred to cover my spending.
I use a banking app to manage my accounts – all paperless. I still get paid for sales of my items at a local gallery by cheque, which I find incredibly annoying, as I have to make a trip to the bank, which is some distance away from home as so many branches have been closed.
As opposed to me, you have entered the 21st century!
We need to try and keep checking accounts alive. An all digital system means they will be able to control everything.
Interesting perspective, Brenda!
I’m cash , checks and credit cards. My husband is online banking, debit/credit cards and checks. So we are a blend of old and somewhat new school. But even people five years younger than us are depending on Zelle, Venmo and Paypal. I should at least set up a Paypal account because I can’t tell you how many times now, at work (almost my entire department works from home) we have a collection and the person says Venmo me and Paypal and I have to ask if a check is OK. It’s become embarrassing.
Great addition to the conversation, Alana!