Photo by Tony Webster
Society is slowly embracing the idea of a paperless world. For me, that notion also includes paper money. While cash has its merits, my debit card is my best friend. I’m not alone, either. A survey by Fiserv showed that Gen Y-ers make about 14.1 debit transactions a month.
My life is busy—classes, group meetings, a part-time job, commuting—so I truly value anything that makes my daily routine easier. I use my debit card for everything, from the $1.50 cup of coffee to the $30 tank of gas; like the rest of Gen Y, it’s my “primary method of paying for day-to-day expenses.”
There’s the obvious benefit of debit cards: the clean and quick transaction. I don’t have to pull out a wad of ones and make the cashier wait while I count out my money. Post-purchase, there isn’t a pile of change clinking around at the bottom of my bag. Going out at night, it’s better to pack light. I take my bus pass, my ID, and my debit card, all fitting neatly in my pocket. If I should lose my card, I can just call and cancel the account; if I lose a twenty, it’s unlikely I’ll ever see it again. But my favorite plastic perk is the online statement. My parents raised me to keep receipts and balance my checkbook, but at this point in my life I find that practice obsolete. I hate keeping receipts, they clutter my wallet, and I rarely write checks. With an online bank statement, I can monitor my spending habits and see exactly where my money goes (looking at you, Starbucks). Utilizing online banking has made paying my bills easier: I can transfer funds between accounts, whether it’s from my savings to checking or paying back a friend. Again, I am not alone. According to Fiserv, 80% of Gen Y uses online banking, more than any other generation.
Besides the practical benefits, there are a few emotional ones too. When I see people at self-service machines, struggling to slide their worn and wrinkled dollars into the slot, I feel a small sense of satisfaction at being able to do the same task quicker—my card is always crisp. Plus, it makes me feel grown-up.
Given the increasing usage of plastic, it really bothers me when places don’t accept cards. It discourages me from frequenting the establishment, and gives them the image of being either behind the times, or just lame for not wanting to pay the processing fees. What’s worse is the dreaded card minimum, especially because it is against policy with major credit companies, such as Visa and MasterCard. However, it’s hard to stand up for your right to use your debit card for small purchases when this isn’t a widely known rule, especially amongst ordinary cashiers, uneducated in the small print of plastic policies. If the minimum is somewhat reasonable, around $5 or so, I’ll pony up and make sure my final purchase satisfies the requirement. If it’s any more, I just won’t buy anything. Since most days find me without dollar bills, paying cash usually isn’t an option for me.
I tend to look at cash as more of a back up, using it for things like parking or tollbooths. And while there’s nothing like having crisp new bills, I usually just deposit it to the bank. Growing up accustomed to convenience, I am dedicated to debit.
I do the same thing. I've always found it a hassle to have to go to the bank and take out cash, make sure I have enough on me all the time, etc, and while I was in college, I found myself using my debit card for EVERYTHING (I feel like it was partially because I was so used to using my school ID for meals and whatnot, it just became common practice to swipe my card and pay for whatever). I do, however, notice that I don't notice how much I'm spending when I use a card as much as I do when I use cash, which can be frustrating when I go on my banking site and realize I have a $500 creditcard bill because I've been charging breakfast every morning or whatever. Recently, I've been trying to use cash, or at least keep some on hand, more often, but it really is just less convenient.
When you use cash all of the money goes to the merchant. When you use credit or debit cards, a cut of your purchase goes to the money sucking banks.
Do you want to put more money in Bank of America's pocket, or the pocket of the locally owned small business you should be shopping with?
I'm the opposite when it comes to frivolous spending. Once I take cash out of the ATM, I see the receipt and I feel like that cash has already been spent. Once cash is in my pocket it very quickly evaporates.
I hate, hate, hate checks. Every once and a while I'll be forced to write one, forget about it, and then the person will cash it like a month later. And what's the point of balancing a checkbook when I'm making debit transactions a few times a day? It's so annoying.
The only checks I usually write are rent checks and if I could do that online I would, even though my landlord literally lives down the street.
ohh banks are good for things. don't hate on the man so much.
besides, i belong to a local bank and a national bank, so i feel less evil.
Man, I totally agree with everything in this article. It's also really funny and cute! I don't love that I'm supporting big evil banks, but cash is a pain. Seems like everything in New York is cash only, it sucks.
-Rthe_d
I haven't gone to the ATM in weeks. And I'm okay with that. I tend to use my credit card instead of my debit card, but the principle is mostly the same.
But it's important to have a sense of financial responsibility when using any kind of card. They tend to divorce the psychological impact of spending money from the act of payment (due to either the time delay in paying off your balance or seeing the money removed from your checking account), so people can spend more than they realize. Perhaps it is good then that tools like Mint exist that allow us to take a look at our entire financial health on a day to day basis.
Banks are good for things? What things? As a 20-something with not that much money in the bank, what services does the bank provide you, other than convenience, as you stated in your article?
As for local bank versus national bank, what part does the bank need to play in you buying, for example, a pen and masking tape at a convenience store?
Furthermore, if this pen and masking tape costs, say $3, the processing fee for debit cards is between $0.30 and $0.55, so already the convenience store lost 10% of its revenue. I say this to say stores aren't “just lame for not wanting to pay the processing fees.”