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I keep hearing the economy is fine,plenty of cash in the bank accounts waiting to be deployed.
I used to think everyone has a bank account,how could they not have any?
But then I found out some do not have bank account or do not need a bank account,come to think of it,some require minimum balance,say $1k.and not everyone have $1k sitting idle in a bank account
Some just cash their paychecks and pay their landlord cash,go to supermarket and pay their utility bills and pay cash for grocery,buy a debit card .
So what percentage of the population do not have bank accounts?
I keep hearing the economy is fine,plenty of cash in the bank accounts waiting to be deployed.
I used to think everyone has a bank account,how could they not have any?
But then I found out some do not have bank account or do not need a bank account,come to think of it,some require minimum balance,say $1k.and not everyone have $1k sitting idle in a bank account
Some just cash their paychecks and pay their landlord cash,go to supermarket and pay their utility bills and pay cash for grocery,buy a debit card .
So what percentage of the population do not have bank accounts?
I don't know, but they are insane to do it that way.
There are serious costs attached to operating that way. Unless you're trying to go off-grid, it's senseless way to live. Check cashing services take their pound of flesh. Paying your landlord, power bill, and whatever else sucks up huge amounts of time. And if you get robbed, you've just lost all your money. Then what?
I think they buy prepaid debit card.
Paypal and Walmart both offer a MC card which will accept your payroll check,then you can use that MC card to shop and get cash,but there is a monthly fee of $3.95-$4.95 a month.
You can link your Paypal account with your Paypal MC card and move money back and forth.
AFTER THEY PAY rent and grocery and utility bills,there aint much left to rob.
Somewhere between 5-7% of the US is unbanked has no checking or savings account. A much wider range is under banked 20% +/- which means they might have or had an account but rely on other means, like prepaid, check cashing, money orders, western Union. It Is really expenses to be unbanked/underhanded.
Credit issue, lack of money, undocumented, lack of transport job, proper identification and/or uneducated are all reasons
Banked vs unbanked at a household level to me hides a larger issue. It really should be tracked by adult population. You could have 3-5 adults living in a house and if one person has a checking account they are “banked”
Banked vs unbanked at a household level to me hides a larger issue. It really should be tracked by adult population. You could have 3-5 adults living in a house and if one person has a checking account they are “banked”
a couple could have one checking account,a couple with an adult child who is still in school or unemployed/underemployed may not have a bank account as he/she does not have to pay bills by writing checks.
I don't know the numbers but it is not uncommon. There are a lot of reasons to not have a bank account, mostly to do with hiding money, and there are a couple of reasons a bank will reject an application for a bank account, mostly having to do with trust issues.
Some of the employers pay their workers with a prepaid debit card and I think it is safe to assume that they do so because so many of their employees do not have bank accounts.
Undocumented aliens don't have social security numbers and you can't have a bank account without a social security number. The government wants to claim 11.7 million undocumented aliens in this country, but I suspect the real number is double that. Another quarter million undocumented aliens entering every month (just the ones being caught and counted) and each one of those will not have a bank account,
So lots of people in this country don't have bank accounts.
I don't know, but they are insane to do it that way.
There are serious costs attached to operating that way. Unless you're trying to go off-grid, it's senseless way to live. Check cashing services take their pound of flesh. Paying your landlord, power bill, and whatever else sucks up huge amounts of time. And if you get robbed, you've just lost all your money. Then what?
In one of my lines of work, a fair amount of the staff was "unbanked" for various reasons, which is why many employers in that field offer either pay through either direct deposit or via a debit card. With Venmo (a fair amount of the indie landlords around here take Venmo and the like) and online bill paying, it's relatively simple for the folks with the debit (reloadable pre-paid cards) to pay their bills if they can live within their means thus avoiding the pay day lenders.
Being unbanked has many reasons, but the big ones are mistrust of banking institutions and/or the government (desire to maintain privacy is a big one with the latter), lack of sufficient income to make minimum balance requirements, lack of easily accessible bank branches, etc.
It's no mystery why pay day lenders proliferate in lower income neighborhoods while bank branches tend to be rare or flat out non-existent.
Sometimes, people just don't have anyone to help to guide them through the banking process. That is, they don't know what they don't know and don't think to ask someone for guidance. Sure, schools could teach this (and many of them do), but ultimately, people learn what they live far more effectively than something that is skimmed over in a class. I do know that several of the churches in my area offer financial education which has proven to be effective as there's already a bond of trust formed between the churches, its congregants, and the surrounding community.
Is it insane to operate this way? Perhaps and as often noted, it's expensive to be poor. However, the circumstances and the mindset that lead to a certain segment of the population to be unbanked are understandable.
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