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Thanks to Jade408 and to 20yrsinBranson for the book recommendations: "Nickel and Dimed" by Barbara Ehrenreich and "A Framework for Understanding Poverty" by Ruby Payne, respectively. Since I posted a few days ago, I have read the former and I'm about half way through the latter. Both are excellent.
Just in case others are also interested, Ehrenreich's book came out about 10 years ago but is still relevant. She went "undercover" and lived the life of a minimum wage earner in three jobs in three cities, actually paying for her food, housing and other expenses out of her earnings. Eye-opening.
By contrast, Payne's book is an academic treatise, but a very down-to-earth and sensible one. It focuses not so much on the financial aspects of poverty, but rather on the attitudes and the unwritten rules which determine how people in generational poverty set their priorities and conduct their lives. Sadly, many of these attitudes and unwritten rules guarantee that the poor will remain so. Practical strategies for schools to "unteach" these rules offer some hope.
Thanks again, you two.
You are welcome! I'll need to check out "A Framework for Understanding Poverty."
I haven't seen family cycles repeat in poverty, but I have seen it in abuse, and unfortunately no matter how long and hard to you talk, you can't convince people -- even when in their heads they agree with you.... and it's just an amazing miracle when the cycle breaks....
My parents grew up in rural parts of the South. It is eye-opening visiting, but we didn't notice the differences as children. I also think being poor in a rural area is very different than poverty in an urban area. In my parents neighborhoods, many neighbors helped each other, whether that meant sharing meals or food from the garden or carpooling to Walmart or the grocery store. Some people in my extended family continued the cycle of poverty, living in rickety homes and never having the opportunity to escape.
Especially in my mom's neighborhood, there was a huge issue with classism. The people who had family who left and moved north or west or became more educated thought they were "better" than the families where the families still lived in the rural town. The people who weren't able to escape were generally stuck in poverty and many didn't move more than 2 or 3 houses away from where they grew up. There aren't many people in my age group, because many of the people in my mom's generation moved away and raised their families elsewhere.
The people in my age group that stayed there are still stuck in poverty.
I actually exceeded my transactions a few months ago on a savings account. The online banking limit is tricky. I kept transferring out money from my savings to checking, and i have a recurring transfer setup to a 3rd party bank account.
Anyway, at citibank, using online banking to transfer money counts as one of your 3rd party transactions. Check your bank rules carefully.
I received a stern warning letter. I think it said if this happens again in the next 6 months, we'll need to close your savings account.
I got the warning letter too when I exceeded 6 online transfers from my son's savings account to his checking account. (I have control over his college money which is in a savings account.) However, it seems to apply only to the online transfers...if they were made through the ATM, they didn't count toward the limit.
You can have them direct deposited into a SAVINGS account too. Personally I would never have a paycheck NOT direct deposited.
Some employers resist direct deposit. My last employer would NEVER use direct deposit for paychecks.
His stores generate half their sales volume on weekends (Friday-Sunday) and he releases paychecks at or after 5 pm on Friday. The bank on which the paychecks are drawn is closed from 5 pm Friday until 9 am Monday.
This allows him to float paychecks over the weekend, as they cannot be presented to his bank for payment until Monday, by which time the weekend's (mostly cash) sales have all been deposited.
You are welcome! I'll need to check out "A Framework for Understanding Poverty."
Very interesting book. I had a pretty much lower middle class upbringing and I was astonished as the book showed me how ignorant I was in aspects (esp coping or lifehacking) of other classes (higher and lower).
Last edited by freemkt; 04-30-2011 at 04:04 AM..
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What made me think of this is the upcoming Social Security requirement for people to stop receiving paper checks; everyone will have to receive electronic deposits, and for those people without checking accounts there is some sort of special debit card (or credit card?).
I cannot imagine not having a checking account. I've had one ever since I was in college and had hardly any money to run through it and I'm now pretty ancient (67). True, I write very few paper checks anymore because of online banking. But isn't online banking via a checking account, or am I just unaware of other possibilities?
The older seniors who do not have checking accounts presumably do not have online banking either, of course. Part of my question is how do they manage? I'm having trouble imagining it.
And apart from the homeless, are there also younger people without checking accounts? Anybody out there? If so, how do you conduct your affairs?
When banks close accounts (say, for too many NSF) owing unpaid negative balances (due perhaps to NSF fees), they report the account (name, SSN) to a reporting agency called ChexSystems. All reported accounts are listed by ChexSystems for five years, and then are removed from their list.
When you try to open an account at a bank, the bank runs your info through ChexSystems, and it is customary for banks to deny those on the list.
I am not aware of any resolution process, other than to wait until the five years are up and ChexSystems drops you off their list.
SSA has 'Direct Express' a bank that SSA (and other gov payers) contract with to give a debit card so SS payments can be direct deposited. There are other banks that will set up debit only cards for direct depost, for paychecks.
For the company that need to have the float over a weekend to cover the paycheck. They need more working capital. One bad weekend, or a storm that close them would cause them alot in NSF fees. and EMp who would want to be paid in cash and there NSF/return fees from the Emp.
When banks close accounts (say, for too many NSF) owing unpaid negative balances (due perhaps to NSF fees), they report the account (name, SSN) to a reporting agency called ChexSystems. All reported accounts are listed by ChexSystems for five years, and then are removed from their list.
When you try to open an account at a bank, the bank runs your info through ChexSystems, and it is customary for banks to deny those on the list.
I am not aware of any resolution process, other than to wait until the five years are up and ChexSystems drops you off their list.
Thanks for the info - this is what happened with my daughter. But no one would give her any idea as to how long her name would be on the list. I went with her to my bank to see if they would let her open an account with me as co-signer. Even with my good history with the bank they said they couldn't approve it until her name was removed from the list. They said they didn't have any information about the amount of the negative balances either.
My daughter was able to open an online account with Charles Schwab with no problem whatsoever (thanks again for the tip jade408). She now has direct deposit of her paycheck, and mailed check deposits show up within 2 days. She also has a debit card to access funds. So it's working out.
For the company that need to have the float over a weekend to cover the paycheck. They need more working capital. One bad weekend, or a storm that close them would cause them alot in NSF fees. and EMp who would want to be paid in cash and there NSF/return fees from the Emp.
The problem in this case was NOT a lack of working capital. There was enough of it available, due to some incredibly good locations, favorable long-term leases, and high sales volume.
The boss simply had an expensive hobby (globetrotting). We had a GREAT supplier until they dumped us (we were unable to keep up with their tight payment terms) and when we went to a different wholesaler, our product costs went up 15-20 percent.
When banks close accounts (say, for too many NSF) owing unpaid negative balances (due perhaps to NSF fees), they report the account (name, SSN) to a reporting agency called ChexSystems. All reported accounts are listed by ChexSystems for five years, and then are removed from their list. When you try to open an account at a bank, the bank runs your info through ChexSystems, and it is customary for banks to deny those on the list. I am not aware of any resolution process, other than to wait until the five years are up and ChexSystems drops you off their list.
Thanks for the info. I have gotten quite an education through this thread. I had no idea about any of that (what you posted above) - just completely off my radar. I guess either I don't know anyone who is cutting things that close financially, or if I do it's not something they're talking about.
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