A Better Way to Manage Your Everyday Money - Book - Page 68
Paper checks
Personal checks are a traditional method of making
payments, typically used for transactions like
paying bills or making in-person purchases. While
paper checks are being replaced by debit cards, they
are not entirely dead. The Federal Reserve reported
that the volume of checks written in the U.S.
dropped from 50 billion in 1995 to 11.2 billion in
2021. Still a respectable number.
The following are the most important benefits that
paper checks offer:
● Access to small businesses that do not
accept credit or debit cards. Card processing can be expensive and not every business can
afford this cost.
● Paper checks are an easy way to make person-to-person payments, especially when you
are paying someone who does not use a payment app such as PayPal, Venmo, or Zelle.
● Paying with a paper check is more secure than handing over cash.
● Using a paper check creates a paper trail.
● Checks can be post-dated (dated after today), thereby delaying when they become valid.
● Payment of a paper check by the bank or credit union upon which the check is drawn can
be stopped to prevent the check from clearing.
Even though you may be totally into going cashless with apps and debit cards, being able to
write a paper check is still a financial skill that you may need occasionally. It doesn’t hurt to have
a book of checks lying around, and know how to use them, in case a need arises.
Lois has had to write checks in several situations where a check was the best or only option. A
couple of examples are:
● paying a handyman who only accepts cash or check;
● ordering a calendar from a lady in another town who sells them each year to support
cancer research;
● the annual maintenance visit from an HVAC technician;
● paying for an item made by hand by a neighbor;
● purchasing our new Colorado pickup.
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