How often do you use your checkbook? The answer might depend on your age, your financial situation or even your upbringing.
Even though it may seem easier to use electronic forms of payment such as credit and debit cards, there are still many reasons to keep personal checks in your purse or pocketbook.
Check Usage in Decline
Since 2001, every three years The Federal Reserve has conducted a study on the use of electronic payments and personal checks in the United States. The most recent study is underway and preliminary results will be released in late 2010.
It is obvious that personal check usage is declining in the U.S. However, while the Federal Reserve studies show check usage diminishing, they also prove that checks are still the most popular type of payment option.
2003 was the first year recorded in which check usage was less than electronic payments. That trend continued in the 2007 study. Yet even the most recent study indicates that checks are still used more than any single type of electronic payment.
Checks accounted for 33% of payments in 2006 and electronic payments made up 67%. However, this comparison is with all types of electronic payments lumped into one group. Checks still outnumbered debit cards (27%) and credit cards (23%) in the most recent study.
The bottom line is that there are still around 30 billion checks written every year.
The Advantages of Personal Checks
It’s not too hard to think about ways that checks can be a hassle. In a society where we demand immediate satisfaction, the process of writing out a check can test a person’s patience.
Those of us who are in the habit of quickly swiping a plastic card can even lose our cool when someone in front of us in line at the grocery store decides to write a check.
Some people will argue that the only time they ever write a check is when they are paying the rent.
Despite the small amount of time it takes to pay with a personal check, there are many ways to use them in a daily routine.
1. Real People Don’t Take Credit Cards
Where do you plan to swipe your card when you have to exchange money with another person and don’t have the cash? The reality is there are many day-to-day situations in which using a credit card will not be an option.
From time to time we find ourselves in debt to a friend or family member. The easiest way to repay them is by writing a check.
Personal checks can be used to pay the babysitter, placed in a card as a wedding gift, when writing out an offering at church or donating to your favorite charity.
2. Better Control of Personal Finances
Many Americans have found themselves spiraling into debt because they overused their credit cards and overspent. It became far too easy to whip a card out of your wallet and make a payment without really considering how it could affect your life down the road.
That’s one of the reasons slowing down and writing a personal check is a good idea. It gives the buyer some time to think about the amount of money being spent, and leads to more responsible spending habits.
People who use checks are also more likely to keep better track of their personal finances using duplicate checks and a check register to balance their account.
With credit cards, it’s easy to forget how the amount you owe is getting bigger and bigger.
3. Checks are Good for Business
Because of the existence of check fraud and problems with insufficient funds, some businesses no longer accept personal checks. However, you’ll also run into businesses that don’t accept credit cards and would much rather take a check.
Businesses are charged fees for credit and debit card transactions. But that’s not the case with personal checks.
Even online retailers should consider the benefits of accepting personal checks. It only opens up another avenue to make sales. Plus, online businesses can always postpone the product or service until a check clears the bank.
4. Personal Checks Have Personality
One of the best things about personal checks is that they can be personalized.
Picking out the design that matches your personality can be a fun and fulfilling experience. You could look for checks featuring your favorite sports team, beautiful scenery, animal checks depicting dogs and cats and much more.
When you order checks online you’ll find a practically endless supply of choices.
The design printed on your checks say something about who you are as an individual. They can also be great conversation starters.
The next payment study from the Federal Reserve may indicate that check usage is declining even more. However, it will be many years before the use of checks as a viable payment option disappears completely.
Kasey Steinbrinck has used his writing skills in variety of fields including television, print publications and online marketing. He currently creates web content for a number of companies including Check Advantage, which recently began offering cheap personal checks to customers, and lets visitors order personal checks online.
