im reading that having a debit card makes it hard to save why is that. and i understand having a savings is easier but i don't like to carry cash i don't what to do
2007-10-23 15:09:44 · 5 answers · asked by Im_Fabolous 1 in Business & Finance ➔ Personal Finance
Having a debit card makes it hard to save because it's so convenient. You know what you are able to spend, and when you don't have enough in checking, it will automatically pull from either your savings account or an overdraft protection loan. Sometimes you might carry cash, but even when you do, I'm pretty sure you still take out the debit card because all you have to do is swipe it....you don't need to get change back and deal with any of that. If you want to save, i suggest that you open a second savings account that is not linked to your checking and start out by deducting some of your paycheck like 5% or so and start depositing in there. Or to make it a bit more strict...open another account at a different financial institution and ask for an atm card only to make deposits...no withdrawals. : ) Hope this helps!
2007-10-23 15:32:04 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If you automatically divert some of your pay into a savings account, you should be able to save without too much trouble.
I think the thought is that if you physically spend cash you are more aware and spend less. However the advantage of using a debit card is that you can go back after the fact and analyze your spending.
2007-10-23 15:15:28 · answer #2 · answered by VATreasures 6 · 1⤊ 0⤋
The only reason a debit card makes it hard to save is because you have access to your money 24/7. Set up a savings account and have 10% (or more) of your pay go directly to that account. The rest can go to your debit account... just keep track of how you use it.
2007-10-23 15:18:36 · answer #3 · answered by mJc 7 · 1⤊ 0⤋
Because people who use a debit card for their purchases don't keep track of their spending as well. Think about it... If you have 20.00 in your pocket you are not going to buy something that costs 20.00 because you won't be able to pay the tax. When you use cash or limit your spending to cash only you are aware of how much you have in your pocket and know you only have that much to spend so overspending is not an option.
2007-10-23 15:19:45 · answer #4 · answered by Stephanie B 5 · 0⤊ 0⤋
It's not having a debit card that makes it hard to save, it's lack of discipline.
2007-10-23 15:17:49 · answer #5 · answered by curtisports2 7 · 1⤊ 0⤋