I recently found out some information that left me dumbfounded. I wanted to share some of it and find out if any of you have heard of this, and what ideas you may have to help with this situation.
According to the Federal Reserve, as many of 1 in 12 families in the U.S. do not have a bank account. And their reasons are...
- They don't write enough checks to warrant having one.
- They don't like dealing with banks.
- They don't have enough money.
Now here's the irony. A survey by the Consumer Federation of America found that on average, the people without bank accounts are paying $24.45 to cash a $1,002 Social Security check, and blue-collar workers are paying $19.66 every week to cash a $478.41 handwritten check, through check-cashing companies. Wow! Talk about needing to educate people on how much better it would be to have a bank account!
It's probably safe to assume that these same people don't have any credit lines either, and as a result, are probably paying through the nose for many other services as well. This is obviously a segment of the population that is unable to own a home either.
To elaborate further, the reasons many people are forgoing traditional financial institutions is because of mistrust, cultural barriers, language barriers, and a belief that by the time all the bills are paid, there will be nothing left, so why bother having an account? Which also means they're paying for money orders, or driving to the utility companies and spending the gas money to get there.
I'm left thinking about the "First Time Home Buyers Fair" that was held in Daytona
Beach last weekend. The turnout was unbelievably low. Knowing now that so many people don't even have a bank account, it seems to me that we're missing a few steps. These people would be the first time home buyers! But they first need to be educated on how to get their finances in order. I'm sure they believe that owning a home is not even in the equation. And with no accounts or credit, it's not! Holding a First Time Home Buyers Fair is a leap too far.
So my mental wheels are spinning. How do we reach this element of the population? How do we help educate them? Any ideas?
Buy a home in Daytona Beach Florida
Rey- Good point! We'll always have those! But what about the ones with cultural and language barriers? Until this country gives us an official language, those are going to continue.
Stephanie- Good idea!