Switch to plastic poses spending problems
Emily Haavik
Issue date: 11/19/08 Section: Student Life
Students seem to be carrying cash less and less as check cards become the norm. However, the ease of swiping the plastic may lead to overspending for some students.
A source at a local bank said this check card trend has become obvious over the past few years.
"If you get a checking account, it's almost a given," she said, suggesting that checkbooks and check cards typically go hand-in-hand.
The source said there are clients that don't want a check card at all. With the rise in
check card use, though, the use of checks has gone down considerably, the source said.
She said the use of credit cards, on the other hand, remains steady.
It's not just students that are using check cards, she said, but almost everyone.
UMD sophomore Samantha Voss said she uses a check card and rarely carries cash.
"Only if I'm working," Voss said, referring to the times she does have cash on hand.
The source at the bank said that students often tend to be the ones that overspend when
using a card.
"They're less likely to keep a register," she said. "They keep track of it online."
UMD junior Eric Pownell said he sometimes spends more with a check card than he otherwise would.
"[It's] because I probably wouldn't carry that much cash with me," Pownell said.
Pownell said he spent more than he actually had in his Wells Fargo checking account once. He knew that the money would be transferred from his savings to his checking account to cover the deficit, but he wasn't aware that there would be an overdraft fee of $10.
Voss agreed that it's possible to spend too much with a card, because you aren't as aware
of spending the money. However, she said she doesn't have much trouble keeping track of her check card purchases.
"It's different than a credit card, because then you know you have the money," she said.
"I just check it online."
Credit cards may work similarly to check cards, but they pose more dangers because their
users don't necessarily have the immediate cash to back up their purchases.
Pownell had some simple advice for students using this form of payment.
"Don't spend money you don't have," he said.
The bank source offered some final advice.
"It really is still about keeping track," she said. "Definitely just keep track of what you're spending. Keep a register if you can. Even if you don't want to keep a register,
make sure you keep your receipts."
A source at a local bank said this check card trend has become obvious over the past few years.
"If you get a checking account, it's almost a given," she said, suggesting that checkbooks and check cards typically go hand-in-hand.
The source said there are clients that don't want a check card at all. With the rise in
check card use, though, the use of checks has gone down considerably, the source said.
She said the use of credit cards, on the other hand, remains steady.
It's not just students that are using check cards, she said, but almost everyone.
UMD sophomore Samantha Voss said she uses a check card and rarely carries cash.
"Only if I'm working," Voss said, referring to the times she does have cash on hand.
The source at the bank said that students often tend to be the ones that overspend when
using a card.
"They're less likely to keep a register," she said. "They keep track of it online."
UMD junior Eric Pownell said he sometimes spends more with a check card than he otherwise would.
"[It's] because I probably wouldn't carry that much cash with me," Pownell said.
Pownell said he spent more than he actually had in his Wells Fargo checking account once. He knew that the money would be transferred from his savings to his checking account to cover the deficit, but he wasn't aware that there would be an overdraft fee of $10.
Voss agreed that it's possible to spend too much with a card, because you aren't as aware
of spending the money. However, she said she doesn't have much trouble keeping track of her check card purchases.
"It's different than a credit card, because then you know you have the money," she said.
"I just check it online."
Credit cards may work similarly to check cards, but they pose more dangers because their
users don't necessarily have the immediate cash to back up their purchases.
Pownell had some simple advice for students using this form of payment.
"Don't spend money you don't have," he said.
The bank source offered some final advice.
"It really is still about keeping track," she said. "Definitely just keep track of what you're spending. Keep a register if you can. Even if you don't want to keep a register,
make sure you keep your receipts."
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