Does anyone NOT have a checking acc't?

**steve-in-kville** · 07-21-2008, 01:30 PM

This is kinda a lifestyle topic, but would fit equally as well in the money fourms, so here goes....

I have a BIL that always used a regular statement savings account. Never had a checking account in his life. The one or two payments a month he needs to mail he does so with a money order. He has zero debt. Either he has the money available or he doesn't. No overdrawn bank fees, no service fees. Uses cash as much as possible.

With advancements like the internet, as well as Paypal accounts and debit cards, why wouldn't this work? I think it would force a person to simplify not only thier finances, but also their lives.

**MomToTwoBoys** · 07-21-2008, 01:56 PM

It can still work. I know that when I go shopping and use my debit card, it asks me if I want to withdraw from either my checking or my savings account. As long as he continues to pay his bills via a money order and he adapts the envelope system in the future, should he need it, he'd be ok with not having a checking account.

I don't think my mom has a checking account but all of her disability money is deposited into her savings account. She still pays in either cash or with a money order. That part of her life hasn't changed either.

**starsapphire** · 07-21-2008, 03:49 PM

I went without a checking account for 10 years. Finally got one again 3 years ago out of necessity and I think I've written 3 paper checks so far.

At the beginning of that period, my life was in flux and I had very little money and just a few bills so I did like your friend and had a savings account and paid bills with money orders. Money was so tight I could not risk one bounced check. I either had the money or I didn't. As time went by I just kept doing it that way. It worked for me.

Online banking is now my friend

**dcompton** · 07-21-2008, 10:20 PM

To me it seems that life is easier having one. I have all my utilities and phone automatically debited by the company from my account. I don't know if they would do that from a savings account, but there are often limits on the number of withdrawals before fees kick in there. However, there are no fees on my checking account, so there really isn't a downside to having it.

**Moor** · 07-22-2008, 07:09 AM

my dh has a checking account. i don't.
all the household bills come from his account. i deposit money into my savings for groceries and such. then when i need cash, i just go to the atm. that works for us. i can't use his debit card on base. the card must be in my name.

**FrugalMomof3** · 07-22-2008, 09:10 AM

I dont know if I could live without one, all my bills are paid online and it's taken from my checking account, it's easier for us to have it that way and I save on stamps too!

**Katybird** · 07-22-2008, 09:21 AM

I am sure I could live without a checking account but like Tracy and some of the others have said, it sure makes life easier to have one. I think I handle money the same way as your BIL in the fact that I either have the money or I don't. If I don't then I don't get to purchase anything until I do. I think that is just self discipline

. Now credit cards are an entirely different issue, it is too easy to put things on plastic whether the money is there or not. I don't use credit cards.

**oneloopykat** · 07-23-2008, 01:38 PM

We gave up our checking account a couple years ago and I find it works for us. If I go to the store and I don't have the cash to buy what I want...I go without. Plus when you open your wallet and actually see what you have...as opposed to a number written down in your checkbook it makes you think before you spend. As far as paying bills we have a 'reloadable' debit card that we just put the exact bill amounts on and are able to pay them online or over the phone. But the fact that how much money we have in our budget is actually in our wallets is more of a reality for us than an abstract number. I find that we are able to save more and are spending less on things we don't really need. And as a bonus we never have to worry about overdraft fees etc.

**suebeehoney** · 07-23-2008, 06:37 PM

I haven't had a checking account for more than 2 years, since someone I trusted wrote me a very large check and it bounced - causing 10 of my checks to bounce. I had to close it because of the overdraft fees that overtook my paycheck.

I decided to see what alternatives were out there, and I found that the pre-paid debit cards that are available now are great. I use one, have had for the past 2 years, and the fees charged by the company are MUCH less than the overdraft fees for a checking account, and in some cases, cheaper than the monthly fee for a budget checking account at a bank. I have my paycheck direct deposited onto the debit card, and pay all my bills online, except my rent. That's the only thing I have to go and get a money order for - and that's not a hassle at all. I have to go to the post office to ship my Ebay packages anyway, so I get the money order while I'm there and send it out - done.

I buy groceries with my prepaid debit card, get gas with it, and can make cash withdrawals at any ATM. You just need to watch the fees, because they do charge fees for most of their services - but when you think about the possibility of overdraft fees from the bank, this is definitely a cheaper alternative. There are ways around the debit card fees (I avoid ATM fees by finding stores that allow cash back with purchases - like my grocery store).

**Kim_Mango** · 10-22-2009, 01:31 PM

Originally Posted by suebeehoney

I buy groceries with my prepaid debit card, get gas with it, and can make cash withdrawals at any ATM. You just need to watch the fees, because they do charge fees for most of their services - but when you think about the possibility of overdraft fees from the bank, this is definitely a cheaper alternative. There are ways around the debit card fees (I avoid ATM fees by finding stores that allow cash back with purchases - like my grocery store).

For the last few years I've been simplifying my life as much as possible. However, I haven't simplified it to the point where I feel comfortable not having a checking account.

I'm consciously making a shift from working a corporate job to becoming a freelance writer. My very first writing gig is for a prepaid MasterCard debit card called Mango Money.

As I learn more about the prepaid debit card usage fees and the card benefits, I realize that there are a lot of people out there who get by just fine without a checking account. As 'suebehoney' points out in the quote above, the trick to using a prepaid debit card is to become very good at avoiding get hit with the fees. If you can do that, I think it's a realistic lifestyle to consider!

I will continue to simplify my life more and more over the next year during this career change. Who knows, maybe I'll end up liking the prepaid debit card concept that I'll quit having a checking account too!

**Contrary Housewife** · 10-22-2009, 02:28 PM

I did without one for a long time when I was living hand to mouth, but now that we have money to manage we have checking accounts. We write more than one or two checks a month (not that many more) and I like the convenience of not having to leave the house to get money orders. MOs are a hassle for me where we live, I have to drive someplace during work hours and pay a fee for it, whereas our checking is completely free. I pay $10 for a box of checks every couple of years, that's it.

Our savings account has limited use terms, ie: we can make a certain number of transactions each month before they tell us to get a checking account. In fact, I think the checking is like that too, but we are always under the limit so it isn't a problem. Our bank is small and they handle mostly business accounts and not consumers, so they have a few different rules like that.

Getting cash is usually a PITA, too, as our bank is across town and I don't do ATMs because of fees. With the debit card tied to checking it's easier to track spending, and so many places take it now. While I'd like to spend more in cash and 'fly under the radar' of government and corporate tracking, I can't do that and manage our bills well at the same time.

**TigerGirl1226** · 10-22-2009, 03:05 PM

I can't imagine not having a checking account as so many of my bills are paid through my online banking. Many of the guys that work for DH don't have checking accounts. They cash their checks and then go pay their bills. Many grocery stores have Entergy, City Water, Cox Cable, and many cell phone payment stations right in the stores. They can knock out 4 bills in one place. Guess it works for them, I just can't see carrying that much cash.

**peanut** · 10-31-2009, 01:04 PM

I'm not sure we even have the option of pre-paid debit cards in SK, Canada. We have a chequing account and pay everything on-line from it.

Our savings account is separate from our debit card. We don't want any chance of pulling on savings for monthly spontaneous spending...which is what the debit card gets used for. We hardly ever use our debit card...unless traveling or an unexpected event comes up that requires money. Even then, we're limited by what's in our chequing account.

**frugalfranny** · 10-31-2009, 02:14 PM

Some interesting reading......thanks for posting.

I can't imagine not having one but always like to read how other people do things differently. Very interesting.

I have a totally free checking (no fees, free checks) so will keep it for sure.

**shp1055** · 10-31-2009, 05:38 PM

I also have free checking and order checks about once every 3 years 'cause I don't use many & the place I ordered them from the last time gave me a fee box if I ordered 3 boxes. No interest, but I don't used it for much except 2 or 3 bills a month.