Many Americans not well-versed in money management
While the economic downturn appears to be steadying, many Americans still find themselves in financial situations they'd rather avoid. As plenty of people still struggle with monthly expenses and money management, they may choose to set aside their credit cards and rely more on traditional forms of payment, which will call for business owners to implement a dual purpose cash and check scanner.
Americans could improve financial knowledge
The "National Financial Capability Study" from the FINRA Investor Education Foundation revealed many Americans aren't able to save at all. Only 41 percent of Americans spend less than they make, while 36 percent break even and 19 percent spend more than they earn. This results in few people being able to prepare for emergencies or set up a savings account - the study found a mere 40 percent of people have money set aside for a rainy day.
People may be spending more than they earn thanks to the prevalence of credit cards and temptation to spend. However, putting most payments on credit can lead consumers to spend more in the long run - and force them to deal with high interest payments if they can't pay the charges every month. The research showed 34 percent of Americans only paid the minimum monthly balance on their credit cards in 2012.
Many may also have chosen the cards that weren't necessarily right for them, resulting in higher interest rates and potentially lower credit scores. Sixty-one percent of Americans didn't compared credit cards when applying for one.
Cash, checks can help consumers get back on track
When consumers rely on credit for most purchases, it could be more difficult for them to track spending, stay on budget and manage their expenses while still putting money in a savings account. As a result, more people may aim to reduce how much they charge monthly or stop using their cards entirely.
By turning to cash and checks, shoppers are better equipped to stay within their spending limits or they risk overdraft fees or coming up short for other payments. This can help them learn to better manage their budgets and spend less. To accommodate those shoppers who may be increasingly interested in putting down their credit cards and sticking to a budget, retailers will need to obtain the latest cash and check scanning machine and invest in remote deposit capture technology, as these tools will ensure companies are prepared to handle such transactions.
July 12, 2013