No one is more excited about the news of Bin Laden's death than me. Mainly because it knocked the damn Royal wedding out of the headlines. Hopefully I'll never have to hear about Prince William ever again. Just had to get that off my chest.
I was having a conversation with the landscaper at my job recently, he mentioned that he doesn't have a bank account and that he keeps all his savings at home. The rest of convo went as follows;
"You should really put your money in the bank."
"Why? What do I gain out of putting my money in a bank?"
"Well it gains interest for starters, its also insured when its in the bank."
"My money is insured at home."
"Not it isn't, God forbid your home burns down, your money burns with it."
"Yes sir it is, I have apt owners insurance, my money is covered."
" -_- "
To clarify, the only way to insure money is through the FDIC, which insures funds deposited with a financial institution(a bank). People often wonder how Whites, Jews, Asians and other cultures seem to able to start from seemingly nothing and make their way up the economic ladder so much faster than Blacks and Hispanics.
I was having a conversation with the landscaper at my job recently, he mentioned that he doesn't have a bank account and that he keeps all his savings at home. The rest of convo went as follows;
"You should really put your money in the bank."
"Why? What do I gain out of putting my money in a bank?"
"Well it gains interest for starters, its also insured when its in the bank."
"My money is insured at home."
"Not it isn't, God forbid your home burns down, your money burns with it."
"Yes sir it is, I have apt owners insurance, my money is covered."
" -_- "
To clarify, the only way to insure money is through the FDIC, which insures funds deposited with a financial institution(a bank). People often wonder how Whites, Jews, Asians and other cultures seem to able to start from seemingly nothing and make their way up the economic ladder so much faster than Blacks and Hispanics.
Think about an impoverished Black family that you know. Chances are Mama and Daddy were broke, Grandma and Grandpa and so on back. So why is it that an Asian family can be fresh off the boat from Beijing and build a wealthy estate for their children in one generation. They do so because they learned how the financial system in our country works and they use it to their advantage. Go to your local check cashing place, who's on line? Blacks and Hispanics, many of which don't have a checking accounts because they've never been taught the banking system and are as a result afraid of banks because of things they've heard in the news.
The local checking cashing place charges 3.1 % of the check in order to cash it. A person making 40k a year that cashes their checks has already lost over 1200 dollars before they even get the money in their hands. Compare that too a bank, in which a savings acct with a balance of 40k at a rate of 1.5% would net the account holder 600 dollars a year. I cannot tell you how many Blacks and Hispanics I've come across that have never learned to write checks, don't know the difference between fixed and variable interest rates. These are things that are vital to effectively functioning in our society.
It may seem as though I'm focusing on 2 ethnic groups when there are others that do the same. I do so because over the past 5 years working in the financial industry I've come across far more Blacks and Hispanics that were financially illiterate than any other ethnicity. From birth we're taught how to count and spend money, but few teach their children how money really works. Learning the basics of the financial system in this country is one of the keys to being successful.
The local checking cashing place charges 3.1 % of the check in order to cash it. A person making 40k a year that cashes their checks has already lost over 1200 dollars before they even get the money in their hands. Compare that too a bank, in which a savings acct with a balance of 40k at a rate of 1.5% would net the account holder 600 dollars a year. I cannot tell you how many Blacks and Hispanics I've come across that have never learned to write checks, don't know the difference between fixed and variable interest rates. These are things that are vital to effectively functioning in our society.
It may seem as though I'm focusing on 2 ethnic groups when there are others that do the same. I do so because over the past 5 years working in the financial industry I've come across far more Blacks and Hispanics that were financially illiterate than any other ethnicity. From birth we're taught how to count and spend money, but few teach their children how money really works. Learning the basics of the financial system in this country is one of the keys to being successful.
Judybloom220
ReplyDeleteThis is great Information. I think with the economy in such a slump there is added fear amongst the 'working class' when it comes to finances and banking options. The media over the past year has painted banks as a poor system, which leads many to find other options.