Published: October 31, 2008 04:24 pm      

A different way of doing business

Larry Jones, Democrat Columnist

Almost a year ago, my wife and I, along with many of our friends, changed the way we handle our personal daily finances. When shopping at the grocery store, getting gas at the service station or shopping at any number of other types of stores, we quit writing checks, using our debit card, and, for the most part, quit using cash. Instead we use a credit card.

For my entire life, I have viewed using a credit card in the same light as snake handling, sky diving and drug addiction — a pretty stupid and reckless lifestyle. Why the sudden change? We were enticed into the use of plastic money because of significant cash back incentives — up to 5 percent on gasoline purchases, with lesser amounts refunded on all other items.

In light of the surge in fuel costs over the past year, recently this amounted to about 20¢ per gallon, certainly “nothing to sneeze at.” However, if you allow a balance on your monthly statement to carry forward, you’ll be falling into the trap they have set. Instead of paying 5 percent less, you’ll wind up shelling out huge sums in interest to the credit card companies.

Credit card incentives really aren’t anything new. Discover has offered a small refund for many years, though nothing as lucrative as the recent offers. What has really changed over the past 10 to 15 years is how we have begun a transition to an electronic, computer driven lifestyle.

The first electronic innovation in my financial world occurred with the advent of the ATM card. This was, in my mind, a wonderful and convenient way to get cash when banks were not open. For those of you as old as me, you too can remember when banking hours were a bit more restrained — 9 a.m. to 3 p.m. five days a week. Banker’s hours have taken on a whole new meaning.

The convenience of the ATM card was even further enhanced a few years ago. Most banks converted them to debit cards, which, in addition to receiving cash from ATM machines, could be used to make direct purchases. For several years I enjoyed the convenience of the debit card, since it alleviated the necessity to carry large amounts of cash or a check book. The funds were electronically transferred almost instantly, and you can go online to keep track of your account balance.

Banks and other financial institutions have been very innovative in providing many more newer and more efficient ways of handling financial transactions. Of all the changes to the way we manage our assets, perhaps the use of the Internet has had the most impact. With the use of our home personal computer we can pay bills online, view our bank statements, check our credit card balances, make investments, transfer money form one institution to another, and verify transactions have been completed.

Many companies are strongly urging customers to eliminate paper statements and opt for electronic monthly statements that can be printed and stored if you so desire. It has to be killing the Postal Service, because years ago even the government quit sending out paper checks, if at all possible, in order to save mailing costs.

Today, I can get my Social Security “check” sent directly to the bank. I spend it online with a credit card, check my bank balance online, “mail” my credit card payment electronically and receive the merchandise at my door from a man driving a brown truck. Nowadays, I seldom get to even see, much less hold, a Ben Franklin or Alexander Hamilton.

I kind of miss that ...

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Larry M. Jones is a retired Navy Commander and aviator who raises cattle and hay in the Brock/Lazy Bend part of Parker County.