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Only... it isn't like this at all. Bob messed up his math some time ago and now can't get a bank account: Alternatively, most banks in his area charge fees to
by Broken_Hippo 5y ago
Only... it isn't like this at all.
Bob messed up his math some time ago and now can't get a bank account: Alternatively, most banks in his area charge fees to poor people - enough that it pays to have a prepaid card because the fees are lower than a bank. Heck, it might even be through the employer because more and more employers have stopped offering paper checks.
Bob probably pays someplace like H&R block for his taxes. It is really, really difficult to miss that it is tax return time if you are poor, so most folks will file if they think they are getting some back. People finally get their cars fixed and are able to go to the doctor or finally buy some shoes.
Or Bob might not. If Bob and Alice do not have children, they won't get much back in taxes, assuming they make minimum wage and work 35-ish hours a week. They might even owe if they are married - assuming that two full time jobs will still put the couple in a higher tax bracket. (Unless, of course, they have fixed this in the last decade, but I doubt it). If Bob avoids filing, it is probably because either he owes or doesn't think he'll get enough back to pay the folks to do it.
Alice might make similar choices due to fees and things. Or she might find herself in a similar situation simply because she got sick and lost pay or lost a job - especially if she wasn't taught how to deal with being poor. It doesn't always matter if something is better long-term if you are struggling month to month, and you don't always get a say in how vicious your cycle is.
- xyzelement 5y agoBroken_hippo, your response seems illogical to me. I am comparing a savvy person (Alice) and an un-savvy one (Bob) to show an example how even in a hard situation, being thoughtful about your finances is worthwhile. You respond with a list of generic hardships but the points remains that one can navigate them poorly or well. For example: > Alternatively, most banks in his area charge fees to poor people One example of being savvy is being aware of things like that. The fact that most banks do X doesn't matter as long as you have the savvy to use one which does not. So 99% of people might go for these rip-offs but the 1% of the people who doesn't is better of. That's the point I am making - being poor but able to navigate this puts you at a massive advantage compared to others, all other things equal.
- oblio 5y agoWhich banks don't charge anything for having a bank account?
- kirubakaran 5y agohttps://www.google.com/search?q=no+fee+checking+accounts https://www.google.com/search?q=no+fee+checking+accounts
- Broken_Hippo 5y agoI'm pointing out that your examples just aren't based in reality, and aren't describing things that are "savvy" and "un-savvy". These also aren't massive advantages: The folks with tax checks are generally folks with children, and they aren't generally getting an advantage others in a similar situation aren't getting: Pretty much everyone knows about tax refunds. Childless folks don't get much, though, so it isn't really a massive advantage. None of it is. Even when "All other things equal". Unfortunately, what actually IS often a massive advantage is luck of circumstance. Somewhere to stay so you can get back on your feet, for example, or lucky enough to qualify for help paying for your medicine or your child's private school tuition. Lucky enough to be poor in an area you can walk to stores and work or lucky enough to live somewhere with a robust safety net. Lucky enough to be healthy, lucky enough to avoid getting pregnant, lucky enough to be able to buy birth control.