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(Note, I'm a software engineer in California but this is based on what I've heard from others/read) Something else that I've heard from other people/read about

(Note, I'm a software engineer in California but this is based on what I've heard from others/read) Something else that I've heard from other people/read about is how basically it takes money to save money. For instance, most of us have bank accounts that don't charge any monthly fee and we're fine having to keep a minimum of $25 or so in the account. But if you're poor, that's a lot of money to keep locked up, which is why my guess is that a lot of people don't have bank accounts. They then have to cash their checks at places that take a good sized bite out of each pay check. People living pay check to pay check also likely can't wait the few days it takes for a bank to clear checks. It seems like there's got to be a better way of paying people who don't have a bank account so that they can access the money right away and don't have to pay fees. From what I've heard, you can be on food stamps/other assistance but if you cross a certain line in terms of income you can't qualify anymore, instead of gradually diminishing as one makes more.

gizmo686 12y ago
I have no experience with this, but is it really that difficult for a business to pay its employees in cash if requested?
uiri 12y ago
> It seems like there's got to be a better way of paying people who don't have a bank account so that they can access the money right away and don't have to pay fees. I think it is called "cash". Turning a piece of paper (ie: a paycheque) into cash costs money and so does turning cash into a piece of paper (ie: a money order to pay rent or a utility bill). The banking system isn't free. It is much more profitable for the bank to prey on the poor who have no capital to offer up and who have no time to research their different banking options than it is for a bank to offer affordable services to low-income customers. Cash costs money to mint and print as well but that's hidden in seigniorage, taxes and inflation. There are payroll cards (in lieu of cheques) for employees without bank accounts but, since the card issuer's true customer is the employer, they often hit employees with high fees for everything which end up costing more than a bank account would.

gizmo686 12y ago

I have no experience with this, but is it really that difficult for a business to pay its employees in cash if requested?

uiri 12y ago

> It seems like there's got to be a better way of paying people who don't have a bank account so that they can access the money right away and don't have to pay fees. I think it is called "cash". Turning a piece of paper (ie: a paycheque) into cash costs money and so does turning cash into a piece of paper (ie: a money order to pay rent or a utility bill). The banking system isn't free. It is much more profitable for the bank to prey on the poor who have no capital to offer up and who have no time to research their different banking options than it is for a bank to offer affordable services to low-income customers. Cash costs money to mint and print as well but that's hidden in seigniorage, taxes and inflation. There are payroll cards (in lieu of cheques) for employees without bank accounts but, since the card issuer's true customer is the employer, they often hit employees with high fees for everything which end up costing more than a bank account would.