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Even though consumer banks seem to be opening on every block these days, a new study from the Pew Charitable Trust shows that a staggering 12% of New York households still don't have bank accounts, preferring to cash their checks and hide their savings in their houses. Many of those are low-income earners and the NY Times cites LES bodega owner, Jose Alberto Abreau, as an example: "When he makes 'good money,' he said, he asks friends to take it to his family in the Dominican Republic." Additionally, he has repeatedly refused offers from credit union workers trying to convince him to build a credit history. Not surprisingly, the volatile economy hasn't helped banks earn anyone's trust. Peter Mosbacher of Amalgamated Bank admitted that they "are having that challenge to get people to understand that the American banking system is stable." Maybe the skeptics are on to something, though, because how is anyone supposed to trust banks when they take years to catch NYU scammers?
News Flash? Poor New Yorkers Don't Trust Banks
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was there really someone under the subway at times square (42nd) like half and hour ago?
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Thats because poor NYers are illegals, sub-minimum wage labor paid in cash, wanted men or drug dealers. No bank accounts for either 4, (some say for illegals banks conveniently ignore that you gave them an ITIN number and not a SSN, some banks allow no SSN no-interest accounts).
Actually this is too common among all poor people.
Poor rednecks in Kentucky or Alaska aren't as likely to have bank accounts either.
once you have your bank account frozen, you learn not to have a bank account.
I'm sure not having a bank account also helps one not to declare income to the IRS, or to avoid immigration problems (you need a SSN/tax ID number to open a bank account). So I bet that makes up a great part of that 12%.
Cash will always be king because nobody can trace it.
What they completely left out of this article was the fact that you do not just walk into a bank anymore with money and expect them to welcome you with open arms. Those days are over. They will run credit check on you and send you on your way if there are any blemishes at all on your report.
you are correct, sometimes I think they don't want extra business. but they sure do freeze your account quick, no questions asked.
Scrooge McDuck didn't trust banks, so he built a Money Bin to store his fortune. But it does not have the FDIC protections banks do against thieves like the Beagle Boys.
Why trust evil bankers when you can put your blind faith in those kind-hearted, unselfish and totally efficient bureaucrats and politicians with something as important as, I don't know, your health care to pick an example at random.
I used to work with a guy, an IT Manager, who didn't have a credit card, didn't have a bank/checking/savings account, didn't have a driver's license, and didn't have a lease with his name on it (he paid for the sublet in cash).
Our employer was able to cash his checks to cash, so he kept wads of it in his sock drawer, and he made decent money (still does).
Oh, and he didn't have a home phone, cell phone, cable, or internet at home and only rode his bike (hasn't ever bought a Metrocard). You would think a guy like that is crazy, but I think everyone frankly admired his restraint in living a largely consumer-free lifestyle.
I think the only thing he did have to identify himself was a library card. I'm assuming he also had a social security number since I did see him with a passport once when he traveled to Europe for work.
Maybe not. I got my passport years before getting a required social security number for college.
When you don't have a bank account it probably means you're doing something illegally. Have cash and the IRS doesn't get involved or know about it.
Most of the time if pay a plumber, electrician, gardener etc cash they wave the tax right off.
On the one hand, people don't lose their money in an insured bank (under a 6-digit limit), but banks are aggressively trying to charge everyone ripoff fees. (Still, check cashing services are doing few of their customers a favor with what they charge.)
However, in the long run, you will need the credit history/services you can only get from a bank to finance a mortgage, your own business, student loans for your kids, etc.
That's the very credit that enables the poor to get out of poverty.
I love how the "News Flash" was posed as a question.
The population in those neighborhoods isn't smart enough to grasp the concept of modern banking.
maybe if more banks had coinstars
I've recently hidden all of my cash in the walls of Kaplan Brothers Blue Flame Corporation at 523 West 125th Street.
There's always money in the banana stand...
lolz
There are people in this world that have no aspirations. I met them when I was in the service. They were the perpetual AWOLs and deserters. They live by their wits until they OD or are killed attempting to rob a gas station. They don't have bank accounts, mortgages, marriage licenses, leases, driver's licenses, GEDs, mailboxes and in many cases teeth. They do , unfortunately, have children.
cash is king thought they're making it very hard nowadays.
a passport is plenty good enough for ID. of course, some believe gold is the standard.
I have a feeling a car dealer or real estate agent will turn away an all cash deal. don't need no credit fo dat.
And this is why some poor people get poorer. But JacqueM is right. Cash is king, until the corner drug dealer breaks in and steals all your money under the mattress, your idiot nephew having tipped him off. And the only people who get their banks accounts frozen are either criminals or losers, which is another word for stupid criminals.
but you can deal all in cash and not get poorer.
I know many Asians who instead of partying and drinking, work and save their money for a home while living at home with their parents. those Asians also pay for their car with cash. no need for a mattress, a safe bolted to the floor would suffice. or any in wall, under floor safe.
if one lives simply without an Iphone, internet, etc it can be done. don't get caught in wanting "the best" toy.
and, with cash you can get Pb.