conpewter
Well-Known Member
Am I the only one in this country that thinks a budget is a useful tool and tries to stick to it? I use the envelope system for most discretionary spending (Groceries, restaurant, entertainment, clothing, fun money etc.) and I pay my bills mostly online.
When I go to the bank to take out the month's budget I get weird looks and all sorts of questions, plus they constantly encourage me to use my debit/credit card to purchase things. They say how much money I could get in cash back rewards etc.
I'm not an economics major but I think "No such thing as a free lunch" applies to those cash backs as well. When I use a credit card at a retailer the retailer is charged by the credit card company (In this case Chase and Mastercard/Visa) and thus the retailer needs to jack up their prices to cover that 3-5% that the card company charges. Then I get back 1% of that in a cash back offer. Meaning I am, in the end, paying more for my products so that the credit card company can line its pockets.
She then mentioned how I could get this or that credit card in case I needed the money for a down payment on a car etc. I tried to explain that I don't need a credit card for a down payment if I think ahead and save for my new car instead! I just think the whole idea of saving for something is completely foreign to today's Americans.
When I go to the bank to take out the month's budget I get weird looks and all sorts of questions, plus they constantly encourage me to use my debit/credit card to purchase things. They say how much money I could get in cash back rewards etc.
I'm not an economics major but I think "No such thing as a free lunch" applies to those cash backs as well. When I use a credit card at a retailer the retailer is charged by the credit card company (In this case Chase and Mastercard/Visa) and thus the retailer needs to jack up their prices to cover that 3-5% that the card company charges. Then I get back 1% of that in a cash back offer. Meaning I am, in the end, paying more for my products so that the credit card company can line its pockets.
She then mentioned how I could get this or that credit card in case I needed the money for a down payment on a car etc. I tried to explain that I don't need a credit card for a down payment if I think ahead and save for my new car instead! I just think the whole idea of saving for something is completely foreign to today's Americans.