Mindful Money: How Checks Help Conscious Spending

To many of us, checks may seem like an outdated form of payment. However, the fact of the matter is that their value is resurging in the modern context. So much so, even 42% of Millennials report still using checks as a method of payment — more than the percentage that plays video games! 

Many current-day circumstances are contributing to the check’s once-again rise in popularity. One of these circumstances is the newfound tendency toward conscious spending. The pandemic specifically has driven users toward spending their money more on essentials than unnecessary luxuries for obvious reasons, but how does this compare with overall attitudes? 

According to a survey conducted by TD Ameritrade, 64% of Americans expect their spending habits will continue to improve post-COVID-19. Assuming those 64% surveyed stay true to their word, it might be worth investigating how checks can help influence more mindful spending habits. 

Paper Trails = Easy Monitoring

Each check you write comes with its own personal receipt. When you write checks, you keep a record of your purchases in your checkbook register. Not only does this practice help you build accountability for your purchases, but it allows you to more easily monitor your spending habits. 

Furthermore, it also allows for better budgeting. This record of spending can be immensely helpful when you decide it’s time to cut back on spending. One glance at your register will allow you to see which areas of your life and spending can be downsized — as well as which aspects fall under essentials (such as bills, utilities, etc.)

When this information is front and center in black and white, without you having to log into your individual online accounts to monitor spending in each area, it’s much easier to conceptualize your overall financial situation. 

Decreased Spending

Though checks are notoriously used for larger purchases, they actually decrease your overall spending. According to Consumer Reports, several academic studies show that people spend way more money when they pay by card or smartphone (Apple Pay loyalists, rise up!) than when they pay with a check. 

Much like cash, a check is a feasible representation of the money you’re spending. When you write out a check, you can very well see the amount that’s coming out of your pocket. Meanwhile, when you pay with cash or a smartphone, this invisible transaction makes it difficult to conceptualize just how much money you’re giving up. 

Less Impulsive

The same qualities that drive people away from check use are the ones that also make the best arguments for check use. Yes, checks take time. You have to whip out your checkbook, write out the long-winded information of the purchase — including the dollar amount in words and numbers — then add a memo and your signature. 

However, this process is exactly what contributes to the mindfulness aspect of check-writing. You’re far less likely to make an impulse purchase when you have the time it takes to write a check to really consider the logic of that purchase. 

Furthermore, checks are easier to store in your checking or savings account these days than cash, putting them out of sight and out of mind. When you receive cash from someone, you place it in your wallet and immediately think of the opportunities to spend it. When you receive a check, you can mobile deposit it into your savings account within minutes and eliminate the danger of spending it or simply cash a check to use it right away.

Encourages Noble Pursuits

You might be thinking: Hmm, this point seems a little weird. Well, perhaps it is, but this is where we really tap into the “mindful” part of mindful spending. This pandemic might have us thinking about not just how much money we spend but what exactly we spend it on. Is it fair to purchase cashmere sweaters from Macy’s when there are neighbors in need of help? 

The truth is, when it comes to charitable giving, checks lead the charge. Do you have a local small business that’s having a hard time scraping by? Perhaps one that doesn’t accept digital payments due to a lack of means and steep transaction fees? Chances are that small businesses will gladly take a check. 

Charities and non-profit organizations are often in the same boat. Many prefer checks as they don’t come with transaction fees that otherwise cut into the amount of your charitable donation. Furthermore, checks provide an ample paper trail for you as a spender, allowing you to later write off those donations quite easily come tax season. 

As we enter the New Year, thoughts of new trends may flood our attention. Most of these are intriguing for their novelty, but not much else. The tried and true trend of using checks is still standing, and you can hop on the bandwagon by purchasing personal checks for yourself or your loved ones. In the event you need an added incentive, know that there are countless fun designs to choose from as well. 

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