Why do Mexicans cash their checks inside the bank and other monetary oddities?

Who enters the bank these days? Mexicans (and other Latinos) do it! When they pay them, they take their checks directly to the bank. But they pass the outside ATM, enter the branch, and line up. They arrive at the cashier, cash their check and leave the building happily; until the next 15 or 30 days when they return. Apparently, cash is the king of my people. I started wondering about this many years ago and came up with the following theories as reasons why my people don’t power machines!

For starters, many of your local shopping venues only accept cash. It is possible that the small owner of the Super Market has not yet purchased (or is willing to pay for the services of) a debit system. Have you ever stopped at a taqueria in the Mexican part of town, ordered your carne asada burrito and were told, “Cash only”? Should have read the sign near the register, huh? I have done this myself several times. Luckily for us, the restaurant owner has conveniently placed an ATM inside his home. Only $ 2.00 for $ 20.00. Caramba! Why else do Mexicans need to cash their checks at the bank as soon as possible? Pay the rent! Yes, many of them walk with their envelope to the leasing office, to the landlord and pay in cash. Some prefer to use a money order. Money orders aren’t free the last time I checked, so this is just a sure way to have less money to put to work over the course of many years.

My other theory is that Mexicans don’t trust banks or ATMs with their money. “Those bankers are going to rob me!” I’m kidding. There is some mistrust between the banks, the bankers, and the Mexicans, but I think it’s really more about the possibility that a lot of my people are not as tech-minded as other ethnic groups, especially the older generations. Monitoring an account online for funds is difficult to do without an internet connection at home as well. However … and this defies my theory … almost everyone has a smartphone these days! You can simply upload an application to easily verify your checking account. I do not know. I am a confused Mexican.

Going to the bank to cash a check is better than paying for the check cashing service, I guess. So I congratulate anyone for choosing not to spend $ 1 for every $ 100 somewhere in the city. Still, time is just as valuable. Spending 15 minutes online to cash a check at a bank twice a month equals 30 minutes a month or 6 hours a year! That’s downtime, like sitting in traffic, you would rather make it up. Do not waste your time!

If you think the banking habits of Mexicans are strange, try this one: Mexicans use this money saving system called tanda. Says so. A family member or friend receives, say, another nine to agree to contribute $ 100 a week in a batch or batch, and each week someone receives the “$ 1000.” Really $ 900 plus your $ 100 that you don’t send to the organizer on your turn. The numbers are assigned randomly. So if you have number 1, you get the $ 1000 in week one. If you have the number 10, you pay $ 100 for 9 weeks and you get $ 1000 in week 10. Do you understand?

The whole idea behind a batch is to commit to saving not only for yourself, but also for others. You may be disappointed that you are not sticking to a budget, but would you disappoint Uncle Jose or Grandma Maria? Probably not, unless you didn’t mind being ostracized for not paying your share. Can you imagine constantly having your grandmother’s evil eye at the barbecue gathering on Sunday? Oh boy.

My mother used to participate in batches many years ago. When I was a teenager, I thought batches were great; today I question its usefulness. For one thing, can you trust that all members will pay and pay on time? Can you trust the organizer to be responsible enough to charge everyone and distribute the money to its rightful recipient each week? This is only half.

Aside from the forced savings, there is the obvious lack of performance. A batch is essentially an X week unsecured bonus with 0% yield! My people, why not open at least one money market account? You can get 0.88-1.0% right now with an MMA. Ally Bank is a perfect destination for your weekly savings of $ X. What? You don’t trust an online bank either? Do you trust Uncle José more? Oh boy!

Leave a Reply

Your email address will not be published. Required fields are marked *