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How Finances Have Changed Over 20 Years

How Finances Have Changed Over 20 Years

People like to joke about “when I was your age,” but the fact remains that the cool, rebellious grunge kids of Generation X have grown up into the responsible 30 and 40-somethings of today. They will be the last generation to handle finances in the old pen-and-paper way, and while these changes have unfolded gradually over some years, it’s sometimes jarring to think about how money was handled “when I was your age.” Consider the way these things have significantly changed:

Paying Bills

20 Years Ago: That checkbook that you keep shoved in a drawer? 20 years ago, that checkbook was your lifeline; you needed it to pay and mail every bill, making record keeping utterly important, as well as a large supply of stamps to send all those payments in.

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Today: How do you want to pay your bills? Today, the choice is up to you. You can use the old way of sending a check. You can keep a credit card on file for automatic payment. You can send your bank or credit union account and routing numbers to your online account for payment. You can also use various services such as PayPal or your financial institution’s billpay system. Digital banking is all about flexibility.

Keeping Records

20 Years Ago: Checkbooks weren’t just used for writing checks. Two decades ago, the checkbook was also the place you kept all your records. The phrase “balancing my checkbook” meant actually compiling all of the deposits and debits to see if the numbers made sense, and if they matched up with your monthly statement. It was the manual way to make sure you didn’t overdraft or get things out of place with your finances. Records of your checks were either written as line-items on your checkbook’s ledger or with carbon copies of each check, or even both.

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Today: Financial institutions have a secure online portal now that allows instant access to real-time records and a scanned archive of your deposited checks. Records may even be accessible on your smartphone, as many banks now have apps for financial management.

Getting Paid

20 Years Ago: Direct deposit was in its infancy, and for many people, you still got a physical check every two weeks. Depending on where you worked, your check was either mailed to you, or distributed at your office; that usually meant a trip to the branch rather than simply knowing it was electronically transmitted (an entire episode of the cult 1990s show The X-Files used rushing to the bank as the basis of its plot), and if you lost the physical check, it could take time to receive a replacement.

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Today: Wherever you work, you simply fill out a form with your information (account and routing number) and your paycheck magically appears in your account upon payment. This saves loads of time and effort since you don’t have to go to the branch, though it’s still worth it to regularly check and make sure there’s nothing funny going on with your deposits. Many institutions now allow for check scanning via a smartphone app as a means of deposit as well.

The Little Things

20 Years Ago: Cash was a common thing. In your wallet, on the entryway’s side table, change in your pocket – all of these places would be sensible ideas for keeping coins and a buck or two. Simply put, you never knew when you were going to need it. At the same time, you’d still have to be on guard with it because unlike digital transactions, cash could be stolen. Cash was the go-to for so many things, from simply paying for items at the store, to leaving a tip for service. If you didn’t have enough with you, tough beans, you weren’t buying it that day.

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Today: Modern finances make cash practically obsolete, though there’s certainly something practical in keeping some around. You can pay entirely by credit card, including tip, at most places. You can split the tab with friends using apps, you can pay bridge tolls through electronic sensors, and many vending machines and parking meters take cards, at least in major metro areas.

What’s Stayed the Same

The way we pay and make records of our finances has changed wildly in the digital age, but one thing remains constant: you need to be smart about how you handle your finances. In fact, it’s probably easier to give into spending temptation when everything fits on a card or you don’t have tangible cash to use (there’s been a study on this). You still need to manage your accounts, you still need to look at sound ways of investing, and you still should consider things like credit unions as a means of financing with better interest rates. These notions existed 20 years ago, and they’ll continue to exist 20 years in the future, despite however technology evolves the means of transaction.

Featured photo credit: jarmoluk via pixabay.com

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Bill Prichard

Senior Manager, Corporate Communications at CO-OP Financial Services

How Finances Have Changed Over 20 Years

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Published on November 11, 2020

10 Best Ways to Save Money Faster and Smarter

10 Best Ways to Save Money Faster and Smarter

People love to talk about budgeting, reducing spending. and investing. But unfortunately, talk is cheap, and poor money management is expensive. It’s easy to talk about the best way to save money, but putting it into practice is a different thing.

What people need to talk about is the practical and efficient ways you can quickly save money to accomplish your goals. After all, they don’t teach this stuff in school.

Here are the 10 best ways to save money faster and smarter.

1. Cancel All Your Subscriptions

Yes, all of them.

Okay, you can keep your wifi and trash. But other than that, cancel all your monthly subscriptions for one month. You will survive, I promise. Better yet, you will realize you won’t miss all of them.

Now that you have had 30 days to examine what you really missed and what you never thought twice about, you can add some of them back in. The others? you never have to think about them again.

This is something you can and should do with every part of your life. If it’s clutter, cancel it. Being able to step back and see what is cluttering your life and what is excelling your forward helps improve your quality of life and financial standing.

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2. Automate Savings From Your Paycheck

Many of us are so excited about getting a new job that we rush through the paperwork during the hiring process. Good news for you, I have had lots of jobs so I have seen it a million times.

There is an option for a portion of your paycheck to go directly into a secondary savings account. This is by far the most effective way to save money every month. We tend to spend most of what we have. So, if we take it off the top first, then it’s less likely to be spent. Just head over to HR and ask. It will only take two minutes.

3. Cancel the Happy Hours for the Rest of the Pandemic

We are in the middle of a global pandemic, which means that there is no better time to buy some drinks from the local store and stop shelling out $5 a drink at the local cocktail bar. When we look back at our bank statements, we are always shocked that fast food and alcohol can add up so quickly. You can easily save a couple of hundred dollars just by taking this step.

A great exercise is to print out your last bank statement and highlight all the areas of alcohol and fast food. The amount may surprise you and make you think twice about that old fashion.

4. Online Grocery Shopping

Some people think online shopping increases the amount they spend. For the most part, I would agree—except for this category.

Online grocery shopping is now a no-brainer, though. Whenever you walk through a grocery store, two things always happen: you always grab impulse items, and you never know the total of your cart until you checkout. This means that we always spend more than we originally planned.

With online shopping, you can see your total as you add items to your cart. You are way less inclined to make those impulse purchases and because of that, I would venture to say that you could even pay to have them delivered to your door and still save money each month by choosing online grocery shopping.

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5. Get a Famzoo Debit Card

This is something my wife and I swear by, and it’s great for the entire family! Famzoo strictly exists to help families and kids budget their money better. Each month, my wife and I have an allotted amount loaded onto our pre-paid Famzoo debit card. This amount has changed every year depending on promotions, kids, stage of life, etc.

The important part is that when you give yourself the freedom to spend a certain amount, you are more likely to only spend the allotted amount. Think of it as a diet. If you are counting calories, you are more likely to stick close to the amount you set. You can also look for some tips online to better stick to your family budget.

6. Purge

This is actually my favorite to do, and it is actually one of the best ways to save money. Raise your hand if you have ever moved. Okay, so everyone.

When we move, we are always amazed at how much junk we have acquired. I have found that about every 6 months, I can find a couple of boxes to sell online of things that we never use. This not only gives you so extra quick cash, but it also keeps your house more tidy and organized.

Now, go clean out that garage!

7. Amazon Subscribe and Save

32! That is how many items I have setup on amazon subscribe and save. Let me explain.

This sounds expensive, I know. But it actually saves us hundreds of dollars per year! We all need toothpaste, shampoo, razors, laundry detergent, toilet paper right? This feature is truly a triple threat. When you have more than 5 items on subscribe and save, you automatically unlock the max savings for every product on your list. This can be up to 20% per item!

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Now, even better is that it ships straight to your door on the exact day you want the item, maybe monthly or maybe you only need it every 4 months. This way, you never have too much or never run out. Either way, it’s totally customizable.

Lastly, there is no contract for any items, which means you can switch brands or items at any given time at no cost. My advice: every single staple item should be on your subscribe and save.

8. Rewards

This may ruffle some feathers, but if you are using your debit card for purchases, you are missing out on free money! We have this notion that credit cards are evil but in reality, they are the same piece of plastic as your debit card.

How you use it can be bad, don’t get me wrong. But if you want my opinion though, ditch the debit card and get a rewards credit card. Use it just like you would your debit card and make sure to pay it off as soon as the statement comes in!

Just to give you an idea of how powerful this can be in terms of money, here are some things that our miles have paid for:

  • 4 nights in Vail with Flight
  • Rental car in Vail (convertible might I add)
  • Flight to Ireland
  • Flight to Hawaii
  • Multiple staycations at very nice Hotels

That’s roughly about 7 thousand dollars in travel expenses so far! Remember that the credit card is just a tool and can be one that benefits you if you use it wisely. Ironically, this can be an effective way to save money.

Pro tip: If you don’t trust yourself carrying around a credit card, then set up all your monthly bills with your credit and leave it in a drawer at home. This way, you rack up miles but don’t get tempted to overspend.

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9. Vacation With Friends

Now, I know travel is hard right now but what a perfect time to go grab an Airbnb in the woods with a couple of friends and detox from the world right now!

Vacationing alone can be pricey and get rather boring quickly, but if you split lodging and set out for a road trip, it can become affordable quickly! For a couple of hundred bucks apiece, you can have one of the most relaxing vacations ever. Don’t forget to pick up your food at the local grocery store to avoid eating out every meal!

10. Make a Budget

When is the last time you updated your budget or made one for that matter? Making a budget is like writing down your goals. If you don’t make a budget, then you will struggle to save.

How can you know if you are spending wisely if you are not tracking everything?

Our advice would be to get a finance app like Mint, Every dollar, or personal capital. All these apps are free and do a tremendous job of tracking spending and budgeting. I still am old-school and have an excel spreadsheet which I do highly recommend.

Work Smarter, Not Harder

The entire goal is to boost your bank account while reducing the effort required. Efficiency is the name of the game, and automation is the key player. Luckily, we live in a world that has more perks than we can ever take advantage of. But if I were to choose a few, it would be the ones above.

Taking on all 10 of these steps may seem a little daunting. You can first try to pick three of your favorite and start there. Saving money doesn’t have to be a chore as long. As we use the tools correctly, it can be quite effortless. And now, you have a great blueprint to get started!

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Featured photo credit: Sharon McCutcheon via unsplash.com

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