Have Check Cards Hurt Your Budget?

For some, the creation of the "check card," or debit card, has been the greatest thing in the world. They never leave home without enough money and check cards are generally accepted at any place that accepts credit cards.

For others, it is the curse that plagues their budget. Not only do budgets require time to keep track of where your money is going, but now, you have to determine which category your trip to the store falls under. Is it household or entertainment or both? Who has that kind of time?

The Budget-less

For anyone without a budget, a check card keeps you from always carrying cash and/or a checkbook. Whenever you need to make a purchase, all you need is your check card. If you do not want to go into the gas station, you can pay at the pump. Check cards are being accepted at more and more places, especially if you have one that carries a Visa or MasterCard logo on it. In general, it makes your life a whole lot easier.

For the Budget Conscious

The budget conscious, however, may find the invention of the check card a little frustrating. Now, everything from your one dollar drink stop to your one hundred dollar grocery bill is put on your check card. This could either hurt or help your budget.

On one hand, by using your check card you have a stack of receipts that allow you to record detailed transactions for your budget. At the end of the day, or week, you simply label each receipt and add/deduct it from your budget, depending on your system. Now you have records of gas/transportation, grocery, entertainment, and more, although sometimes you need to sort out your receipt into more than one category. The only budget category that is left out is utilities, although most of those are also accepting check cards, either in person, on the phone, or via online bill pay methods.

On the other hand, a check card can mean a lot more work, especially if you have allocated a specific amount of money for each category in your budget. In cases like these, a check card gives you more freedom to spend a dollar here and ten dollars there. If you have some categories, like entertainment or dining out, that only allow for a small amount of money, you may find yourself going over your limit when using your check card.

For anyone, a check card can hurt your budget if you are not aware of when and where you spend your money. However, part of being an adult and using a budget for your money is being conscious of where your money goes. If you cannot do that with a check card, it is better to work in cash until you are able to control how much you spend. If you have a surplus of money and you are not worried about a budget, then by all means, check card your purchases to your hearts content, which is probably what you would be doing with the large sums of money in your wallet.