What the Heck is a Check? - Part 1

I was talking with a colleague the other day who happens to be part of the younger half of the Millennial generation. She had just come across her first ever returned check notice while processing the incoming business mail and had a few questions about how paper checks work, what makes a check bounce, and the relative safety of checks as a form of payment. She mentioned she doesn’t remember ever writing out a paper check nor does she own a physical book of checks for her bank account. As part of the older half of the Millennial generation (also known as Xennials), this was very intriguing to me. I felt it might be a good opportunity to help educate our #adulting101 readers by answering 6 common questions about checks and why many people still use them.  

Do Millennials still write checks?

Yes! As the Millennial population ages into later stages of life with kids and home ownership, having a checkbook to pay for things like repairs to your home or make a down payment for a child’s summer camp becomes increasingly important. These are usually the small businesses mentioned earlier that likely don’t accept credit card payments or prefer checks to reduce their overhead costs. According to this study by Harland Clarke, 87% of Millennials have written a check within the last 3 months.

As you can see, while payment apps are still increasing in popularity, it’s unlikely the need for a paper check is going away anytime soon. If you think you might need to order a box of checks, ask your bank or credit union if they offer them for free. If not, shop around online for the best deal. Unless you decide to start writing checks in place of using Venmo® or your debit/credit card, it’s likely you’ll only need one box to tide you over for years to come. Don’t forget to always be sure you have enough money to cover any checks you write on your account.

- Margaret Gooley, CFP®, Worley Erhart-Graves Financial Advisors