Paper checks are almost obsolete. The digital age has given people more than a few different ways to pay for, give money, or reimburse people. From automatic bill payments via your banking institution to apps such as PayPal and Venmo, many households no longer even own a checkbook from which to write a personal check. However, despite the abundance of electronic transfer methods, there are some instances in which writing a personal check is the best way to make a payment.
Gifting Money
Birthdays, graduations, and major holidays happen all the time, and many people know that the best gift is the gift of cash. While it’s certainly possible to hand the recipient of your cash gift physical money, it’s not always the most secure way to gift money. Checks are just as easily lost or misplaced as cash, which can happen during a large party or gathering. A card with cash goes missing or is accidentally thrown in the trash. That cash is gone forever. However, a check is not.
If a gifted check goes missing or is thrown away, the recipient can ask you to cancel that check number and reissue another check in its place. It’s a simple matter of inputting the canceled check number, dollar amount, and recipient into your online banking platform to cancel it, and you can rewrite a new check for the recipient. That’s not possible with cash.
Sending Money Through the Mail
Similar to gifting money, you might find yourself wanting to send money to a long-distance friend or family member as a gift. If you’re mailing money, it’s always safer to mail a check than to mail cash. Mail thieves are common in many places, and they often look for mail that looks like a birthday or holiday card. If that card contains cash, the recipient will never get it. While they might not get the check, either, the check can be canceled so it’s not cashed by someone other than the intended recipient.
Paying Bills
If you don’t pay your bills automatically online, never pay the bills by sending money through the mail. Always send a check, a money order, or a cashier’s check made out to the specific bill recipient. If the bill is lost in the mail or stolen, your cash cannot be replaced.
Tracking Large or Important Payments
Writing a personal check makes it foolproof to track payments. Child support, tuition, tax bills, insurance, car payments, mortgage payments, and many other large payments should always be paid using a check that can be traced. Writing a personal check for these items means you can see that the payment was received based on the fact that the check is cashed. Many banks also include an image of the check once it’s been cashed so you can see that the amount, the recipient, and the information on the check are all correct.
Personal checks might seem like a thing of the past, but they are still a safe and effective method of payment. Cash is king, but cash cannot be replaced once it is lost or stolen. Checks are easy to track, and checks make keeping your finances in order much simpler.