Including: What’s the downside of going cash only? And: Should a restaurant tip be based on the amount before or after taxes?
Q: Should you even bother trying to fight bank fees?
A: Absolutely. But make sure that you’ve got a strong case, and that you can prove you’re in the right. A Red Tape Chronicles post tells the story of James Noble, who nobly took Bank of America to small claims court and won a judgment of nearly $900. How did Noble win? Well, one set of fees demanded by Bank of America involved overdrafts—and Noble had proof that the overdrafts were the result of the bank’s sketchy debiting process:
The overdraft fees, he said, were triggered when the bank inexplicably delayed crediting his account with a deposit for an extra 24 hours. He was watching the account closely, he said, and managed to get screen captures detailing what he called unfair debiting procedures. During the next several days, some of his payments cleared, but were then retroactively assessed overdraft fees. Before the incident was over, he owed Bank of America nearly $280 in overdraft fees.
I’d suggest that, if possible, it would wiser to not cut it so close with deposits and payments. Don’t give your bank the opportunity to charge these kinds of retroactive fees. That would seem to be easier than taking screen shots and obsessively monitoring the minutiae of when deposits and payments are made in a given day.
Q: What’s the downside of going cash only?
A: You don’t receive any of the benefits of credit card reward programs—and, in a way, you subsidize these programs via inflated prices. A Bargaineering post discusses the issue, which I also mentioned in a previous roundup of stats: Thanks to credit card reward programs and corresponding higher prices in the marketplace, the poor pay $23 extra per year while the rich are subsidized $756 a year, on average. But, as many people say, depending on what type of consumer you are, sometimes it’s still much smarter to forgo credit cards—and the likelihood of regrettable spending sprees—and stick to cash only.
The higher prices, credit card perks, and lack thereof with cash all brings up another question worth exploring: Should you get a discount for paying cash?
Q: Is your food shrinking?
A: Of course it is. It’s been shrinking for years. Recent case in point: A Daily Beast post griping about the fact that, among other products that have shrunk in size yet still cost pretty much the same, 6 oz. cans of tuna—which were 7 oz. cans of tuna a decade ago—have disappeared, only to be replaced by (what else?) 5 oz. cans of tuna. Prediction: Coming soon! 4 oz. cans of tuna.
Q: Should a restaurant tip be based on the amount before or after taxes?
A: Before. That’s what restaurateurs and etiquette experts say, according to the LA Times. So, if your food costs $100, and, after a 10% tax, your bill totals $110, a 20% tip would be $20, not $22. The problem is that many restaurants that automatically add gratuities or that list suggested tips do so based on the after-tax amount.
Q: When are you old enough for your first credit card?
A: A Mint.com post delves into the question, but doesn’t really give an answer. Why? Because there is no answer that applies across the board. Some 18-year-olds are plenty responsible enough for plastic, whereas there are 45-year-olds out there who shouldn’t be allowed a library card, let alone a Mastercard. The post does argue that 21—the post-reform milestone age when consumers are allowed credit cards without a job or a cosigner—is arbitrary:
I promise that no credit epiphany occurs at age 21. I know plenty of credit savvy 21 years old and even more credit disasters pushing 50. Proper credit management knows no age boundary yet someone felt it necessary to make you wait the three additional years to either be responsible or not.
There is also no new requirement to take a “Credit Cards 101” class in either high school or college, yet it’s hard to argue that it’s not more important than history, music, art, psychology or physical education.
