Question of the Day: How long has the average U.S. adult used the same checking account?

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Nov 07, 2017
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Checking Accounts, Question of the Day, Behavioral Finance, Research

Answer : 16 years

From Bankrate: 

"The average U.S. adult has used the same primary checking account for about 16 years, according to a survey conducted for Bankrate and MONEY. More than a quarter (26 percent) have held onto a checking account for more than 20 years. Being loyal to a bank is fine if you’re getting a good deal. But the survey also finds the average checking customer pays about $14 a month in fees. “If you’re paying any kind of fee or having to strand a balance in an otherwise low-yielding account, then it’s time for you to look for better alternatives,” says Greg McBride, CFA, Bankrate’s chief financial analyst."

Questions:

  • Do you think it is a good idea to have such a long-term relationship with a bank? Why or why not?
  • How long do you think your parents have been with their current bank?
  • Why do you think that adults tend to stick with the same bank for such a long period of time?
  • What would make you want to switch banks?

Here's the ready-to-go slides for this Question of the Day that you can use in your classroom.

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Want students to experience what it feels like like to open a bank account? Check out this NGPF Activity, Role Play: Opening A Savings Account

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NGPF has just started a new service: The Daily QuoD (that's Question of the Day in NGPF-speak!). Subscribe to our blog (right hand side of NGPF Blog homepage) and you will receive a new QuoD every weekday during the school ready to use in your classroom. Enjoy!

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.