http://m.theatlantic.com/business/archive/2014/07/its-expensive-to-be-poor-money/374361/
But by other important measures, it's awfully expensive to be poor. As Barbara Ehrenreich wrote in her book Nickel and Dimed, many entry-level jobs pay next to nothing with unpredictable schedules. This makes savings, second jobs, affordable loans, and child care all but impossible to arrange. Inescapable poverty changes the way we think about money and time, as short-term concerns glare so blindly that it's almost impossible to make long-term plans. It's expensive to be poor, Ehrenreich says. It's true. In fact, when you don't have enough money, money itself is expensive.
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Instead of direct deposit, many rely on physical pay stubs. Instead of checking accounts, they have to drive to check-cashing services, like Pay-O-Matic. Instead of automatic payments, they drive again across the suburbs to pay utility bills in person. In lieu of a credit history that qualifies them for bank loans, they have a history of cash that is disqualifying. Instead of low-interest loans, they rely on payday lenders whose services can ultimately cost three- or four-times the original loan. And so, replacing the services of a bank on your own becomes a second part-time job, an odyssey of stripmalls, check-cashing storefronts, money orders, prepaid cards, and miles and miles on the road. Ron Brownstein has called it the "archipelago of alternative finance."
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This is Melissa and Alex's story, and it's one of many stories of underbanked Americans told with impressive authority and tenderness in Spent: Looking For Change, a digital documentary produced by American Express that aired at the Aspen Ideas Festival in June. "Turning to pawn shops, check cashing services, and using payday loans to meet basic financial needs can be costly for many of us, with $89 billion a year going to fees and interest for using these types of alternative financial services," they write. Unbanked families spend 10 percent of their money replacing traditional banking services. That's as much as most families spend on food.
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But it's also a opportunity for technology. It doesn't have to be so terrible to spend the money we earn. There are many ways that mobile apps can begin to replace the infrastructure of banks, allowing us to send money to friends, family, and businesses, and manage the sum that's left over. Digital prepaid accounts that allow online payment can turn paychecks into bill payments without aggressive fees or hours of traveling the archipelago of alt-finance. To spare individuals from the clutches of payday lenders, banks can find ways to measure trustworthiness in ways that go beyond official credit reports.
Emphasis mine.