The number of American households that were unbanked last year dropped to its lowest level since 2009, a dip due in part to people opening accounts to receive financial assistance during the pandemic, a new report says.
Roughly 4.5% of U.S. households – or 5.9 million – didn't have a checking or savings account with a bank or credit union in 2021, a record low, according to the Federal Deposit Insurance Corporation's most recent survey of unbanked and underbanked households.
Roughly 45% of households that received a stimulus payment, jobless benefits or other government assistance after the start of the pandemic in March, 2020 said those funds helped compel them to open an account, according to the biennial report which has been conducted since 2009.
"Safe and affordable bank accounts provide a way to bring more Americans into the banking system and will continue to play an important role in advancing economic inclusion for all Americans,'' FDIC acting chairman Martin J. Gruenberg said in a statement.
A lack of banking options delayed some households from getting federal payments aimed at helping the country weather the economic fallout from the COVID-19 health crisis.
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The FDIC initiated an educational campaign to get more Americans to open an account to enable the direct deposit of those funds. And banks such as Capital One and Ally Financial ended overdraft and other fees that have been a key barrier to some Americans accessing the banking system.
What does it mean to be unbanked?
A household is deemed unbanked when no one in the home has an account with a bank or credit union. That share of households has dropped by nearly half since 2009. And since 2011, when 8% of U.S. households were unbanked, the highest since the start of the survey, and the record low reached in 2021, roughly half of the drop was due to a shift in the financial circumstances of American households the FDIC says.
Who are the underbanked?
Those who have a checking or savings account, but also use financial alternatives like check cashing services are considered underbanked. The underbanked represented 14% of U.S. households, or 18.7 million, last year.
Why are people unbanked or underbanked?
Many of those who are unbanked say they can't afford to have an account because of the fees for insufficient funds and overdrafts that are tacked on when account balances fall short. Roughly 29% said fees or not having the required minimum balance were the primary reasons they didn't have a checking or savings account, as compared to 38% who cited those obstacles in 2019.
Are some groups more likely to be unbanked?
The numbers of the unbanked were greater among households that included those who were working age and disabled, lower income, included a single mother, or were Black or Hispanic. Among white households for instance, 2% didn't have a bank account last year as compared to 11% and 9% of their Black and Hispanic counterparts.
Meanwhile, nearly 15% of households with a working age member who had a disability were unbanked compared to almost 4% of other households. And nearly 16% of households with a single mother were unbanked as compared to about 2% of married couples who lacked an account.
"These gaps attest there's still a lot of opportunity to expand participation across the population in the banking system,'' Keith Ernst, Associate Director of Consumer Research and Examination Analytics at the FDIC, said during a media call about the report.
Will the number of unbanked rise if the U.S. has a recession?
Perhaps.
"During the last recession unbanked rates did indeed go up,'' Karyen Chu, chief of the Banking Research Section at the Center for Financial Research, said during the call.
Additionally, last year, homes where the head of household was out of work were nearly five times more likely to not have a bank account as compared to those where the household head was employed.
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"To the extent that income goes down ... that has generally been associated with increases in unbanked rates,’’ Chu said.
Object oriented programming refers to the programming paradigm based on the concept of objects that can also contain data in form of different fields and these fields are known as properties or attributes. It also includes code in the form of procedures, which are known as methods. The aim of object oriented programming is to implement Real world entities such as polymorphism, inheritance, hiding etc. It binds functions and data that operate over them in order to eliminate that no code can access this particular data instead of function. In order to learn about different object-oriented programming concepts, you can easily avail Assignment help in USA, where professionals are always available to help you in writing for the assignments related to oops.
Article Summary
This meticulous article explains in detail the crucial concept of object-oriented programming along with the multifaceted advantages and disadvantages pertaining to it. It further discusses the various fundamentals linked to the implementation of classes in the object-oriented programming language.
Advantages and Disadvantages of object oriented programming
The primary objective behind the development of object oriented approach is basically to eliminate that limitations of procedural programming method. It has proved as best approach for software development but it also includes some disadvantages. Some of the major advantages and disadvantages of OOP are as follows:
Advantages of object oriented programming [OOP]
- Object-oriented programming provides the feature of reusability of classes with the help of which it is easy to use all the classes again that have already been created previously.
- It allows for the parallel development of classes due to which object oriented programming is considered as a quickest way of development for completing the programs.
- It is one of the secure development approaches in which data is hidden that cannot be assessed by any external function.
Disadvantages of object oriented program`ming [OOP]
- It is possible that the relation among all the available classes become artificial that may cause difficulties in the development.
- In comparative to procedural approach, programs development with object oriented programming language are large in size.
- Due to large size of program, there is a need to execute more instructions.
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Object Oriented Programming – Encapsulation, Objects and instantiation
Program Design
The application is based on a grocery shopping cart. When shopping for groceries online a Customer chooses a Product and places an Order for some quantity of it. The order is added to a Cart. A Date is set for the delivery. More orders can be added to the cart, and they can be changed up until checking out. To get to assignments in short deadlines, you can search for Instant Assignment Help. Programming experts are always available to assist you in completing your assignments on time with high- quality.
The partial UML class diagram below shows the underlying data model you should use to achieve this scenario:
Examples for implementation of classes in object oriented programming language
Product.java
This class contains the data members to store the details of a product such as product code and description etc. Also it consists of the accessors and mutators to access those data members which are declared private. Here, the concept of Encapsulation is used.