Most investors do not pay their educational expenses or medical bills online, but they do pay credit card and utility bills electronically.
Despite continuing concerns over the safety of accounts, a majority of investors pay most of their regular bills online, a Spectrem’s Millionaire Corner study shows.
Using Social Media and Mobile Technology in Financial Decisions, a study which interviewed investors from three different wealth segments, shows that most monthly bills are paid online. Utilities, credit cards and phone and Internet service bills are paid electronically by a majority of investors.
The wealth segments studied were Mass Affluent (with a net worth between $100,000 and $1 million Not Including Primary Residence), Millionaire (with a net worth between $1 million and $5 million NIPR), and Ultra High Net Worth (with a net worth between $5 million and $25 million NIPR).
Credit card payments are the ones most often paid online. Ninety percent of Mass Affluent, 88 percent of Millionaire and 90 percent of UHNW investors pay their credit card bills online.
Utility bills are also popular choices for online payments. The range in online payment percentages are 79 percent (Millionaire) to 83 percent (UHNW).
Personal item bills such as telephone, cable or Internet service is another bill that gets paid online most of the time. Eighty-five percent of Mass Affluent investors, 81 percent of Millionaires and 82 percent of UHNW investors pay those bills online.
Most investors pay their insurance bills electronically (between 70 and 78 percent).
There are other regular bills that do not get the electronic payment treatment. Less than 50 percent of investors pay their mortgage bills electronically; likewise with tax bills, medical bills and educational expenses. In some cases, those bills are automatically deducted from checking accounts, so that the actual exercise of paying a bill is not required.
Paying for educational expenses are extremely low; just 13-14 percent of investors from the three wealth segments pay their education expenses online.
In the last year, numerous retailers have had credit card accounts hacked, raising some questions about the use of cards for buying and selling. Although less than 2 percent of investors say they only use cash now because of the hacks, between 70-75 percent say the check their retailer or bank issued credit card statements more frequently, and more than 10 percent said they stopped shopping at stores that had their credit accounts hacked.
Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.
In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.
McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.
McDill is the father of four children, and an active fan of soccer, Jimmy Buffett and all things Disney.