Should our kids use a debit card vs. cash? Finance and Travel Expert, Barry Choi (MoneyWeHave.com), talks about this topic and the following:
"One basic thing...it's like an ice cream truck comes around every single day...it's like $4 a cone, but we can buy a giant bucket for $8. So, it's like, 'listen, you can get two ice cream cones from the truck, or you can have a bucket that will last you a month.'"
"...depending on the age of your kids, cash is still king...it's very important for kids to understand [that] this is the money you currently have [and that] if you start spending it, you're going to start losing it...
"...studies have shown that when you're paying strictly with credit or debit, you typically spend more. But if you're using cash, you'll physically see money disappearing from your wallet, purse,...
"So, despite the fact that we're going towards a cashless society or contactless society, I still think it makes a lot of sense for kids to use cash. So, as a parent, maybe you give your kids a cash allowance, instead of debit. That said, I would say once your kids are in a double digit, just like 10, 11, you want to start introducing them to their own debit card...[and] hopefully before you get to that point, you've taught them valuable lessons about money, so they don't feel inclined to just start withdrawing all their funds from the bank account."
For more information about Barry Choi, visit his website MoneyWeHave.com.
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