Piggy banks do not help our kids understand how to spend money they can’t see or touch. Debit card spending occurs without using any cash. Your kids see you using a debit card at the store, but do they know that you are spending money from your bank account?
There is no visible money when you use a debit card. Even though debit cards don’t look or feel like cash a debit card works just like cash at a store. Piggy banks detest debit cards. Debit cards are the new cash.
If you are using debit cards today, what advanced form of cashless spending will your kids be using as adults. Sure, they will still use some cash, but if they grow up mostly using cash how will they be prepared to manage a debit card?
Debit cards are the new cash with a few twists. Spending with a debit card is the similar to taking money from a piggy bank. Once the money is gone there is less money left. A debit card does this in cyberspace and instantly changes the bottom line in one’s account.
When my kids were young we discovered our own debit card spending. Our kids had no-cash allowance accounts for tracking their inflows and outflows. They saw their money as a number and knew their balance to the penny. When we went shopping I paid for all our purchases together; they subtracted their total purchases from their accounts when we got home.
What surprised me is that my children didn’t care if they had cash or not when we went shopping. All they wanted was to use their money to get what they wanted. What they learned from their experience was that every decision to spend made their account balance smaller.
The No-Cash Allowance Tip #5
Give your kids experience with debit card spending by paying for their
purchases and having them subtract from their account.
Learning to manage money that can’t be seen or touched is an essential survival skill for our kids. As parents we can help our children prepare for their adult future by helping them understand what we are doing when we use a debit card.Follow me on social media: