ORLANDO, Fla. (Ivanhoe Newswire) — We are increasingly becoming a cashless society, and it’s changing the way kids spend and save money. Debit cards are popular among teens, but do you know how to help your child when it comes to handling a card?
Gone are the days of cash. Kids today are all about plastic!
Debit cards are convenient but make sure you’re setting your teen up for success. Choose an account with little or no fees and online monitoring. Link the card to your child’s savings account to help them get in the habit of setting money aside. Show your teen how to track the transaction with a smartphone or tablet. Teach kids to hang onto receipts until the transaction goes through. Tell your child not to share account information. And suggest that they take 60 seconds every day to check their balance. In one study of college students, 12% said they never checked their account balances because they were too nervous! You can also request text alerts if the account is running low. Most importantly, take time to answer any questions your teen has about their new spending tool.
Prepaid debit cards are another option for teens but some experts don’t recommend them because you generally can’t link the cards to your savings account and earn interest. Also, prepaid cards often have hidden fees or get lost.
Contributors to this news report include: Julie Marks, Producer; Roque Correa, Videographer and Editor; Gabriella Battistiol, News Assistant.