Today’s parents often wonder if the decision to give their kids a debit card is a wise one or a foolish one. Can having a debit card teach your kids to handle money responsibly or will it cause them to spend their money too easily? Teaching your kids to be financially responsible as they get older is so important and as a parent it is your duty to educate them, not only through words, but also through your own example.
There should always be a groundwork when giving your kids a debit card. they need to understand hoe the card works, fees that may be associated with it and where the money comes from. It is important to let them know that the use will be monitored and that there are expectations that surround the trust that you are ensuring them with by giving them a debit card.
Set a Limit
Debit card limits are important for everyone. Having a set dollar amount that can be spent daily/monthly is important not only to protect from fraudulent purchases and withdraws, but to also keep spending in check. They need to make wise purchases and learn how to budget their money. As parents it’s important to help them with these decisions and to make budgets.
Be Open to Conversation
It’s important to have an open line of communication with your child regarding their debit card use. This communication pathway should go both ways so that you and your kid can openly discuss any concerns about spending habits and limitations. For example, if kids are spending much more quickly than they should be it’s important to look together at where the money went – what was it spent on? How could it have been spent more wisely? Conversely, if they are not spending the limit let them know how great they are doing and that you are proud of them.