Credit card vs Debit card
To start, you may be asking “what in the world is a debit card?”
Well to simply put it, a debit card is basically a plastic card(a bit more complicated than that) that you can use to make purchases and withdrawals instead of using cash. The difference between a debit and a credit card though is that a debit card is connected directly to ones bank account that will take money directly out of your account immediately. This is different than a credit card because a credit card involves a line of credit with the card issuer and consumers are allowed to have a continuing line of debt that builds up which interest can be charged.
Why parents should allow their kids to have debit cards
A lot of teenagers these days seem to be spending money like crazy, this may be because they think its cool, a bad habit or a new fad. The reason is that I believe some teens just don’t know the value of a dollar so they feel like dropping $100 on a new pair of shoes is nothing. Whatever the case, I say that it is possible to stop it. In order to do so, Parents could get their child a debit card and force their child to pay a percentage of all their spending’s. The parents could then offer the child a paycheck through performing a task or set of chores. In this situation a debit card would be most useful because of its extreme portability(so your child can buy something on the go without carrying cash) and allows you to manage your finances easier than cash.
Allows your child to easily manage their finances –> At least better than cash anyways
Teaches your child responsibility
Creates a motive to complete chores –> The annual deposit into the bank