HOW TO TEACH A TEEN GOOD DEBIT CARD HABITS
When I earned babysitting money as a teenager, it typically went in my piggy bank or my wallet. Now teenagers have debit cards, which they use for everything from buying a smoothie to making online purchases.
But just as you don’t hand over a phone without a set of ground rules, parents also need to set guidelines around debit cards. Unfortunately, I didn’t realise this until after my 15-year-old had made multiple Uber Eats purchases!
Take your teenager with you to the bank to apply for a debit card so they know the procedure and also so you can ensure the card is linked and visible on your internet banking. Discuss what the card can be used for, who will supply the funds to the card, and your expectations for its use. Devise together what privileges might be lost if they misuse the card.
If your child has a part-time job, their pay might go into the transaction account but you could discuss setting up regular transfers into a savings account. Likewise, talk to them about the importance of keeping their password secret and the fees that can be incurred if they make cash withdrawals from ATMS at banks other than their own.
While teens are often shy about dealing with discomfort, accompany them back to the store if something they purchase is faulty or help them file a complaint online. Finally, help them to see the value (and cost) of items they are buying. When my daughter started regularly ordering bacon and egg rolls to be delivered, I took her to the supermarket and we bought bacon, eggs and rolls so she could compare the cost of making her own.
Part of the privilege of having your own money, is appreciating the value of it.