Kids earning an allowance is no doubt a fantastic way for them to learn about hard work and the value of a dollar.
However, some experts are saying that instead of giving your kids a cash allowance, you probably should give them a debit card instead.
According to TinyBeans, a debit card "teaches your kids modern money management skills, helps them learn to budget, and creates a stronger connection between their chores and their money."
The four biggest reasons you should switch your kids to a debit card instead of a cash allowance include:
1 - It teaches kids the ACTUAL money management skills they need.
Money today is mostly just numbers on a screen, not cash. So it makes more sense to prepare your kids for the future by having them use money now the way they'll use it as adults.
2 - It helps teach kids to budget.
There are actually quite a few good debit cards for kids out there that help teach them budgeting and saving. Plus when kids are in better control of their money, they naturally start making smarter spending decisions.
3 - It helps them make a stronger connection between work and money.
Most kids debit cards allow parents to reward kids for chores. That helps kids make a connection between work and earning . . . and makes them appreciate the value of a dollar.
4 - It gets rid of the possibility of a kid spending thousands of your dollars in an online game.
When a kid has their own debit card tied to micropurchases in a game, suddenly they're less inclined to buy a million Smurf berries.
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