- My parents gave me a checkbook and a ledger to track my spending when I was younger.
- I wanted to do the same with my son, but since now everything is digital, I gave him a debit card.
To teach me about money, when I was 10 years old, my parents gave me a checkbook from their credit union and taught me how to track my spending in a handwritten ledger.
Today, commerce is digital, and understanding how to use tech to budget, save, and invest is paramount for kids and parents alike. So I decided to get my 10-year-old a debit card to teach him how to manage money on a smartphone app. I figured it's never too early to learn.
Why I decided to take my tween cashless
My son's experiences with money had been relatively straightforward: petty cash in birthday cards or from the tooth fairy and whatever went into a piggy bank. To buy something, he'd swap his cash for a swipe of my card. His dad recently bought him a smartphone, and he's eager to learn more about saving, so the timing felt right.
I didn't learn about money this way, so my first instinct when considering the switch for my son was pure confusion: How am I supposed to teach him how to keep track of invisible dollars in an online account when I barely use the banking apps on my phone?
Experts emphasize the necessity of kids learning to manage money digitally but say the ins and outs are tricky without parental guidance.
"With only about 10% of the money in the world being actual paper and coins, it can be difficult for anyone (especially kids) to track financial transactions," Gregg Murset, the CEO and a cocreator of the BusyKid app, said.
Kelly Lannan, the senior vice president for emerging customers at Fidelity Investments, agreed.
"Kids typically model their parents' behavior, so many times it begins with the parents and how they model good money-management behaviors as well as a positive relationship with money," Lannan said.
A recent Fidelity survey indicated that mothers were the top financial role models for teens and young adults.
I initially felt like a less-than-capable role model, but the more I learned during this process, the more confident I became.
Choosing the right card
Picking a card was more involved than I had anticipated. The options available are overwhelming, each with a laundry list of features and perks to research. To cut through the noise, I texted my aunt and uncle for advice — they're parenting three kids ages 9 to 18 and were quick to suggest their favorite card.
I briefly considered debt-card options connected to my accounts, but age restrictions and the fact that my credit union didn't have the most user-friendly app led me to look for a debit card with its own platform. I could have opened a checking account with another bank, but it was most efficient for me to pay a small fee for the card we ultimately chose.
What mattered most to me was having access to parental controls where I could set spending limits and view or limit transactions. I also wanted an easy way to transfer money to my son's account. Outlining my priorities when looking for the right debit card made a big difference.
Looking forward
It's been about 3 months since I opened my son's account and handed him the digital reins. Tracking his money in an app is second nature and more straightforward for him than I could have imagined. He's been responsible so far, always asking before making a purchase. I've enjoyed being able to transfer funds directly from my account to his for chores, and he's learning more about how money works "IRL," as he says.
"While these new advancements may simplify our money, it's critical for children who may have grown up playing video games, watching TikTok videos, or receiving online education to understand the tangibility of money and the impacts of earning and spending money in the real world (rather than the virtual)," Lannan said.
So far, this experience has highlighted that need for me and my son.
I want him to learn, but I'll guide the process for now. Like with most things in childhood, this stage is fleeting, and he will be managing his own money without my help in no time. Until then, I'll keep my app notifications on and help keep him on track.