Are debit cards a better idea?
Not necessarily. Some companies are offering them to teens with the hype that debit cards actually teach credit skills. A specific amount of money is transferred to the card company, and the card user merely subtracts from that sum each time the card is used. It’s virtually the same thing as an ATM card. Aside from subtraction, it doesn’t teach much. Help your kids keep track of their money. They learn most money-management concepts by observing their parents’ behavior. Your attitude will strongly influence your child’s view of record keeping, balancing a checkbook, and following a plan for saving and spending. Teaching how to set aside money for that trip to the beach next weekend may help you create an adult who doesn’t run out of money before the bills are paid. Explain the risks of being overly generous. When my daughter’s 18-old-son informed her he had cosigned a loan for a friend, she nearly had a stroke. In his mind’s eye, it was a matter of trust. In hers, it was a matter of ho
