You don’t need to carry bills and coins to have money in your pocket. Some kids keep their money on debit cards. These plastic cards are linked to a bank account. They allow people to access their money to buy things, using a password called a personal identification number, or PIN.
Many parents think debit cards are convenient. They can instantly send money to their kids’ accounts—even if they don’t have cash. Also, if kids lose their debit card, their money is safe—as long as no one knows their password. But lost cash is often gone forever.
However, other people argue that paying with a card instead of actual money can lead kids to make poor decisions.
“You might be tempted to buy things that you do not really need,” warns Walter Andal, the author of Finance 101 for Kids.