Debit cards look visually identical with credit cards and that’s the only similarity we have. With credit cards, people can charge on them up to a credit limit, which is defined based on specific plans. Debit cards should be usable like credit cards and they can be used to pay services and goods at specific time. We can also use debit cards the same way, but it is limited to the amount of money that we already have in specific accounts. While credit cards are about lending money, debit cards are for using money that we actually own. Debit cards are useful for parents who want to provide specific financial allowance for their children in school. Depending on how much money we have in specific account, it is the amount of money that we can use, when charging a debit card. However, some banks provide hybrid cards, which are debit cards that turn into credit cards when the money in the account has been expended. Debit cards also work like checking accounts and the card is rejected, when there’s no more balance in the account.
People can’t use a debit card that’s not backed with enough money and it will bounce like a credit card that has reached its limit. If there’s cash available, debit cards should work like normal ATM cards and they can help us access cash. It’s as convenient as inserting the debit card at the local ATM machine. In fact, many banks provide ATM cards that also work as debit cards, usable in many merchants and stores. For parents, this can provide a huge amount of convenience. With Internet banking, it is possible for them to transfer money easily from their laptops, tablets or smartphones to their children’s accounts. This can be helpful, because occasionally; students are desperate for money during weekend for specific educational purposes. It means that parents don’t need to wait until Monday to transfer the money to their children’s accounts. Students know that they will get the money for specific purposes. This should also be a great to teach students about proper money management. They won’t get problems by overcharging credit cards and they need to learn to properly pace their spending. Parents often have concerns about extra spending, which can be inappropriately used.
For this purpose, parents can obtain the monthly statement and check all the withdrawals. If their children spent an exorbitant amount of money at a beer emporium, then a conversation is needed. If children still can’t manage money properly, the discussions on money management are in order. As a disciplinary measure, parents can reduce the amount of the allowance, allowing children to get money only slightly larger needed for basic expenses. In order to further ward off spending sprees, parents should also be able to limit the daily withdrawals to specific amounts. This will prevent boys to binge on alcoholic beverages and girls to splurge on shopping. Properly managed debit cards will become a great educational tool for children.