Hey there! It's Talk About Money Tuesday, my favorite day of the week!🤑

It's officially spring and I can't believe how many retailers link sales to the arrival of the season. Apparently, Gen Z loves in-person shopping, so I expect to see plenty of young people out hunting for deals — debit card in hand.

According to a recent LendingTree survey, 40% of Gen Zers prefer using a physical debit card when shopping in person.

Debit cards are convenient and reduce the risk of going into debt. But debit card newbies can struggle to track spending and may face overdraft fees that eat into their money, especially early on. For youth growing up in a tap-to-pay world, learning how to use a debit card wisely is a foundational financial literacy skill.

Let's get into ways you can help your kids and teens avoid debit card mistakes that can get them into financial trouble.

Money Stat

30%

The latest edition of a Federal Reserve study shows that credit cards were the most popular form of payment in 2024. But debit cards came in second, accounting for 30% of all payments and surpassing cash in many everyday transactions.

This means more people, including youth, are more likely to tap or swipe than hand over cash. And that often makes spending feel less "real."

Still, young people show little sign of trading plastic for cash. The study reveals that cash has remained the third-most-used form of payment for five years running.

Get in the Zone

​

​

Money skill: Tracking debit card spending

Why it matters: Before kids ever apply for a credit card, most will already have used a debit card. The way young people use debit cards plays a role in shaping their long-term relationship with money. If they don't build the habit of tracking their debit card spending early, it's easy for small purchases to spiral into bigger financial problems.

Try this: For young people, simply having a debit card isn't enough. It's key for them to understand how their money actually moves.

➡️ Teach them how timing affects spending. Explain that debit card purchases don't always get processed right away. Help your child understand that pending transactions still count against what they can safely spend.

➡️ Show them how to check their real balance. Walk through their banking app with them and point out the difference between "current balance" and "available balance." Urge them to make it a habit of check both balances before spending, not after.

➡️ Encourage a "just-in-case" buffer. Teach your child to leave a small amount of money in their account that they don't touch. This cushion can help them avoid overdraft fees from timing delays or small spending mistakes.

Tracking debt card spending is just one of many financial literacy skills that help teens take control of their money. Let's work together to equip young people with what they need to know about money to prepare for adulthood.

​Book a discovery call with me today!

Money Talks

​

Credit cards and debit cards look almost identical, but some young people don't realize they're not the same. Here's a way to start a conversation with your kids or teens about a key difference between the two:

"What do you think is the main difference between a credit card and a debit card?"

Start by really listening to your child's answer to this question. This shows them their opinion matters and also encourages open discussion. Then explain that a debit card spends money that's already in their bank account. A credit card, on the other hand, lets them borrow money from the bank that they'll have to pay back with interest if they don't pay it all back in time.

When your teen understands the difference between debit cards and credit cards, it puts them on the path to avoiding unnecessary debt.

Loose Change

​

🎁 Debit card users have long missed out on the perks and rewards that come with credit cards. Not anymore.​

💰 Lottery tickets in Tennessee are a cash-only purchase. Officials say sales would increase if consumers could buy tickets with debit cards.

⛽ That temporary hold that gas stations put on your debit card when you buy gas — here's the reason for that.​

Thanks for reading! If you know someone who cares about youth financial literacy, share this newsletter with them. And if this newsletter was forwarded to you, please subscribe ​here​.

'Til next time,

Audrey
​Founder &
Certified Financial Education Instructor​
The FinLit Zone

600 1st Ave, Ste 330 PMB 92768, Seattle, WA 98104-2246
​Unsubscribe · Preferences​

View our website