Whether they’re buying snacks or movie tickets, fewer people are using cash these days. In a survey by Forbes magazine last year, only 22 percent of people said they usually pay with cash. Debit cards and digital payment options like Google Pay and Apple Pay seem to get more popular each day—including with kids.
Many parents like the ease of using debit cards and payment apps. They can instantly transfer money into their kids’ accounts, which can be a big help in an emergency. Plus, some people point out that a lot of businesses no longer accept cash.
“These days, the reality is that most of our transactions are going to be done digitally,” says John Lanza, an expert on helping kids manage their money. “So it’s important to build good habits now that will help you be smart about money in the future.”
But many people argue that paying with debit cards or apps makes it much easier to overspend. The Forbes survey found that people are likely to spend more money when they’re using cashless payment methods.