Debit Card Dangers

My 15 year old just got her first debit card before Christmas. Sounds like a great way to monitor and control spending and it is. The bank we use allows for a maximum cash out from an ATM or Point of Sale purchases daily which I set. I can also monitor all transactions through the internet. I control the direct deposit of 10 percent of her earnings being transfered from checking deposits into a savings account, a long term savings account. Which means, she will see that money in about 45 years. The savings only works one way and that is deposits in never out until they are transfered into a higher yielding investment.

I have used an ATM card for over 20 years and pretty much take them for granted. However, take a look at the attached video. There is caution that must be taken when putting even ATM plastic into the hands of a teenager. But it is still a great way to prepare a teenage to become a responsible adult. Just stay on top of it.

You can read the accompanying article to this msnbc.com broadcast by clicking HERE

A good question and some GREAT answers

This article just came out in yesterday's Kiplinger.com

I have a 15 year old who started her first job last year and of course she has been saving a minimum of ten percent of her income for long term, one day to be retirement money. Any other purchases she might be saving for is not commingled with here long term money. We sil be transferring that savings into a Roth IRA before tax day, April 15th which this year lands on a Tuesday. Check out Kim's answer by clicking here