Several years ago when Joshua was in his mid-teens I arranged with our bank for him to get a debit card. This has been a good experience for us, and it has helped Joshua manage his money.
Debit cards work very much like credit cards, with one great advantage: Instead of extending credit, a debit card drafts money straight out of your bank account as soon as you use it. We have found that debit cards are accepted most places that traditional credit cards can be used. While there are some advantages to credit cards, on balance, our family likes the debit card approach best.
Before I leave this, let me warn you that some experts voice concern about debit cards. According to a recent report on Fox News Channel, some banks are not fully disclosing the risks associated with debit cards. Consumers may have a potentially greater liability with debit cards than they do with credit cards. If someone fraudulently uses your debit card, present laws do not give consumers as much protection for speedy recovery as with credit cards. Many banks voluntarily make good on debit card losses, however it is the consumer's responsibility to fully understand his bank's debit card policy in full detail.
Also, remember, debit cards have some of the inherent weaknesses that credit cards have. For one thing, anytime you buy anything without using cash -- the pain is less. Whether you use a credit card, a debit card, or a check -- somehow it just doesn't feel as bad as pulling out the old billfold and cracking out some greenbacks. Studies show that when people use plastic they spend more money. Of course, merchants and the credit card industry like this -- but as for the consumer...
Remember the admonition: "Train up a child in the way he should go." This applies to things temporal as well as those that we perceive to be eternal. One of the best ways to bless a young person is to prepare her for a peaceful, bondage-free adulthood. Think of how much sweeter (and more spiritually productive) life would be if you had no credit card bills.
Steve Diggs presents the No Debt No Sweat! Christian Money Management Seminar at churches and other venues nationwide. Visit Steve on the Web at www.stevediggs.com or call 615-834-3063. The author of several books, today Steve serves as a minister for the Antioch Church of Christ in Nashville. For 25 years he was President of the Franklin Group, Inc. Steve and Bonnie have four children whom they have home schooled. The family lives in Brentwood, Tennessee.
A complete financial compendium, 19 chapters
• What you can do today to get out of debt and kill the Debt Monster
• A,B,C's of handling your money God's way
• How to save, invest, and retire wisely
• How mutual funds work
• How to stop fighting over money
• What to teach your kids about money
• Learn how home & car buying, college financing and insurance work.
• How to develop a budget that works-FOREVER!
• Features simple charts, graphs, and easy-to-use forms.
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