Motley Fool Money The Case for Giving Your Kid Cash
Dec 22, 2020
In a world dominated by digital payments, cash still holds a vital role in teaching kids about money. Best-selling author Beth Kobliner reveals how handing children cash can lead to lasting lessons in financial responsibility. She discusses the advantages of cash transactions in helping kids grasp spending limits and cultivate mindful habits. This engaging conversation highlights the importance of tangible experiences in financial education, making a strong case for keeping cash in kids' wallets.
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Plastic Spending
- Studies show that people spend twice as much with plastic than cash.
- Plastic feels like "fake money," leading to increased spending.
Cash for Kids
- Give children cash to teach them about money.
- This helps them understand its finite nature, unlike digital payments.
Cash Register Lesson
- Imagine giving a child $100 cash; they'll learn budgeting at the register.
- With a card, they might overspend without realizing the immediate impact.
