Nathan got his first checking account complete with checks and debit card.  It’s time for him to move on to the next level of money management.  At 16, he needs experience depositing, cashing, and writing checks.  He also needs to learn to use “plastic” money in the form of a debit card.

I like debit cards.  They’re convenient, practical, and as close to using cash as you can get.  That’s because the money is pulled directly from his checking account so the funds need to be there.  Okay, so banks have figured out how to eek more money out of us by charging overdraft fees.  The key is that Nathan needs to be vigilant about keeping track of his income and expenses in his registry.

Unlike females and their purses, carrying around a checkbook is not something he wants to do so he’s going to need to come up with a plan.  He used his card yesterday and, good boy, recorded the expense.

If he proves he is responsible with his checking account, and there’s nothing that would lead me to believe he won’t be, the next stage is a charge card.  Unlike credit cards, charge cards need to be  paid off each month.  I love the built-in consequence of not being able to use the card if the balance is not paid.

Eventually he’ll move to a credit card.  But right now he’s enjoying the feeling of being all “grown up”.