Cashless Kids: How Tweens Can Navigate a Digital Economy

As a parent of pre-teens, I’ve recently discovered how tricky it can be for my girls to pay for things when they go out with friends. What are the options if they don’t have cash, a credit card, or even a phone? In today’s increasingly cashless society, this challenge is common for families.

The good news? There are plenty of solutions that combine easier spending with valuable lessons about money management. Here’s how you can help your tween navigate a world without cash.

Cashless Payment Options for Tweens

• Prepaid Debit Cards. Families can set kids up with prepaid debit cards through companies like Greenlight or Acorns Early, which allow parents to set spending limits and monitor transactions. A friend shared how she used Greenlight for her daughters on a recent mall trip, where she could see what they spent and where they spent it in real time. These tools also create opportunities to teach budgeting and the difference between needs versus wants.
• Gift Cards. My girls often receive store gift cards for birthdays or holidays, which I love, because it gives them independence and choice. Gift cards are a great way for kids to make spending decisions: Should they use the cards now for something fun, or save the credit for a bigger purchase later? Of course, gift cards come with risks; if lost, they’re gone. This is a perfect opportunity to talk about responsibility. Even though it’s not physical cash, a gift card works the same way, and they need to protect it just like money in their wallet.
• Student Bank Accounts. Some banks offer no-fee student accounts linked to a parent’s account. These accounts often include debit cards with parental controls, allowing kids to track balances, view transactions, set savings goals, and build financial literacy early.
• Digital Wallets. If your tween has a phone, options like Apple Pay, Google Pay, or Venmo become available. Parents can set up family sharing accounts for secure transactions with oversight, and parents can link their accounts with spending limits to maintain control. Many offer notifications allowing parents to monitor real-time spending.

Teaching Financial Responsibility

No matter which tool you choose, remind your child that these options are all forms of cash. Before they go out:

• Discuss how much they can spend.
• Set expectations for what they should or shouldn’t buy.
• Afterward, review what they purchased.

The shift to a cashless society doesn’t have to be overwhelming. With the right tools and conversations, parents can turn this challenge into an opportunity to teach lifelong financial skills. Whether it’s a prepaid card, a gift card, or a digital wallet, the goal is the same: Empower your child to make informed decisions and develop healthy money habits early.