Studies confirm that people spend less when they use cash. Why? “The pain of payment” is what Avni Shah, a professor at U of T Scarborough, calls it. People feel more “pain” when they spend with tangible bills, and less when they spend with cashless methods like cards and electronic payment.
But, like it or not, online commerce is becoming an ever increasing part of our teens’ lives. Cash simply doesn’t fly there.
So how do we manufacture some tangible pain around cashless payments to keep our teens’ spending in check?
Notifications. Give your teen a cashless payment solution with the ability to configure alerts that can be immediately broadcast to multiple family members. That means mom and/or dad can receive a text message as soon as Junior swipes the card. That, in turn, could lead to a slightly painful parental exchange, depending on the purchase. The arrangement will certainly give Junior some pause before each swipe.
Is it invasive parental meddling? Some might think so. But I call it transparency and accountability — especially for inexperienced spenders. Should your teen really be buying anything you can’t discuss openly?
Instant parental visibility puts a little pain in your teen’s cashless transactions.
No pain, no restrain.
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