How to Explain Cashless to Kids?

How to Explain Cashless to Kids?

Parents have used paper money to explain financial concepts to kids for generations. But how do you explain money to your child when you spend it with a card and never see the physical paper itself? 

What is cashless?

Cashless is simply a way to spend your funds other than paper money. Using a debit or credit card, paying a bill online, or sending money through an app are all cashless ways to use your funds.

The importance of explaining cashless to kids

From swiping cards at the store to online shopping, our society is moving toward digital payments more every day. Kids are more familiar with apps and technology. Cash has become less popular, and handling money electronically has become safer and more convenient than ever. Cashless ways to pay are a likely reality your child will face every day.

Pros and cons of cashless for kids

As we move toward a more cashless society, it can be tricky to teach kids how money works and how to build good financial habits. But what are the pros and cons of cashless for kids? 


Pros of cashless:

  • Cashless options like debit cards for kids can offer a safer option than walking around with cash
  • Teaching kids how to manage their money cashless can better prepare them for handling their finances in the future. 
  • Cashless options come with more security like PINs and fraud protection. 
  • Kids cards can offer parental controls and activity monitoring.


Cons of cashless:

  • Teaching kids about money without using physical cash can be tricky for parents.
  • Cashless payments can give kids the false idea that cards are “magic money.”
  • Different cashless options can come with security risks and drawbacks.

How to explain cashless to kids

If you’re struggling to explain how cashless works to your kids, try getting them involved in the process. Help them understand how they can earn money and put it into an account—like an electronic wallet—that keeps it safe. Show them how a debit card lets them spend the money at the store and how a PIN works. 


When you talk to your child about money and how to pay for things, many parents in our community have found success by making it fun and relatable. Relating money to topics your child finds interesting can help. Make up scenarios where their favorite characters need to spend money without using cash, or ask them about real-life situations they might face with money, like buying a special toy.


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Written by Kristin Yarbrough Published Jul 3, 2022 ● 2 min. read