Make card payments make sense for kids. Learn how to teach debit vs credit, build healthy habits, and show how borrowing changes what things really cost
Kids see us using our cards to pay for everything.
This magical bit of plastic lets us get anything we want from the grocery store, petrol station, at the drive-thru, or even a sneaky little ice cream at the beach.
To them, it must seem like we have an endless supply of money. Tap and go. Swipe and spend. No questions asked.
But debit and credit cards (while super convenient) actually make it trickier for people to get a handle on their budget, because it doesn't feel like they're actually spending more money when using their cards, since they can't feel the money leaving their wallet.
So let’s talk about how to teach kids about debit and credit cards.
Know what’s yours, and know what you’re borrowing.
We need to keep it nice and simple for our mini millionaires.
When you use a debit card, you’re spending your money.
When you use a credit card, you’re borrowing the bank’s money and will need to pay it back.
This distinction helps kids avoid the “tap now, worry later” trap many adults were never taught to avoid.
With card payments rising in South Africa, building this awareness early helps them see money as something real, just like the consequences of using your debit vs your credit card.
Takeaway: If it’s debit, it’s done. If it’s credit, it’s coming back later.
Check-Before-You-Tap
Before any tap, swipe or online purchase, teach kids to pause and check the balance (even if it's just an imaginary balance).
When your child wants to buy a small item, like a R15 ice cream, ask them: "Do you have R15 available in your imaginary/savings account?" If yes, the "debit card" payment is approved.
If it’s for their “Credit Card”, ask them: "If you didn't have R15, and you borrowed it, what is the due date for paying it back, and how much extra (interest) might you owe if you miss the date?"
This simple pause forces them to connect the tap with the balance by visually showing your mini millionaire how each transaction impacts their current funds.
Takeaway: Check account balances before and after each purchase.
Grab two envelopes (or small containers) and add an amount of money, it could be R100 (either play money (from FinMaster 😉 ) or real cash). This is your mini millionaire’s debit account.
Then write R100 down on a piece of paper. This is the Credit Slip ledger, and their imaginary credit limit.
The next time you go shopping and your child wants to “buy" something, they can pay from their debit account envelope or container. Once it's empty, their “Debit Card” is declined.
If their debit envelope or container is empty, they can borrow from their R100 Credit Limit.
Here’s the important part.
This makes the abstract concept of debt something they physically have to record and pay off, illustrating the obligation of credit.
Takeaway: Let kids feel the difference between owning something and owing something.
This week’s free, downloadable Mini Millionaires resource helps kids see the real difference between using a debit card and a credit card.
Using one example item, a R500 Barbie Pop Reveal, the chart visually compares what happens when you pay with your own money (like you would from your debit card), versus when you borrow from the bank (as if you were using your credit card).
The debit side shows a straight R500 payment. The credit side shows how interest adds up over three months, turning that same R500 toy into a R600 expense over time.
You can also use it to illustrate how your mini millionaire will have R200 less each month as they pay off their “credit card”.
