Tuesday, 10 October 2017

Remember when the only way to get money from a bank was to hand a check to a person behind a counter?

The world has changed a lot since then. Cash is almost a thing of the past. We make purchases with everything from debit cards to digital cards on smartphones, tablets, and laptops. If you're a parent of teens or young adults, you might worry the ability to buy with a click or a swipe could lead to overspending. While that may be true in some cases, new technology is also making it easier to monitor spending and saving. Additionally, the digital devices kids use daily can give them access to valuable financial teaching tools and help them learn how to manage money.

The wallet goes digital

The word "wallet" used to refer to a pocket-sized, flat, folding holder for money and plastic cards, bills, credit cards, and identification. Some people are replacing the physical version with a digital one on a smartphone, tablet, or a laptop. Without getting too technical, a digital wallet can enable you to pay for goods and services both online and in person without physically swiping a card or counting out  dollars. Your personal identification information and the account numbers of your financial services providers are stored in an app on your smartphone, eliminating the need for any physical exchange. Payment information is securely transferred directly from your phone to the merchant's payment processing system.

Many companies offer some version of a digital wallet. Here are just a few: 

  • Android Pay™ – Google's digital wallet app used to be known as Google Wallet™. However, they recently made Google Wallet their peer-to-peer money transfer app and launched Android Pay as their digital wallet app. It is one of the most widely used digital wallet apps, but is only available for Android™ systems, not iPhone®.
  • Apple Pay® –  Available on iPhone 6, iPhone 6 Plus, and most likely future iPhone models, Apple Pay is also a widely accepted digital wallet option.
  • Square Wallet™ – This app can be used with both Android and iPhones; Starbucks lets customers pay for their drinks with this system.
  • MasterPass™ and Visa Checkout® – Digital wallets from MasterCard and Visa, respectively.

New ways to monitor finances

Other technological developments make it easier to see where your kids' money is going. There are numerous digital tools to help you track spending and savings. You can even set up budgets for your kids and they can track their progress right on their device or computer.

Online and mobile banking have become standard features of most checking accounts these days. These services give account holders access to account information any time, and from any where they can connect to the Internet. You can check balances, view transactions, transfer funds, and set up alerts, such as when an account balance is getting low.

Explore Digital Banking Services offered by BBVA Compass.

The content provided is for informational purposes only. Neither BBVA Compass, nor any of its affiliates, is providing legal, tax, or investment advice. You should consult your legal, tax, or financial advisor about your personal situation. Opinions expressed are those of the author(s) and do not necessarily represent the opinions of BBVA Compass or any of its affiliates.