The Disadvantage Of Using Your Debit Card
The main drawback of using a debit card is that it mimics a credit card in 2 ways.
- You’re not really aware of how much money you are debiting and how often you are using your debit card.
If your goal is to control spending, debit is not the way to go.
A great way to stay on plan when shopping is to use the envelope method. You place the amount of money you have allocated (e.g. for groceries) in an envelope. This method can and should be used for entertainment cost or pocket money as well. Leave the debit card in your wallet. You shop from the envelope and when the money is gone, or nearly gone, you will know for sure since the envelope will be lighter. That sends a very clear message about your spending, and how much you have left to spend. That’s when you’ll have the ah-ha moment.
- Using debit also increases bank fees, and if you do not have a service plan that allows for unlimited transactions, that cost can increase dramatically.
Debit cards are great, but if at the end of the month you cannot account for some of your cash, check your account and see how many times you have used your debit card in that month.
A tip on managing your money successfully.