RB, when you use a CC you know that the money in the bank is used to pay off the CC. The point of the CC is that the stores would rather take a CC than a check. You use the checks to pay of the CC and you gain points and build credit as you use the CC. You also train yourself how to use a CC and not to go over your credit limit, as well as sitting down at the end of the month to pay your bills on time and not pay interest. It is a good training method. Don’t spend what you don’t have, learn to live within the budget by having a visual record on the envelope, and pay your bills on time to build good credit and gain rewards.
Of course the main idea is not to spend what you don’t have and that is the best foundation to build on for your entire life. The problem with the debit card is this faulty error system that the bank holds over your head. And if you are in a sticky situation and you know you sent out the bill for the CC you can use it again. If your check didn’t clear yet in the bank your debit card is useless. You also don’t gain rewards. In addition, if your spouse also uses the debit card, you are in trouble if s/he makes a purchase you didn’t know about and you are standing at the check out and your card is denied on the spot. People have a tendency to just watch the receipt when it comes out and use that as their register. So lets say the receipt says they have $200. By the time they get to the next store, their spouse might have filled up the car with gas for $60 and now they don’t have enough left on the card to pick up the groceries they just ordered. If they use the checkbook itself it is not a problem, but with the debit card it is. It is not like a checkbook in that sense it is more like cash.
But RB, you are right. If someone is NOT capable or cannot be trusted to stay within the concept of the budget, they should be limited by the debit card.