Using digital wallets safely- Dos and don’ts for teenagers

The late 20th century witnessed a profound transformation with the rise of digital technology. Money began to shift from physical to digital forms. Debit and credit cards became widespread, allowing consumers to make cashless transactions. Banks introduced online banking, enabling account management and fund transfers via computers and later, smart phones.

This era also saw the emergence of electronic money (e-money/digital money), including prepaid cards and digital wallets. Digital currency refers to any means of payment that exists purely in the electronic form. Digital currencies are intangible and stored on digital platforms.

Platforms like PayPal, launched in the late 1990s, pioneered peer to peer digital payments. Over time, mobile payment systems like Apple Pay, Google Pay and India’s UPI revolutionized how people spend and receive money. Today, with just a smart phone and an internet connection, people can pay for groceries, invest and send money across borders in seconds. This has not only made life more convenient but has also raised important questions about security, accessibility, and the future of finance.

For the younger generation particularly students, digital currency is not just a trend but a necessary adaptation in a fast-paced, technology-driven world. Digital currency is increasingly becoming popular with younger generation especially students because it offers unmatched convenience. Whether paying tuition, splitting bills with roommates, or buying textbooks online, transactions are faster and simpler. Mobile payment apps, QR code scanning, and online wallets make day-to-day expenses seamless.

Apart from this, digital currency/wallets matter to students for number of other reasons as well which may include but are not limited to financial inclusion and accessibility. Many students do not have access to traditional banking, especially those from under banked communities. Digital wallets allow access to a global financial system with just a smart phone and internet connection. Understanding how digital currency works fosters financial literacy.

Students use digital wallets on a day-to-day basis in a number of ways such as paying for food, groceries, public transport, or college supplies without carrying cash. They use QR code scanning or contactless payments via phones or smart watches. Most digital wallets offer features like spending summaries, which help students manage their money more wisely and it also helps to avoid overspending by setting limits or alerts. Many digital apps like Google Pay or PayPal make it easy to share costs for meals, rent, or group activities.

Digital wallets have made students life so much easier who are living far from their parents in hostels as many institutions or parents transfer money digitally, which students can access instantly through their wallets. Digital wallet plays a vital role in student’s life by not only making them financially literate by keeping a track on their spending, saving and making a budget for themselves. It also helps students connect to broader services like budgeting apps, credit building, or savings platforms.

While using digital wallets, students need to be careful on various counts-

1. They should only rely only on trusted and secure platforms.

2. Students must keep a track on their transactions.

3. Users must activate biometric or PIN protection.

4. Students should refrain from impulsive buying that can lead to overspending and must not be only dependent on digital wallets as it can cause unease at the time of tech crash or tech not available.

5. No matter how close the friends are, students should avoid letting others use their phone or wallet app to make transactions.

Needless to say, digital currency is more than a technological novelty—it is a transformative financial tool with profound implications for the younger generation. For students, it represents accessibility, innovation, and empowerment. However, with great power comes the need for education, awareness, and responsible usage. As the world moves toward a cashless future, students who adapt early to digital currencies will not only benefit in convenience and financial inclusion but also gain valuable skills for the digital economy. Now is the time for students, educators, and policymakers to embrace this change and foster a financially literate, tech-savvy generation.