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As a self-employed Gen Xer and single mom to a pair of teens, my financial savvy is pretty much on point — it has to be. As someone who came of age writing paper checks, paying bills by mail, and balancing my checkbook on Sunday nights at the kitchen table, I was a prime candidate for getting wiped out by the digital tsunami that's inundated the modern financial landscape of late.

From mobile banking and online bill pay to direct deposit and digital payment apps, the waves of cashless options seem to swell by the day leaving a steep learning curve in their wake.

I read a June 2023 survey by Visa that found that millennial and urban parents are leading the charge when it comes to utilizing digital payment apps as a method of sending money to their teenagers and keeping tabs on where the dough goes.

This left me wondering: Is it finally time to smash those piggy banks?

I talked to Ruben Salazar Genovez, global head of Visa Direct, about the survey. "Over the last decade, a steady stream of innovation has made digital payments easier and more convenient for everyone," he said. "It is important for this new generation to understand the value of money in digital form to avoid being financially vulnerable."

That includes understanding how money is pulled from a bank account when a digital payment transaction is initiated and the risks associated with overspending on a credit card.

According to the survey, digital payment apps like Venmo, PayPal, and Zelle are the second most popular form of payment, trailing behind cash, for transactions between parents and teens.

Digital payments are used to cover everything from allowances to expenses for school and extracurricular activities. The survey suggests that parents using digital payments find it easier to track how their child is spending money they give them, reduce theft, and easily send money.

Personally, I've become far more comfortable sending my 19-year-old college student money via Venmo than handing over cash. For many her age, cash seems to have lost its luster and might seem more like Monopoly money.

Still, while 34% of parents surveyed describe themselves as very financially literate, only 16% believe their teens are savvy when it comes to dollars and cents.

"Since today's teenagers are paying for things digitally, many of them are not physically spending money," said Genovez. That can make it harder to understand the value of currency and easier to spend money they don't actually have.

As digital payment apps gain steam, that means financial literacy is more important than ever. When it comes to getting teens and parents on the same page, Genovez suggested several options developed by Visa that teach the fundamentals of personal finance, including the video game Financial Football and the Practical Money Skills and Practical Business Skills websites.

Emerging technologies have given rise to new forms of fraud, and digital payment apps are no exception. While these platforms take their customers' security very seriously (with many of them using bank-level encryption to keep consumer data safe), they remain rife with risk. Credit monitoring services can help, but it's also important to talk about the risks.

"Before teenagers start to begin their own financial independence, it's important for parents to take the time to teach their kids about financial scams to help protect against them," says Genovez. He says it's important to discuss financial fraud (from identity theft and phishing to imposter scams) to keep teens talking openly about what they are experiencing online, especially across social media.

"Teenagers today have grown up in a world where the internet was always there, and social media has always been accessible," says Genovez, who reminds parents and teens alike that hand-in-hand with convenience comes risk.

When my daughter's debit card credentials were "stolen" last spring, it caused some of these issues to snap into sharp focus — but not for long. The instantaneous availability of funds via Venmo removed most, if not all, of the inconvenience that should have been associated with such a financial breach.