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PREPAID DEBIT CARD FOR YOUR TEEN

My problem with my kids was there money management. Every time the date for allowance come, i have to get to the same conversation about money management. I did a research and i found great tool, prepaid Visa card by Activacard.com. It gives me and kids what we all need. Teach your child how to pay with plastic,your teen learns how to track spending and budget funds available on the card. You can set alerts, every time your child spend money, you get text massage on your phone, so you know how much they spend, where they spend and when. In case of emergency you can fund the card right away by using your phone and you can turn card On or Of anytime. I think it's a great tool. What do you think?

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vova

Asked by vova at 10:43 AM on Nov. 21, 2008 in Money & Work

Level 1 (0 Credits)
Answers (14)
  • hmm, something to think about... I've established one for my dd b/c she's away @ college. My initial reaction when I first read the first line on your post was No Way... but I do see your point it does teach them responsibilities & allows them to do the balance &check etc. This generation tends to have a sense of entitlement & this is why I first thought I wouldn't entertain the idea but if they got the concept perhaps they'd see how money doesn't grow on trees @ a young age and treat $ with respect. Furthermore, we will have raised a society that will learn to value the almighty dollar. Good point!!
    Bellafleurs

    Answer by Bellafleurs at 10:54 AM on Nov. 21, 2008

  • If they are not paying the bill with their hard earned money. I don't think it will help them understand money management. They will just know about endless amount of money is at their fingertips.  But that's just my opinion right.

    louise2

    Answer by louise2 at 10:55 AM on Nov. 21, 2008

  • I agree with you Louise2 so I believe it would have to be an allowance earned & I wouldn't replenish the account if the money is spent before it's time. They would be out of luck. How else would they learn? It would defeat the purpose for me.
    Bellafleurs

    Answer by Bellafleurs at 11:03 AM on Nov. 21, 2008

  • i think if instead of giving them their allowance in cash putting it on a card and letting them track and budget is a good idea. but i would say if they spend all of what is on the card b4 next time they recieve allowance i would not put more on unless they did extra chores or somthing to earn the extra cash.
    sweetestkitten

    Answer by sweetestkitten at 11:04 AM on Nov. 21, 2008

  • well, i should add to my story. every time they use the card, it's a charge of 0.99c. it actually stops them using the card for no reason, for now....
    vova

    Answer by vova at 11:11 AM on Nov. 21, 2008

  • It sounds good. I like the idea of teaching kids to manage their money. Personally my mom just gave me a savings account and when it was gone it was gone. I couldn't overspend and I didn't have access to my savings account without my mom there. Thankfully my kids are too young to get into that yet. I'm waiting for the whole allowence thing til my oldest stepson is 10.
    HeatherTurner

    Answer by HeatherTurner at 11:23 AM on Nov. 21, 2008

  • the only issue I see with the cards like that is that purchases with a card do not post to the card balance immediately, sometimes they are placed on hold (subtracted from the balance for a period of time but then released if the merchant hasn't submitted for payment) if it's released back to the card and your child has not been keeping track of what they are spending, they will overdraw and cause lots of fees that you will be responsible for.

    In my personal experience from working for a bank, stick with cash... if they run out they know it and you don't rack up fees.
    flutterfae

    Answer by flutterfae at 11:25 AM on Nov. 21, 2008

  • There are possatives and negatives... Pos- that you know where they are spending there money. Neg- is they will feel like you are invadeing... Kids need to be trusted that they are makeing good desisions. Even if you trust them they will feel you are always watching and waiting for them to screw up.

    Pos - They can use it anywhere that takes Visa. Neg- What if the place only takes cash? Or if they and a friend are going halfs on something and all they have is a card...

    SabrinaMBowen

    Answer by SabrinaMBowen at 11:54 AM on Nov. 21, 2008

  • Pos- They learn to manage money Neg- they have to pay to spend money? Why? I spend money and get 1% cash back... It's not much but why pay to spend it?? Adults don't have to. Why should teens??

    Pos- You can control how much they spend by turning off the card neg- It could ruin relationships... Trust issues are a huge potential with this!

    I say, stick with Cash, or at least something like PayPal cards where you can still track the spending but they won't feel like they are always being watched. And there are no fees. AND you would still be able to decide how much money they can use in a day...
    SabrinaMBowen

    Answer by SabrinaMBowen at 11:55 AM on Nov. 21, 2008

  • Well, with prepaid cards, Im pretty sure that the funds come out immediately. Or its deducted immediately to preven that from happening. The only thing about prepaid, is that they can be expensive. Everytime I used to refill mine, it would cost anywhere from $5-$15, and then I was charged $0.99 everytime I used it. It sucked.
    Auntiemom410

    Answer by Auntiemom410 at 11:57 AM on Nov. 21, 2008

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