Every kid wants his own credit card. Now companies are rolling out prepaid cash cards that let you transfer money automatically from your account to their wallets. Recommended for kids ages 13 and up, the Payjr Prepaid MasterCard ( payjr.com ) wraps the card in an elaborate allowance system, transferring money as soon as parents sign off on the Web site that the chores are done. The Allow Card MasterCard ( allowcard.com ) puts teens through a series of online financial lessons, like how to create a budget. The Visa Buxx card ( visa.com ) has been around a little bit longer and can also be used as an allowance-payment system.
The advantage is that kids can use the cards to shop online and avoid losing cash. But you might want to pair the cards with an old-school savings account to encourage responsible spending. And all the cards have fees of up to $20 for setup, money transfers and other services. So, if your bank is willing, a cheaper alternative might be to get your teen a debit card to go with that savings account.
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
