Bohemia Bunny

Money Management For Kids

June 10th, 2007 by lynnylchan under Paid Post

*Paid Post*

I find it somewhat surprising and very regrettable that people my age, barely out of college, can be declared bankrupt due to their credit card debt. Having the freedom to spend but not the understanding that you shouldn’t spend more than you have is a deadly combination indeed. It’s not that credit cards are evil; it’s just that a huge level of financial illiteracy exists among the young.

Given this milieu, the idea of giving teenagers credit cards just sounds like financial suicide. However, there are other options such as prepaid cards and debit cards, and PayJr’s Teen Card is one of them. Besides the obvious benefit of added security since overspending is impossible, parents can also use it to transfer money electronically to their child’s account, which makes it useful for emergencies. As an added feature, there’s a chore management system that pays the child for doing household chores or achieving other goals set by parents, such as good exam results.

Parents can track the card activity to see where money is being spent, and they have the option of suspending the card if the situation arises. Cardholders are protected from fraud and electronic theft with a zero liability program, and the money on the card is insured in case of loss. Hence the teenager has some latitude in spending their money while learning to be financially responsible, but parents retain control so that the child doesn’t end up in a financial mess.