We decided to get our oldest daughter a prepaid Debit card. It arrived in the mail yesterday preloaded with her first deposit of $14. The $14 is her monthly allowance based on her age.
After school today, we are going to set up and log into her online account. She will have her own log in for this account, and DH and I will also be able to see it from our own bank account log in.
She can use the card for purchases and ATM withdrawals. We can transfer money to and from it at anytime. We will definitely pay her allowance in this form now.
We are using USAA bank and the card was free. There are no monthly or annual fees or charges to use the card. We are excited to give her this option for handling her money. She has done a great job saving for things she wants and handling and even tracking her cash balance in the last year or so. We expect thing will go well with the prepaid card as well. She's most excited not to be fumbling with her wallet and cash when she makes a purchase!! Cute.
Anyone else give their child(ren) a prepaid card? How did it work out?
Prepaid Debit Card for Our Daughter
January 4th, 2012 at 02:16 pm
January 4th, 2012 at 02:32 pm 1325687546
This is a great idea! Is your daughter in high school now? Does your younger daughter want to participate in her allowance this way? You've given me stuff to think about.
January 4th, 2012 at 02:33 pm 1325687602
One reason I think I don't identify at all with "it's easier to spend more with the card swipe than with cash" mentality is because I was raised to deal with my cash electronically. To me, cash is cash. A check, cold hard cash, a debit, a credit purchase is all the SAME to me. I had checks at age 13 and a credit card when I got my first higher paying job (16). So from age 13 or so I have never dealt with actual cash, but learned to manage my money in a more modern manner. If my kids were old enough today I would absolutely get them a debit card until they were old enough for a credit card. I don't like debit cards at all, personally, but can see the positive for a kid learning (checks are just not so common any more, not quite as functional).
I think she will be better for it. Lord knows her generation will be swiping everything anyway. She will be better equipped to manage it with some pre-adult practice.
For reference, my dh was raised the same way - credit card at 16. We may be the only two people I know who have never carried a balance on a credit card, also.
January 4th, 2012 at 02:41 pm 1325688094
@MM, I think the more practice kids getting spending, saving and managing money in all it's forms under parental supervision the better. We let them buy whatever they want with their money...even if it wouldn't be our choice or the best use of the money. That is their decision and they learn from it. We have even had discussions after months have gone by about how they feel about a particular purchase.
January 4th, 2012 at 03:36 pm 1325691417
January 4th, 2012 at 05:31 pm 1325698309
January 5th, 2012 at 12:05 am 1325721955
January 5th, 2012 at 12:57 am 1325725021
January 5th, 2012 at 01:05 am 1325725534