Should You Consider Allowance Credit Cards For Your Kids
The Growing Trend of Allowance Credit Cards
Ask an eighty-year-old woman what allowance credit cards are and she'll look at you like you've grown another head. Back in the good-old days kids were paid in cold-hard cash (and they had to earn what they were given). Nowadays everything is going high-tech and allowances are no different. Allowance credit cards are a perfect example of this fact.
What Are Allowance Credit Cards?
These cards are like prepaid credit cards, but you sign your kid up and add his or her allowance to it on a regular basis. The card has your child's name on it and he or she can spend the allowance on the card wherever credit cards are accepted. The question is, are they a good idea.
I Have To Be Honest
I'd love to say go and get your kids allowance credit cards without thinking twice. I mean, I was a teen not that long ago and how cool would it have been to have one? I'm sure I'd have gotten a lot more dates in high school.
The fact of the matter is that these cards really are a good idea, but for reasons other than the "cool factor".
A Lesson Learned
Putting one of these cards in the hand of a teen will teach him or her that plastic spends just like cash. You can put a purchase on the card, but the cash has to come from somewhere (and if you're smart you'll make them earn the cash that goes onto the card).
They're also convenient. If your kid loses his or her cash allowance, they're just plain out of luck. If a card gets lost or stolen you can report it as such and get issued a new one. You might have to pay a replacement fee, but it beats being out all the cash.
What To Look For
When signing your kids up for allowance credit cards look for cards with low fees. Some require an initial up-front fee and a monthly service fee. The fewer the fees, the better.
Also understand that most of these cards have age requirements. You'll be hard-pressed to find a company that will issue them to children under the age of 13. However, when your children are ready for them allowance credit cards are a great learning tool (not to mention cooler than heck).
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