Parents Find Greater Control, Safety in Debit Cards

By Loeffler, William | Tribune-Review/Pittsburgh Tribune-Review, March 11, 2007 | Go to article overview

Parents Find Greater Control, Safety in Debit Cards


Loeffler, William, Tribune-Review/Pittsburgh Tribune-Review


Time was, allowances were distributed to kids in dimes and dollars.

But like so much of everything else, allowances have gone plastic.

On the heels of gift cards, "allowance cards" are making their way into the consumer mainstream.

Instead of giving their kids a cash allowance, parents can now give them pre-paid debit cards to tide them over on that high school band trip or their first semester of college. A swipe of the card can pay for textbooks, burgers or clothes.

The money is drawn from a fund set up in advance by parents, who maintain control of the account and can close or replenish it.

These "teen debit cards" have been around at least since August 2000, when Visa USA debuted the Visa Buxx card for ages 13-17. But more banks and financial service corporations have gotten into the act, hoping to tap into the youth market.

"From what I've seen, it seems pretty convenient and safe to be able to carry a card instead of a lot of cash with you when you're a teenager who's away from home," says Jamie Boerio, 18, a senior at Latrobe High School.

Allow Card of America Inc., a privately held financial services organization in Mesa, Ariz., debuted the Allow Card in February 2006. There is a $19.95 fee for each card, which is issued by MasterCard, as well as a $3.50 monthly fee. However, users pay no overdraft or late fees or interest. The minimum pre-load amount for each card is $15. The maximum amount is $2,500.

"In the teen market, it's a great way to teach teens how to be responsible with a type of credit card before they get into that world, before they start receiving credit card applications," says CEO Marla Beans.

But some critics say this plastic spending money is old wine in a new bottle.

"Nine times out of 10, parents don't stick to the limits they impose," says Lynnette Khalfani, a New York-based personal finance expert and the author of New York Times best-sellers "Zero Debt: The Ultimate Guide to Financial Freedom" (Advantage World Press, 2004) and "Investing Success" (Advantage World Press, 2004).

"They replenish the cards prematurely," she says. "The cards aren't effective at teaching fiscal responsibility and restraint -- not when the kids know (they) can tap into the Bank of Mom and Dad."

The cards can provide a safer alternative to cash or credit cards. Parents also can track their child's purchases online. Card issuers tout the card's pay-as-you-go feature as a way to teach kids financial responsibility. As a further incentive, parents and kids who log on to check their account also can learn money-management tips or create a budget.

National City was one of the pilot banks for the Visa Buxx card. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Parents Find Greater Control, Safety in Debit Cards
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.