A Prepaid Card Helicopter Parents Will Love
I just received a call from a publicist trying to sell me on the merits of a new prepaid card geared for teenagers. The trouble is I can find nothing I like about the product. The very name, BillMyParents, offends me. (What am I an ATM machine?) Still, I feel it's worth mentioning the card since I have a feeling it may appeal to a certain type of parent.
The sales pitch for the BillMyParents SmartSpend Card is that it allows parents to keep track of how kids spend their money in real time. Right after a purchase is made, a text message is sent to Mom or Dad's cell phone. If you don't like the $200 jeans your daughter bought, you can instantly and remotely send her a message by disabling the card. (You can also call her and demand that she returns them pronto!) The ability to spy on your child's every financial move costs $3.95 a month.
Wondering why I wouldn't like this card? I fail to see how watching over my child's every transaction teaches her to manage her own money and make smart purchasing decisions. Imagine if I tell my daughter I'm giving her a monthly allowance for all of her entertainment and clothing needs. As far as I'm concerned, it's up to her to use the funds wisely. If she blows through it in just two weeks, she needs to learn that there's no more cash coming her way. If I disable the card and simply cut her off because I can see she spending too quickly, then there's no lesson for her to learn.
I'll concede that an argument could be made that it would be nice to know if my teenager is buying something illegal, such as vodka or beer at a liquor store. Or if she's shopping for items -- I'm thinking lingerie -- that could clue me into an inappropriate relationship. Sure, I'd love to know these things. But I still don't think I should spy on my kids. Teens deserve a little trust and space until they do something that requires me to hover over them.
So who do I think should consider this card? If your teen has already broken your trust, then BillMyParents could be a useful tool. You may also want to consider it if your teenager has shown signs of a spending problem and you feel you must see where every dime goes.
I could also see it making some sense for the parents of tweens who for whatever reason feel their 11-year-old must have something to swipe at the mall. Otherwise, I think I'd stick with a cheaper prepaid card or even make an older teenager an authorized user on your credit card. You'll still get the bill with all the charges, but your child will also start developing a credit history as she piggy backs onto yours.
Would you like to see every purchase your teen makes?
Stacey Bradford is the author of The Wall Street Journal Financial Guidebook for New Parents.
Baggu image is courtesy of Flickr, CC 2.0.
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