The BillMyParents prepaid debit card will allow parents to give their kids accounts with a preset spending limit to help better educate their children about fiscal responsibility, according to a report from SanDiego.com. With this option, parents can load the card as often as they like and monitor where and when their teen makes a purchase. It may provide peace of mind to learn that they can even receive updates on spending via text message.
"That's a big advantage; it's really nice," BillMyParents chief executive officer and founder Jim Collas told the news site. "If my daughter spends $32 a month on nails, I can tell her, 'You're 17. You don't need to do that.'"
BillMyParents cards have no activation charge, and fees of $3.95 per month plus $2 for an ATM withdrawal, the report said.
In addition, prepaid cards are becoming more popular for consumers who don't have access to credit cards or are too young to have an account of their own.