Recently, I was listening to a radio show where the topic was credit cards for kids. Most are prepaid cards that function like a gift card but are accepted wherever credit cards are. Do you think they’re a good idea, or a bad idea? Why or why not? Would you ever get one for your child?

I think this is interesting. I think I would do this for my older kids, 12 and 15. There is a huge potential here to teach responsibility. I would put a set amount and say when it is gone it is gone. If you earn your own money, or receive money as a gift, you could also add money to your card to keep it going longer. I think this is a good idea if you use it as a learning tool.

Good question, Mr. Mommysavers!!

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I've grown certain that the root of all fear is that we've been forced to deny who we are. ~ Frances Moore Lappe

I probably would not ever use one. I would just teach my kids to use their cash wisely. Unless one of my kids was going on a trip or something like that where I did not want them to carry the cash with them. Then a card like that could be useful.

Nice to "see" you posting Scott!!

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Do you not know that in a race all the runners run, but only one gets the prize? Run in such a way as to get the prize. 1 Corinthians 9:24

I think it reflects the way our society seems to be moving, and could be a good springboard for a lesson. I don't see it as much different than a giftcard, except it wouldn't be store-specific. It's been said that people spend more when they don't use cash (I'm the opposite-it's too easy to spend cash: no written record like my bank statement where my purchases glare at me online). But this could be a good way to teach the kids to be part of a different trend: learning how to do numbers in their head and keep track of their "budget".

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I agree this is the way our society is moving and teenagers, like it or not, probably need an introduction to them. But I also think it is really hard, when you're paying with a card be it debit, credit or even a gift card, to visualize just how much money you're actually spending. I know for me, as an adult, it is difficult. I also know my then 3-year old wanted something this past summer and I said, "We don't have the money for that right now." Her comment? "Mommy, give them your card."

My 17 year old got a debit card when she was 16, but does not have an actual charge card. The debit card she got the summer she got a job and deposited part of the money she earned (the rest she bought a CD with). It does have parental limits, but I just put things like no more than $100 per purchase, etc. It's her money so I don't really worry about it. She uses it like cash when she goes out with friends to eat, shop, etc. and I actually like her having it.

I have heard stories though of kids who got them when they went away to college and abused them. I guess you just have to look at your child and see how responsible they are.

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Well, my parents explained to me what credit cards were when I was in junior high and I had no trouble understanding the concept. My parents gave me a debit type card when I went away to college because they did not want me to work for spending money, so they put money in the account for me and I could use the card anywhere around my college town, the bookstore etc. Again, I had no problem understanding that I had a certain amt of money to spend, per period of time, and I kept track of all my expeditures etc *shrug* To me, not rocket science. My kids are only 9 and 12, and they understand how credit works. Depending on the situation, I wouldn't be opposed to my child having one, I would make sure they were fully informed and understood the perimeters of the card.

I think it could teach children/teens responsibility without the added dollars of interest.

I have always had a debit card with Visa and up until recently we didn't have a credit card but now we do and its bad news.

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Melanie.
Mum to Lillianlee- 1st September 2006.

Monkey Mia's Savings... (my blog)