Ive heard nowadays you can buy and put money in a certain kind of credit card so that someone may use it to buy things where credit cards are accepted, or online.
Those pre-paid cards come in two flavors. One is re-loadable and the other one is a gift card.
Gift cards have certain amount like $100 on the card account and that is all that you can spend. Since banks make most money on what remains unspent on this card (usually $1 or less, but still, it is your money) I would not buy those cards for kids.
Re-loadable pre-paid cards are great since you can always add money to their account and you can even make a deal with your bank to automatically place certain amount on that card every month. It is a great way to teach kids to be responsible with money since you can say something like "You get $100 a month and if you spend it all on the first day, know that you will have to wait 30 days before you can buy anything for yourself!"
I really think it is a great thing and the possibility of kids losing the money is minimized.
not really, if and when i have kids i will probably be as strict as my mother and pretty much never let them out of my sight. so no because they wouldnt go to the store without me
why not? i don't see any disadvantages. When they get older they well probably be using them anyways. Same as money but in plastic form. How young are you talking about tho?
Sure - it's no different than giving them a debit card or cash ... the money has to be on the card for them to use it, so it teaches them how to manage their money.
I would. Once their out of money they can't go into debt :D They learn to spend what they have responcibly and I'd only give em' a little bit every month :)
If they prove they're responsible ;; my dad opened up a bank account for me,