A credit card is not always the wisest choice in teaching teens money management. But you don't want to give them cash, either. Really, it isn't easy to get your college student cash fast or free when they are pretty far away.
Discover Card has come out with a great new way to solve these dilemmas. The Current by Discover is a debit card for your teen that you can control. You can control the amount they spend, and restrict them from certain spending, like ATM's or liqueur stores. It is free to transfer money through your bank account or a credit card instantly.
There is a $5 fee per month (though if you pay for the year you will save $10) but that is offset through the lack of ATM fees. Three per month are free, the rest are only $.50. The kids can pick out their own style card from 7 teen designs.
I think this is a great way to be able to watch what your child is doing and to teach them good spending habits. They can have their paychecks automatically deposited to their card and set a limit of $50 a month (or whatever) to spend, making the rest go to savings for college or a big purchase they want. (prom)
The Current will help eliminate those lost allowances, too. If the card is lost, you can freeze the account until it is found, and easily reactivate it when it is found. No more lost money!
I really think it is going to be a great investment for helping Kaytlin while she is away at college. We want to be able to help her with books or meals, but not have her spend money wherever she wants. So just giving cash is not an option. Even though Kaytlin would put the money where we asked her too. But for us to be able to immediately get money to her if something comes up is important to us. I think this is a great option for us.
What money woes do you have with your children?
Thank you to Current by Discover and MomCentral for this review.
1 people think my kids are qtpies:
That is a cool idea - my kiddos are a little young for it right now but what a great option!
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