that way they won't lose the money, and I can easily transfer money into it.

Well, open my eyes...

[www.allowcard.com]

Some people would argue that it may be a good idea for kids to "see" the cash they are initially earning. Also it is good for them to learn to save money and learn how to use a bank.

If your kids are old enough to understand money,the responsibility associated with it, and you don't care that they take initiative to "save" money (presumably a small amount) in an interest earning account, then go for it.



Edited 1 time(s). Last edit at 01/03/2006 02:04PM by grad.

They could also loose the Debit Card.... which may be worse than loosing cash.

Be sure to check what happens as the balance gets low... I've heard some cards will not let you do a partial payment off the card (to zero, say) with the balance in cash.

What I've done is to open a bank account at my bank for my kids (Wells Fargo). It comes with an ATM card that acts as a Visa debit card. It is attached to my account and is free. When my son was working as a sacker this past summer, he could do direct deposit of his checks, which was great. And I can see the account on-line with my accounts, and transfer to it freely, for reimbursements.

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Don't ask who the bell's for, dude. It's you.

Looking at the cardholder agreement:

If you do not have enough value loaded on your Card you can instruct the merchant to charge a part of the purchase to the Card and pay the remaining amount with cash or another card. These are called “split transactions”. Some merchants do not allow cardholders to conduct split transactions. Some merchants will only allow you to do a split transaction if you pay the remaining amount in cash.

So it seems it's up to the merchant in this case.

But be sure and check out the fees...

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Don't ask who the bell's for, dude. It's you.

How old a kid?

I don't think kids should be anywhere near a credit or debit card until they're in their teens.

Having cash teaches kids how to count, how to be responsible for their money, how to budget, how to save, how to deal with losing cash... meanwhile having a credit or debit card just teaches kids how to spend.

i agree with MacMagus. unless you're talking about a teen, i think it's important for kids to SEE the money rather than having funds magically appear.

it's a different kind of choice when you have coins/paper money in your hand burning away than having money availability. it's also important for them to repeatedly experience paying for something, counting out change, and learning to count the change they receive back to be sure they are not being cheated.

I agree with grad.

And I also don't think teens should have one either, unless you're talking legal teen ages.

bah, making them use cash so they understand money is like making a kid ride a horse before they drive a car

(p.s. i sent this via carrier pidgeon to prove a point)

Credit/debit cards are mistakes for pre-late-teens. They really need to get a feel for the ebb and flow of cash before going to an abstract system like checking or debit cards. Once you do get them a debit card, make sure they keep an up to date register at all times (a debit card is no different than using a checkbook except that you get a receipt instead of write a check).

Do you have a salary cap on their allowances?

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I think the debit card would be better to lose than cash. Plus, we would get reports on all the spending. Of course, we'd BE THERE while they are spending it, and probably even enter the PIN for them.

I like the horse/car analogy. This is a cashless society now.

They are 8 and 9.

They know how to 'count', too. Quicker than me at times.

I would not get the one I linked to, but another one from my FCU.

SteveJobs Wrote:
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>
> I like the horse/car analogy.
>

Stevejobs...you know he was being sarcastic, right???????


Also, knowing how to count is different from knowing the "Value of Money". For example: How much is the value of $1 versus $20 and what can I buy with each, and why should I save money.

They also seem to young to handle a debit card right now, especially because you will be performing their transactions for them; it doesn't make sense at this point in time.



Edited 1 time(s). Last edit at 01/03/2006 04:01PM by grad.

A bit more serious -

I do think it would be silly to give a kid any sort of card. Older teenagers - okay. Might even be fine while they're still in high school.

I really don't understand why people get all up in arms over the "dangers" of credit cards. Usually, these are the people that can't handle them. The card isn't the problem - its their ability to handle money. Spending money you don't have will always hurt. (hey, at least you're not dealing with the mob anymore)

its definitely a good idea to keep the money tangible for younger kids.

of course, it all depends upon the kids as well.

SteveJobs Wrote:
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> that way they won't lose the money, and I can
> easily transfer money into it.
>
> Well, open my eyes...

Ah. So you'd give your kids the crack cocaine that the dealer wants you to give them.

Because that's what that little plastic card is--their indoctrination into the plastic society, where actual money never changes hands--you just swipe the card! and worry about it later.

I have kids aged 14 and 8. No way would I give either of them a debit card. They are learning the value of money by seeing it in paper and coins. They enjoy counting their money and keeping it safe, which I think are great values. They're received gift cards as presents and they don't seem to have nearly the same impact. If you want to use analogies, it's like giving them a calculator before they can count or a computer before they can write. Beyond analogies, the power of money is best learned when handling the real thing. Save the plastic experience for after they graduate from high school.

My dad started my sister and me on $2.00 a week. Eventually that made it up to $5.00/week. He got us each a small (~5"x7") ledger book. In the front, we wrote down all the predictable expenses we'd have during the year (family birthdays, friends' birthdays, X-mas, etc.) and also how much we could expect to "earn" through our allowance. Then for each week we got allowance (or any other income) he had us enter that in the book. Same for expenses.

Similar to this:

5/4/1978 Allowance $2.00
5/9/1978 Movie with Joe -$3.50


etc.

I *may* use a computer program (maybe just Excel) for my daughter, but wouldn't even rule out the paper and pencil method my dad used. I think it helped *immensely* in making me a fiscally responsible person as well as being good at math!

are you kidding?


cash is still a big part of this culture

Hey, I'll be silly and blaze a trail for my kids. Yes, they know how much stuff costs and how hard it is to earn money. I TELL THEM ALL THE TIME.

Plus the value of savings/investments. We've been to my financial advisor's office 5 times in the last two months. And, setting up more vehicles for investments for them.

We started our kid with cash and then added a VisaBuxx prepaid card. We got her the card at 14, and she's still using it in college. It costs $5 per year to have the card and there are no fees to load it if I use my bank account from the same bank as her card. There is a $1000 limit on the card.

Over the years, it was stolen once and she lost it once. In both cases, it was cancelled with a phone call and there was no loss of funds. That, to me, is a major advantage of the card.

We were aware of the value of handling money; Her allowance always came in cash, although many times she would ask me to put it on her card, handing me the cash back. I can fund the card on the web site or by phone. This is another advantage of the card-if she is at a distance and needs some money instantly for a critical purpose, I can provide it electronically. That happened earlier this year. She had a bill larger than her credit card limit, called me and 2 minutes later, her debit card could cover it.

SteveJobs Wrote:
-------------------------------------------------------
> Hey, I'll be silly and blaze a trail for my kids.
> Yes, they know how much stuff costs and how hard
> it is to earn money. I TELL THEM ALL THE TIME.

and if they're like most kids and most of us as kids, TELLING IS RARELY SUFFICIENT.

tactile learning can go a long way in this and many other instances. money on a debit card is too abstract for 8 & 9. i'm not saying they can't handle it, just that the learning experience of cash in hand to my mind is so much more multi-leveled and valuable.

also, for me it would be an issue of control. when my son gets his allowance he has complete ownership of it. if you are micro-managing their debit card usage, monitoring reports on their usage/entering the pin, you're short circuiting their burgeoning autonomy in the experience. problematic on so many levels.

good luck with however you decide to go, though.

Go with the debit card. Nothing but trouble follows giving teens cash... I remember.

Okay - bank won't issue debit card for under 18 or 16 .

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