This may not be good news to parents out there, but Discover has introduced a prepaid debit card available for teenagers that has some added features that may appeal to parents as well.
Features
- Set daily, weekly, and monthly spending limits
- Restrict teen card use in unwanted shopping categories (e.g. liquor stores, tobacco stores, hotels, etc.)
- Free Direct Deposit for parents & teens
- Free deposits from any credit card or bank account
- $0 fraud liability guarantee
- Withdraw cash at ATMs
- Get exclusive discounts at teen’s favorite merchants
- Free e-mail and text message activity alerts
- No minimum balances, loading fees, or credit check
My children are not old enough to need anything like this yet, but it appears there are things in here that would allow you to help educate your teen on how to use credit and also that they have to pay it back before they leave home.
One idea that came to mind is you could load it with $100 an inform your teen that they have a $100 limit. You can check the balance to see how much they have spent each month and then provide them the opportunity to pay you in full or pay a portion and you can charge them an interest payment.
Also use the promo code EX4093 and try it for free for a month.
If anyone has this let me know how you like the features and the product.
