Saturday, 9 June 2007

Pocket Money in the new digital world

Most kids grow up with the concept of pocket money... getting bribed with small amounts of cash for doing "horrible" chores like cleaning your room, doing the dishes, washing Dad's car, and mowing the lawns.

Now in the States, a new kindof "teen debit card" has been launched for kids as young as 13 years old. The PAYjr Prepaid Teen Card lets parents load up their children's cards with allowance money, and aims to teach their teens good money management skills.

The special Teen Visa doesn't have big fees, and parents can use a unique "Chore system" with the card, which pays their children when certain household tasks are completed, or particular targets are met (eg, good exam results).

Kids will be keen on the PAYjr cards because carrying cash around is often a hassle (especially when you're hitting the teen party spots ;-)

However, parents will love it too, because they get to see all card activity, so can keep an eye on what their kids are spending their hard-earned money on, and suspend the card if their teens get out of control.

For younger children (aged 12 and under), PAYjr has a 'stepping stone' option with the same Chore & Allowance system - getting paid for completing jobs - just without the actual card. (You can see how much Mom & Dad owe you, but you'll need to take them to the store to buy that PS3 ;-)

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