I was doing my daily blog reads this morning, and I came across this post about a program called PayJr. It seems that PayJr offers a prepaid debit card targeted at kids ages 13 and older. The premise is that parents can teach their children about credit and debit cards using this card, and the kids will learn to budget and stay out of debt.
I’m skeptical. I would worry that by giving a 13 year old child a debit card, even if it is prepaid, would desensitize him toward credit cards. I don’t have a 13 year old yet, but 13 seems a little young to have a credit/debit card.
Don’t get me wrong. I think teaching kids about the dangers of credit cards and the way to use credit cards wisely is necessary. I’m just not sure this is the best way to do it.
So what do you think? Is PayJr a good concept or not?
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{ 4 comments… read them below or add one }
I would think that first we would have to teach our kids to be responsible for CASH, then move on to credit cards. I have a 14 and 12 year olds and they have to pay for most of their own stuff, by SAVING for it! Novel idea, eh? :)
Well, I am skeptical too, but then again, I never got an allowance.
I would say that since debit cards are a way of life right now, we might as well teach our kids about reality.
I DO have a 13yo, and I am working on teaching him about the evils of credit cards and the potential pitfalls of debit cards. My son gets his weekly pay (based on the amount of chores done and the amount of nagging I needed to do!) and he puts that pay into his wallet or into an envelope for savings. Yesterday he asked me if he would be able to open up his own bank account yet so he could earn a little interest on his savings. He’s learned to quit asking for things because he knows my answer is always “SAVE UP!” This is how we should be teaching our kids…it was the way I learned also.
I think it all depends on the situation. A small balance would give them responsibility if you made them pay for it.