Last week I responded to a letter from a teenager who wanted to get one of the new online debit cards aimed at teens. The cards, such as PocketCard and Visa Buxx , let parents transfer money into an online account for their children. While the cards are billed as a budgeting tool for teens, the young lady who wrote to me seemed to think of them as a direct pipeline to her parents' wallet.
Kids can see it, feel it and touch it.
Never underestimate the impact of an empty piggy bank. Despite their safeguards and savings features, the main purpose of online accounts is to help teens spend money. Kids under 18 can't have credit cards of their own, so payment cards are a way to tap the youth market, especially online, without antagonizing parents. While there's nothing wrong with kids spending money on the Internet or anywhere else, it's even more important that they get experience managing cash before they start buying things with electronic blips. Kids should be spending their money, not yours.