They are safer than carrying a lot of cash. They usually allow card holders to withdraw cash at an automated teller machine, though fees may apply. Many of the cards are issued by MasterCard and Visa and so are accepted by most merchants. One card, Cobaltcard, also has special relationships with certain merchants that offer discounts to card holders. The cards give parents more oversight of their kids' spending habits.
Teens often run through cash without knowing where it went.
The cards provide a transaction record, generally available for viewing by parents and teens on the Internet. Some of the cards come with educational materials to help parents teach kids about managing money. The Visa Buxx card, for example, is issued to parents on behalf of a teenager. Parents can't get the card until they acknowledge that they've administered a financial test provided by Visa Buxx. Judith Lau, a financial planner in Wilmington, Del., agrees it's important to talk to children about how to use a debit card, but she's not in favor of giving them a test.