Just what I wouldn’t want my children to have: a Kardashian Prepaid MasterCard, which is being marketed to the impressionable teen demographic.
“There are no other better people to represent this card because of their significant fan base, especially to reach the younger audience,” says spokeswoman Eve Sarkisyan.
Aside from the fact I find nothing worthy about encouraging teenagers to admire the Kardashian sisters, an expert points out the troubling financial aspects of the card.
A finance article says this:
According to the card’s fine print, the card will run you $99.95 for a year or $59.95 for six months. After that it’s $7.95 per month. There are also the typical ATM withdrawal fees. By contrast, a recent Consumers Union survey that looked at 19 prepaid cards found that activation fees tended to start at $3 and reach as high as $40. My fellow MoneyWatch blogger Dan Kadlec the Upside Edge from Visa — a teen card that costs just $29.95 a year, allows for free reloads from a parent checking account and gives cash-back rewards equal to 1% of funds loaded.
“A waste of hard-earned money,” says my friend and financial literacy expert Susan Beacham, CEO of Money Savvy Generation. “The real deal is a free traditional debit card that is linked to a checking account. And when you link a debit card to a checking account you also help your child keep their spending ‘in check’ — as they can only spend today what they have in their own bank account today.”
Bottom line: Skip the designer plastic. Account balances are a much more sensible thing for your kids to “keep up” with.
So would you let your kids get this card?