Watch out for Cashplus

Capyboppy

In the Financial Mail today there is an article about a new type of card called cashplus financed by Advanced Payment Solutions. APS think this will appeal to students, and is an ideal way of parents topping the card up to help out.

Don't bother. Not only is there a joining fee of £9.95p, there is also a monthly charge of £4.95p. This would be much better in your purse or your child's. Another disadvantage is that statements are sent to parents rather than the student, which lessens the learning and managing process of the young person.

If a parent or relative wants to help out financially all they have to do is top up their account at their local branch. They don't need to pay £4.95p per month for the privelege of doing so. If the student is worried they may be tempted to spend more than they have in their account. All they need to do is stick to a Solo card. This is like a debit card but it won't allow funds to be drawn out that aren't there. My daughter has had one from 11 years old and she is well on the way to managing her money at 15.