Pre Paid card for kids pocket money?

Raksha

Does anyone else do this? My boys are 13 and 15, and remembering each week to have cash for their pocket money has proved difficult to say the least.

The only problem I can see is that most of the pre paid card sites say you have to be over 18 (which they aren't) so it would have my name on it (if you can apply for more than one), which would mean they couldn't purchase something without a chip and PIN (I am imagining they would each have their own card, topped up once a month (minus 'deductions' for chores not done/detentions and missing homework - you know the score) and then they can spend online or withdraw cash (subject to card charges etc.) as they want.

Svenena

For cash, wouldn't it be better for them to have their own accounts with cashcards? I had one of these when I was a teenager. This would probably be cheaper (ie free) for withdrawals, and they can also save in them, so learning about managing a bank account. You could set up a standing order to pay in the money. Wouldn't be able to use them for online purchases though.

ashleygunn

Most banks (ie Halifax) do accounts for under 18 year olds with Visa debit cards (Electron in Halifax's case). The accounts pay interest when in credit and there are no silly transaction or ATM fees that are likely to be encountered with pre-pay cards. Getting a bank account might encourage the kids to save!

laurel7172

(They can't go overdrawn with an under 18 debit card either, btw.)