the National Consumer Council (NCC) expressed concern that giving the cards to children as young as 13 could encourage them to get into debt when they were older. A spokeswoman said: "There is a risk that as parents are charging up these cards, children could get used to using plastic and spending money that isn't their own. This could predispose them to using credit cards when they are older."...
But Mark Kennedy, chief executive of Bluecorner, said the cards were safer for children to carry on them than cash, and they helped promote budgeting skills as there was a limit on the amount of money that could be spent... parents could also monitor on the internet how much money their children were spending, and talk to them about budgeting, while the group also runs competitions on its website for children who use the cards to budget.
Of course they will help kids get used to using plastic. However, disposed though I am to being critical of debt selling, I don't think that this is as bit a problem as the NCC fears; I use plastic a lot but it is savings accounts and debit cards. These are not a problem in the same way as a credit cards. My sons say that they would consider one of these fixed-amount, top-up debit cards but never a credit card, for example. In fact I would consider giving one instead of a gift voucher as they are more flexible about where the money could be spent.
So I think that I've talked myself into cautious favour against my initial suspicion.
Guardian Unlimited Money | Credit and debt | Issuer defends payment card for kids:
Filed in: credit, debt, cards, children
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