FAST FACTS ON TEEN CARDS:

Pros:

• The cards are convenient.
• The cards allow teens to shop online.
• The cards allow teens remedies when they feel they have been "ripped off" by a merchant or when they discover they have been over charged. The cards act as ID.
• The cards allow teens and parents to track spending habits and see where money is going.
• Parents can give teens money knowing that the teen will be accountable for where it is spent.
• Drug dealers don't generally take credit cards so parents can feel confident that the money they give their kids is not being spent on self-destructive or illegal things.
• Cigarettes or alcohol bought using these cards can be traced and parents can look into requesting that charges be laid against merchants that sell these things to teens.
• The cards allow teens to go out without having to carry cash -- if your cash is stolen you don't get it back, if your card is stolen and you report it, you do get your money back.
• The cards can be used to teach teens about budgeting, accountability and financial responsibility.

Cons:

• The cards are too convenient.
• The cards allow teens to be taken advantage of by unscrupulous online vendors -- just as adults using credit cards have been used.
• With the "overdraft" technicality, these cards can and will cost teens and their families money.
• The fees attached to the cards can cost a teen hundreds of dollars each year; money that could be spent elsewhere.
• Using cards rather than cash can get teens in the habit of not seeing their purchases as "really costing money."
• Teens can become too comfortable with the process of buying using a credit card and, as adults, they may be more comfortable using interest barring credit cards over interest free cash.
• Teens get used to the idea of "paying for privileges" and consequently are less uncomfortable with acquiring debt and paying fees when they become adult consumers.

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