On the pro-side, I understand parents want a sense of security, that in emergency situations their kids have access to money. On the con-side, obviously a credit card engineered for teens, is starting our youth down a slippery slope. Exposure to ‘buy now, pay later’ behavior at such a young age, can have detrimental repercussions as they age and realize increased leverage.
I guess the key here, like always, is responsible parenting. But I ask, why is it necessary to offer 7 different designs? This just seems like an underhanded tactic to hook kids at younger and younger ages.
Discover Financial Services has introduced the “Current” card for teens in seven designs. Parents deposit funds directly at no cost from their credit card, bank account or through recurring deposits. This eliminates the risk of overdraft fees. Spending activity can be tracked online at the “Current Account Center” and through e-mail and text message alerts. There is a nominal monthly charge of $5 per card.