Reality TV show star Kim Kardashian wants your teen to shop with a prepaid credit card. The Kardashian Prepaid MasterCard was recently launched at a New York nightclub, according to the ABC News. The prepaid credit card allows a parent to put money on the card and keep track of their teens’ spending via cell phone.
Prepaid cards can limit debt
Using a prepaid credit card can allow cardholders to avoid wracking up huge amounts of credit card debt. Prepaid credit cards are popular with people who have bad credit or no established credit history, as well as people with low to moderate incomes. Other people use prepaid credit cards to limit their spending as part of a debt reduction plan.
Because many prepaid credit cards require people to pay fees to activate them or when making a purchase, it’s important to read through all the terms and conditions before signing up.
It’s odd that MasterCard would team up with Kardashian, who is known for her lavish lifestyle and not as an example of fiscal restraint — she recently spent $30,000 on a purse, a representative for Mobile Resource, which is the company releasing the prepaid credit card, told ABC News. It’s even odder that the prepaid card is being targeted at teens, who are vulnerable to peer pressure and often pester parents for funds to keep up with the latest trends.
Young people do need to learn about using credit wisely. But they also need lessons in saving, budgeting, and wealth building. Having a credit card — prepaid or not — isn’t necessarily the best way to teach kids about being fiscally responsible, and certainly not if it is being marketed as a way to keep up with the Kardashians.
Chris Rocks is the Regional Director of the National Credit Federation (NCF). NCF is a nationwide membership-based organization that assists consumers recovering from a financial difficulty and those who need a significant increase in their credit score.
Chris began his financial services career as a Financial Advisor helping young families with risk management and asset accumulation strategies. It was during that time that Chris realized that many of these young families also needed someone to guide their choices with regards to debt management.
He made the transition into the mortgage industry where he first worked as a loan originator and later the Vice President of a small mortgage company. As Chris came across clients who had suffered through financial challenges and saw the difficulty they had in re-entering our credit driven economy, he discovered there was a real opportunity to leverage his unique background and help others.
He can be contacted by visiting his personal site, GoodCreditLiving.com.
Francine L. Huff is the Publisher and Editorial Director of Super Savvy Publishing, LLC, which provides editorial and publishing services. She is a gifted author, freelance journalist, and motivational speaker who has entertained and motivated a variety of audiences through workshops, panels and keynote addresses. Francine is the author of The 25-Day Money Makeover for Women, which has inspired and motivated many readers to rein in poor financial habits, become good stewards over their money and work toward a debt-free life. She has appeared on a variety of TV and radio shows. Francine previously worked for the Wall Street Journal, where she was the spot news bureau chief, a news editor and a copy editor. She has interviewed a variety of financial professionals about financial issues and strives to present information about managing money in an easy-to-understand format that is accessible to people of all backgrounds and income levels.
Karen Lawson is a freelance writer with more than 15 years of experience working in mortgage banking and loan servicing. She holds BA and MA degrees in English from the University of Nevada, Reno. She enjoys writing informative articles about debt management and personal finance.