Archives For Prepaid cards

bieber

We read about them in newspapers, magazines, see them on our TV screens and now some have even crept into our wallets.

If you thought celebrities were only seen through the media, think again as more and more celebs are endorsing their very own prepaid cards.

Prepaid cards are great options for those who are “unbanked” or who can either not afford bank charges, or those who simply choose not to have bank accounts but want an option of not having to carry cash on hand. And it seems that quite a few celebs are riding on the prepaid bus, and charging big costs at it too.

Previously we blogged about the launch of teenage heartthrob, Justin Bieber’s own “SpendSmart” prepaid card.

Bieber has used his celebrity status and his clear popularity among teens and tweens to launch a prepaid card to serve their needs. The card charges its owner $3.95 per month as well as an extra $1.50 per ATM cash withdrawal. While you may wonder why a teen would need a prepaid card when their expenses consist mainly of entertainment costs? It’s possible that the “Belieber” fan club would go to any lengths to make their loyalty to him known.

Similarly, other celebs like tatooed, bad boy, Lil Wayne, have also been included in the trend. The name may come as no surprise, as the rapper has launched his very own “Young Money” prepaid card. This card comes with a cost of  $4.95 to reload, a $2 charge to use at an ATM, and there is also a $3.95 monthly maintenance fee.

young money

Retired he may be, but former Los Angeles Lakers basketball player, Magic Johnson, also launched his own prepaid card. The “MAGIC Card”  has a $4.95 setup fee and includes other costs such as a monthly fee of $4.95, a bank teller fee of $0.50 and a cost of another $4.95 for adding cash on to your card at a retail store, as well as other costs.

magic

Other celebs on the prepaid card list include the likes of American businessman and Def Jam hip-hop label co-founder, Russell Simmons with his “RushCard”, as well as American author, motivational speaker and financial advisor, Suze Orman with her “The Approved Card”. Other popular celeb prepaid cards include the “Myplash” series of prepaid cards, which have nearly 100 different designs from movie stars to athletes, cartoons and musicians and are aimed mainly at teens. Some “Myplash”  cards have also included So So Happy, Skelanimals, Paul Frank, Emily Strange, Plain White Ts, Rich Boy, Flo Rida, surfer Kassia Meador and the characters from the Twilight movies.

suze ormanrushcard

twilightplain white t's

While some celebs have been proven successful in their prepaid card endeavours, others haven’t had as much luck. Among those include the sister trio of Kourtney, Kim and Khloe Kardashian. The “Kardashian Kard”, which didn’t last a month, was discontinued and heavily criticized for its hefty fees and charges which included a purchase fee of $99.95 inclusive of the first 12 months’ fees and charging $7.95 as a monthly fee thereafter. Other fees also included ATM withdrawal fees, ATM inquiry fees, Point of Sale fees, cancellation fees, replacement fees and many more.

kard

So there you have it. It seems like you don’t only need the media to see the faces of your most loved celebs, now they’re simply a wallet and a swipe away.

Advertisements

There comes a time in every parent’s life when they have to decide when to allow their children to control their own finances and learn the value of money. With a prepaid card kids can jump into the driver’s seat with the tools to teach them how to spend their money wisely, without the threat of debt or banking and identity fraud.

Youngsters must get their parent’s consent when applying for one of the products and they can also monitor what their children are spending their cash on.

There is a great system in the US called “PayJR” : the system allows both the parent and child to review chores through the web site. Printable chore chart and online calendars help parents and children manage chores and rewards. Ongoing “Balance Owed” is tracked by the PAYjr system

The basic premise of a prepaid card means that it is well suited to money management for kids. With no credit or overdraft facility attached children can only spend what is loaded onto the card, meaning parents can keep a close eye on outgoings.

There are no major security risks for kids carrying around a prepaid card either. If the card is accidentally lost or at worst, stolen, the card cannot be used by anyone in-store or at an ATM without the four-digit PIN.

There are a number of scenarios in which a prepaid card can help your children learn to manage their money. Parents may choose to send their teens away on a school trip with a prepaid card, pre-loaded with enough spending money for the duration of the trip. This is much more preferable to handing your kids a wad of bank notes that can be spent all too easily.

If you are preparing for a family holiday you may also consider registering your teens as an additional cardholder and provide them with a holiday budget to spend on activities, food and drink. Regardless of why they need a prepaid card, it is all fantastic experience for your children to understand about money using a real account.

Be careful though, some see the prepaid card as a way for kids to learn that when the money runs out, Mom and Dad can top up the card.