MILWAUKEE (WITI) -- Parents are spending billions of dollars on their teens every year and now, a pop star wants a piece of it!
Prepaid debit cards are becoming more and more popular with parents. It's easy to load up just what you want your teen to spend, and the money is controlled. But one card might really make you scream!
Pop-star Justin Bieber is endorsing his own brand of debit card, called the "SpendSmart" card. It's geared toward young teens as a tool for good money management.
But you might get more than "Bieber-fever" when you consider the costs that come with the card:
- a monthly fee of $3.95
- a $2.95 charge each time you load money onto it from another card
- $1.50 each time your teen uses an ATM for fast cash
Remember, this is just to get access to your money!
Plus, Wisconsin's Department of Financial Institutions says many of the protections that apply to debit and credit cards do not apply to prepaid cards, so if something goes wrong the state won't step in.
A prepaid card can work for you and your family. Just be sure to read the fine print and all the terms and conditions, no matter how lengthy. Be sure you know the fees involved and weigh the benefits of the service versus the cost before making a decision.