Kardashians target teens with prepaid credit card
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.
Encouraging spending
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.
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