Justin Bieber and financial literacy who would have thought that he would want to teach teens how to “get money”. I almost thought I was seeing things for a moment when reading the news this morning but turns out my coffee was indeed strong enough. I’m not a Belieber but I am a believer in spreading the word about financial literacy.
Bieber has stepped up and is backing a real-time monitoring debit card for kids through a Spend Smart Payment company in an effort to spread financial literacy awareness to the teens of today.
We’ve talked here at CBB about how the school system should teach kids to “get money” (in other words to understand) so they can live a life not riddled in consumer debt, and now this new type of debit card is in the spotlight. If parents struggle to talk to their kids about money this is the perfect way to bring the topic to the table but in a “cool-kid” type of way. I’ve said it more than once on this blog that “convenience costs” and that’s pretty much what this service will be, a money lesson with a convenience price tag.
The card which apparently has a MasterCard logo on it (maybe a psychological way of making the kids think it’s a credit card) when used sends an alert to the parents to let them know what their kids are trying to spend money on. Parents have the authority to decline purchases or lock the card from their smart phone or through text messages.
Are parents really prepared to watch every move their kids make financially with this card? Will the kids feel they are being treated like a baby who can’t spend money without permission from mom and dad. We do have to teach them about responsibility after all and learning to make their “own” decisions without someone else’s approval. Maybe that’s what the card is for, earning that right to spend, who knows.
Fees For The Card: As per the article
- monthly fee of $3.95
- $2.95 loading fee from a credit card or $0.75 from a bank account or free if scheduled monthly
- $1.50 to withdraw from any A.T.M. (in addition to A.T.M. surcharges)
- 50 cents for an A.T.M. balance inquiry
- $7.95 for a replacement card
- $3 for 30 days of inactivity
To some extent the fees seem to be comparable to many traditional banking and credit card fees. I find in Canada there are fees for just about everything when it comes to banking. The inactivity fee is what I don’t care for at all. It seems odd when it’s your own money and you are being penalized for not using it. It seems like they are sending a message to the kids “spend or else” it will cost you. That will be the day I get penalized for not spending my money.
I don’t know about you but that seems a bit counter-productive considering the point of the card is to encourage smart teen spending.
If it were my kids they would be getting cash from any money they earn and I’d be teaching them about budgeting, saving, wants and needs while making smart choices. That’s just the way we as a couple would work together to make sure our kids “get money” before money gets them.
When I was growing up I went the traditional route of opening my own bank account and saving my money with my parents guidance. They never told me, “no” they trusted that from their parenting talks about money with me that I would make adult decisions about how the money should be spent.
They led me down the right path, it worked for me but might not work for others. I used cash as a kid but today kids are credit card happy because of the ease of getting one especially College or University students. Leaving for school with a credit card if not used properly can cause even more debt to be added to the already mounting OSAP loans that many carry.
I agree with Michelle Jun, the lawyer in the article about building a credit history and relationship with the bank and with this card your child won’t be getting any of that.
Should parents be teaching their kids about money, sure if they know what they are doing themselves. You can’t teach your kids something that you aren’t able to get a grip on yourself. Kids know when parents are having money problems, they sense these things and they do have eyes and ears, somebody is watching you.
I believe parents should be on a quest to raise financially literate kids but at what cost is up to them. Not all parents know how to handle situations with their kids and some take it to the extreme like this one couple using public humiliation to teach their daughter a lesson.
If anything, taking this idea to Bieber and paying him to spread the “financial message” to the teen masses is a brilliant marketing idea. The kids of today are knee-deep in social media, it’s an environment they grew up in and it’s like their second family. The eat, sleep and breathe Facebook, Twitter and many other forms of social outlets.
Bieber didn’t grow up in a family with money and he knows what it’s like so it’s easier for him to relate to the kids from both sides of the financial fence.
“You know when I was a kid, we didn’t have a lot of money, so me and my family had to watch the money that we spent,” Mr. Bieber says in a video directed at his young fans. “I learned if you have $100 or $100 million — if you spend more than you have, you’re going to go broke.”- Justin Bieber
Bieber has captivated his audience and if he can speak to the generation of kids who may well be running this Country for us one day then so be it. It’s not a bad idea to have someone that many kids look up to spreading the word about money and finances.
Even though the card may have good intentions I’m just not sure if the card will be greeted with open arms by the parents and the children. Time will tell and certainly something I want to follow along with and watch happen.
Financial literacy should start from an early age because I believe if the younger children “get money” early on in life the better off they will be down the road. I’m not for or against this card because I believe in the message and I believe in financial literacy for kids and I also believe that parents will do what’s right for their own children.
You can read the entire story here.
Questions: Would you get your child this card? What are your feelings about all the fees? What system do you currently use to teach your teens about money?
When I saw this Apple Fyri’s Cake at Maggie’s One Butt Kitchen I just knew I had to make it. We both love apples and this recipe looked easy enough to whip up in a flash. You can’t buy a cake like this vs how little it cost me to make it homemade. Not only was this cake ready to eat shortly after dinner, we didn’t eat it (sad but true) we gave it away to some good friends of ours. Our friends helped us out so we decided to make this cake for them.
The feedback: Amazing! The kids said that they wanted more and the parents told us the cake was moist and perfect with their morning coffee. That made us feel good to hear that so now we will make our own version of this cake. In this picture the only difference from Maggie’s recipe is that I added walnuts and vanilla.
The next one I make I will switch it up a bit to create my masterpiece using the apple layering principle she has here. I will make it an apple coffee cake with walnuts and vanilla with a cinnamon sugar-nutmeg topping. I may even drizzle it with a bit of hot caramel. Be on the lookout for this upcoming Sunday recipe on the CBB blog.
PF WEEKLY READING LIST
Here is this weeks reading list which includes some of the best blog posts from many blogs that I interact and comment on and who also have a common interest in CBB.
I hope you all enjoy this weeks round-up. There are a few more than normal that I really enjoyed so I hope you enjoy them as well!
- Top Reasons Not To Buy A House– My Alternate Life
- How a 17 Year Old Prepares Her Financial Future- Reach Financial Independence
- Bad Advice From Top Money Gurus- Average Joe
- Is Living In A Small Town Better?– Eyes On The Dollar
- How To Use Credit Cards Responsibly –Krant Cents
- A Leak In The Pool And In Our Pocketbook- Planting Our Pennies
- Renovate Your Home Without Breaking The Budget–Modest Money
- Beyond Bankruptcy, Living A Debt Free LIfe The Right Way– One Smart Dollar
- How To Cope When Working Internationally– Debt RoundUP
- Insurance Needs Follow A Life Cycle– My Own Advisor
Recipes/Frugal Blog Posts of the Week
Top Recipe: Homemade Ricotta– Aunt B on a Budget Thanks Beth this is awesome!
- The Joy Of A Simple Meal- The Frugal Farmer
- Guacamole Recipe– Freedom Thirty Five Blog >> I’ve got one too which is a bit different Mr.CBB’s Guacamole!
- Twisted Cinnamon Rolls Recipe– The Norwegian Girl
- Shortcut BBQ Chicken Salad– LIl Suburban Homestead
- Spicy Red Lentil Soup–Budget For Health
Inspirational or Funniest Post of the Week
Inspirational: When I read Glen from Monster Piggy Banks post “Time Is Money- What Are You Sacrificing For Money” the same day I published “Life, Money and Retirement-Skype Doesn’t Reach Heaven” I wondered if we were both struck by the life bug. Two inspirational stories both reading this week and that I encourage you to read.
Funniest: My Gift Card Made Me Do It– Thirty Something Student blaming his gift card for the reason to spend
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- Do You Have A Question For Mr. CBB? The best way to get in touch with me is on Facebook
- PF Weekly Reading List #10-Can I See Some Stolen ID Please? (canadianbudgetbinder.com)
- PF Weekly Reading List #11- Free Money, Want Some? (canadianbudgetbinder.com)
- Personal Finance Reading List #9- Welcome March~ B.C Pooled Pension Plan (canadianbudgetbinder.com)
Photo Credit: Boy Holding Debit Card/Freedigitalphotos.net Stock Images