ANZ Bank has unveiled a reloadable prepaid Visa Credit Card for teenagers on MySpace so that they can securely spend their money online.
Nick Love a spokesman for MySpace stated that the card would give under 18's who are unable to obtain a credit card more freedom and security to make purchases on the internet.
Teenagers can spend their own money on concert tickets and can also use the card to purchase prepaid phone credit through the site.
John Harries a spokesman for ANZ stated that research had shown that parents were looking for convenient, secure and simple alternatives to cash for young people.
MySpace Visa Credit Card is preloaded and uses people's own money; it is not linked to a deposit account so users do not need to be ANZ customers. The cards have a maximum balance of $1000, and cost $5.95 and are available to teenagers aged 13 and older with MySpace accounts.
Family finance expert Justine Davies thought that the idea had merit and could potentially help parents teach teenagers the meaning of credit card responsibility. The onus is on parents to teach their children how to use the card. Parents would have to set boundaries on what teenagers could purchase.
Ms. Davies stated that from her observation when kids were using their own money which they had worked hard to earn then they tended to be more cautious about what they spent it on.
The MySpace Recharge Prepaid Visa Card offers the freedom of a Visa card, without worrying about going into debt. The card is reloadable, so you are in control of your spending.
Please note that currently the Woolworths and Coles groups are declining to accept any Visa or MasterCard reloadable prepaid cards (including the MySpace Recharge Prepaid Visa Card) as a method of payment.
There are more fees involved. So if you really want to teach your kid financial literacy, please read MySpace Recharge Prepaid Visa Credit Card Product Disclosure Statement before you apply.