Because celebs endorsing prepaid debit targeted at kids has never blown up in anyone’s face, Justin Bieber is throwing his name behind a prepaid debit card for kids. Just putting this out there, but you know what would work even better? Kids actually getting part-time jobs and real debit cards and learning on their own how to be financially responsible through trial and error. Fox News reports …
Justin Bieber, 19, inked a lucrative deal with BillMyParents to endorse its teen-focused SpendSmart prepaid card, for which he is reportedly being paid $3.75 million for a 14-month contract, plus monthly royalties linked to the growth of the card, and an option to buy two million SpendSmart shares. According to the New York Times, the average age of a SpendSmart user is 16, and the card is most often used to purchase fast food, gas, gadgets and clothes. The card has a monthly fee of $3.95, which translates into around $50 annually, additional charges to load money onto the card ($2.95 from a debit or credit card or $0.75 from a checking or savings account), a lost card replacement fee of $7.95, ATM fees of 50 cents per balance enquiry, $1.50 every time cash is withdrawn, and a $3 charge if the card inactive for 90 days.
Okay, real talk here: When I was fifteen, I got a part-time job as a busboy and I set up my own bank account and everything. The first paycheck I got, I ended up blowing it immediately like an idiot because let’s face it, I was a kid. I never had to deal with that much money before, and I ended up learning that having money saved in the bank felt great and that I could buy things I liked in moderation so that I never ended up broke. THAT is how teens are supposed to learn how to be financially responsible, not some rinky-dink card you don’t know enough about that’s riddled with fees.