No need to worry about coming up with cash for a child’s allowance. Parents can now choose from a rapidly expanding menu of prepaid debit cards, aimed at giving them digital oversight of their children’s spending and saving habits.
“Prepaid has really evolved,” said Christina Tetreault, a staff attorney with the financial services program at Consumers Union.
The latest offerings include cards with slick companion apps from financial start-ups like Greenlight, Current and goHenry. Unlike traditional debit cards, which are directly attached to checking accounts, all must be loaded with money by parents.
The digital tools aim to fix an increasingly common problem: Parents don’t always have cash on hand. So they can be caught short when a child needs money for an outing with friends, to put gas in the car or to complete a chore. With an app, parents can put money on a child’s debit card with a few taps on their phone.
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