Do you want your allowance in paper or plastic?
American Express just released the PASS Card from American Express, a prepaid reloadable debit card for teens that aims to simplify how parents and teens manage money…without the need for the teen to have a checking account or credit card. Here’s how it works:
The PASS Card for teens
Parents fund the card by check or electronic transfer and teen cardmembers can spend the money loaded on the card. Because Pass is prepaid, you can’t spend more than you have. That saves you from throwing away money on interest or overdraft fees like you could with credit or other debit cards.
Plus, the Pass Card is a stylish way to pay anywhere American Express is accepted: you can choose from four colors and customize your card with an image of your choice. (It’s also earth-friendly; the Pass card is made from recycled plastic).
The PASS Card for parents
Of course, Amex is hoping that the Pass Card will make parents happy, too. According to an American Express survey, 55 percent of parents give their teens an allowance…an average of $66 a month.
With the Pass Card, both cardmembers and parents can track spending online, in real-time, 24/7. Parents can activate and deactivate ATM withdrawals as needed. If lost, a Pass card is fully replaceable. And, the Pass Card comes with 90-day purchase protection and roadside assistance. That’s nice peace-of-mind for cardmembers and parents alike.
PASS Card fees
Reloadable debit cards aren’t new, but they’re gaining traction as the world moves away from cash. The American Express Pass Card and similar products work like regular debit cards (but without the bank account): you can deposit funds, make purchases, or withdraw cash at an ATM.
The biggest downside to reloadable debit cards is, usually, fees. Some charge a buck here or there for nearly everything. American Express has done significantly better.
There is no monthly fee for the Pass Card, and one ATM withdrawal per month is also free. Additional ATM withdrawals each month cost $2.00 each. There are no reload fees as long as the reloads are done on the American Express website via a linked bank account.
Whether you choose the American Express Pass card, a bank account, or even a credit card, what’s important is that you don’t just spend money, you manage it. That means deciding ahead of time what you want from your money and making a plan to spend and/or save it.
Disclaimer: This content is not provided or commissioned by American Express. Opinions expressed here are author’s alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through American Express Affiliate Program.