The American Express Pass Card is not a credit card. It is actually a prepaid card that can be used by parents to teach their young children the basics of budgeting and proper spending habits.
With this particular card, and parent can track their young one’s spending habits and give them tips on a regular basis when it comes to how to manage their money in a wise manner.
The best use of this card is for allowances. Back in the day, kids were given some cold hard cash on a weekly basis. These days, allowances are handed out on prepaid cards.
The good aspect of this card is that there is no chance of your son or daughter getting into financial trouble.
They will only be able to spend the amount of money that you actually load on the card.
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Safety Nets for Your Children
When your child is using the American Express Pass Card, you do not need to worry about them overdrafting a bank account or going above a certain spending limit.
There are many different safety nets involved with this card, and you never have to worry about your son or daughter learning a financial lesson the hard way. Here are some of the key safety nets included with this card:
- If the card is stolen and fraudulent transactions are made on the card, then you will not be liable for any of those fraudulent transactions. This is especially calming since you will be actually loading money onto the card.
- You can reload the card when your child is in trouble. If your teen is on their own in a strange place for the first time, it is nice to know that you will be able to help them out with some easy cash when they need it.
- No fees for going over the limit. This is a prepaid card, so the card will simply be declnied if there is not enough money left on it.
Financial Lessons for Your Teens
This is the perfect first debit or credit card that you can get for a teen. Let’s take a look at some of the key financial lessons that a young person can learn when they start using this card for the first time:
- Financial responsibility is the most important lesson to be learned with this card. Your son or daughter will learn quickly how to manage the money that you give them, especially if you are giving them a set amount every week or month.
- You can track your teen’s spending habits online, and you can also receive text messages every time the card is used. You can easily breakdown your teen’s spending habits and point out some of their most common spending mistakes.
- Your teen can learn about rewards programs through the discounts offered with this card at certain retailers. Some of the retailers that offer discounts when this card is used are music stores and Apple.
What Other Perks Come with This Card?
The American Express Pass Card is made of eco-friendly materials, which means you can also help the environment when you use this card. Some of the plastic used to make these cards actually comes from recycled materials.
Roadside assistance is another perk that comes with the American Express Pass Card.
A specialist will be able to come to your teen and provide them with up to two gallons of gas or even help them change a flat tire if they find themselves in trouble.
Global assistance is another main positive aspect of this card, and your teen will be able to call a phone number in case of an emergency while they are traveling.
This means you never have to worry about your teen having a medical or legal emergency while they are in another city or country.
One last option that your teen will probably enjoy is the ability to personalize their card with their own photo.
There are four different base colors to choose with the American Express Pass Card, and your teen will be able to add an image of their choice on top of the main background of the card.
Finally, here are three features of the card that a parent loves to see in this kind of card that is targeted towards teens:
- A parent can order up to three different American Express Pass Cards. It should be noted that any of the children that are getting the card need to be at least 13 years old.
- Purchase protection is offered on this card, which means you never have to think twice about making a purchase. Teens can run into a lot of trouble when it comes to something going wrong with one of their recent purchases, and they will be able to get 90 days of coverage when they use this card. If the product is broken or stolen within 90 days of the purchase, then the teen will be able to get their money back.
- One last feature to mention is that your teen will have access to customer service for their card on a 24/7 basis. This means that your teen will always be able to call for help when there is a problem with their card, and this is a great way to introduce them into the world of dealing with customer support.
Are There Any Problems with This Card?
Pretty much everything mentioned so far has been rather positive, so let’s take a look at a few of the negative points of the American Express Pass Card. The main drawback of this card is the $2 ATM withdrawal fee. This can be avoided if your teen always decides to use the card instead of cash, but there are some situations where cash will be the only option.
It is also important to realize that you will only be able to check up on your teen’s spending habits if they are using the card for purchases directly.
Once they convert the card to cash, they could be doing anything with the money.
Some parents will view that 13 year old age minimum as a negative thing, but this is not really something that most people should worry about. There is really no reason for a 12 year old to have their own debit card, so this should not be an issue that many parents think about too hard. You will have to resort to using cash for any child in your household who is under the age of 13 and needs an allowance.
Should You Get This Card for Your Teen?
This card is definitely a solid option if you want to teach your child about financial responsibility. The only way your teen is going to be able to learn how to budget their own money is if you give them a chance to do it.
Most teens will run into a lot of spending problems when you give them this kind of card for the first time, but you should hope that they get all of their mistakes out of the way with this card rather than waiting until they are in college and get their first credit card.
The main reason that this card makes sense for young people is that many college students run into problems when they get their first credit card while they are away at school.
It is extremely important for your teens to understand the importance of remaining fiscally responsible, and the best way to do that is to give them a monthly budget to work with while they are young.
This will be beneficial to them once they start to bring home their own paycheck every few weeks and need to spend a certain percentage of their funds on survival.
The added perks that go along with this card are great, but the real value in this card is the knowledge that your teen will be able to take in over the period of time when this card is used. While most parents never want to cut their kids off financially, the fact of the matter is that they will have to do it at some point.
It is important to remember that your teen will only be able to take in the financial lesson if you actually stick to your guns when it comes to only adding a certain amount of money to the card every month.
Many adults use prepaid cards to get their credit scores back in order, but these kinds of cards will have no effect on young people. This is probably a good thing because your son or daughter will definitely have some unhealthy spending habits when they first bring home this card.
As long as you teach your teen to spend wisely and budget the money that they are given on a monthly basis, this card should turn out to be a solid option for you and your kids. !
Finding the Right Credit Card
No matter what card you’re looking to apply for, it’s always best to compare several options before committing to one. The easiest way to find and compare credit cards is through our FREE chaser tool above!
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