Me: “Would you be willing to pay a 14.2% tax every time you wanted to get a little cash out of your account?”
My 14 year old son: “No, that would be ridiculous.”
So, why is it that the majority of kids using FamZoo prepaid cards are doing just that? I ran the numbers today. A whopping 78% of the ATM withdrawals made by kids in the last 90 days are paying an average of $2.84 in unnecessary ATM fees. That’s 14.2% of a typical $20 withdrawal!
I have to assume it’s because parents aren’t educating their kids about avoiding ATM fees.
Parents, it’s time to teach your teens how to:
- Find out what fee-free ATM options are available. Any decent bank or prepaid debit card offering will offer fee-free options for ATM withdrawals. Check the online help or the cardholder agreement. Good prepaid card providers will belong to a nationwide free ATM network, like MoneyPass or Allpoint. Often, the network symbol will be printed on the back of the card.
- Locate fee-free ATM machines. A decent provider will provide an online locator or even a handy mobile app to help you find the nearest fee-free ATM.
- Use fee-free ATM machines. Knowledge is one thing, applying it is another. Follow up to make sure your teen is avoiding fees.
If your teen is cavalier about paying an unnecessary 14.2% tax on withdrawn cash, you’ll want to start having some deeper, more regular conversations about money and the value of a dollar.
After all, you want your kid to be responsible with money, not ridiculous.
Like this tip? Get the next one in your inbox by subscribing here.
Want to turn these tips into action? Check out FamZoo.com.
Post a Comment