MasterCard Using Justin Bieber To Promote Credit For Teens, page 3

Originally posted by Phage
reply to post by Iwinder

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It is much easier on the brain to swipe plastic compared to actually taking out the $15.00 you busted your ass for cutting grass in hot weather....

Maybe. Taking $15 out of my pocket never slowed me down as a kid but thinking about what was (or wasn't) going to be in my pocket next week did. I don't see the difference if you know the card isn't a money tree or if you're using cash.

As I said earlier it is an obvious training tool for later in life when you graduate to the "real plastic"

The psychology of paper money versus a piece of plastic is quite obvious in my opinion and here is a real example.

Three years ago we purchased a newer but used truck, the price was around 22k and after getting the numbers crunched we took 15 k out of our stash with us and financed the rest.

I tell you it is quite alarming when you hand over 3 stacks of 100's at 50 per stack knowing you earned it and not charging it.
We could have charged the whole purchase and not felt the pain that we did seeing all those hundreds being fondled by the dealerships dirty hands.

I hope I am making my point clear although many people would argue with me and maybe rightly so.

I can't understand why anyone in this economic climate would encourage the use of plastic be it pre paid or pay your ass later method.

One last time.......this is training for future credit card junkies and we all know what credit is......

Read any financial papers lately?

The number one rule is destroy all plastic and use cash.......
Cash hurts and plastic does not hurt until you get the bill.

Regards, Iwinder

reply to post by Iwinder

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I tell you it is quite alarming when you hand over 3 stacks of 100's at 50 per stack knowing you earned it and not charging it.

I've handed over more cash than that and was glad to. I hate carrying cash around and always have. Maybe that's because I don't think of "real" money as representing any thing different than "virtual" money.

Cash hurts and plastic does not hurt until you get the bill.

If you're talking about credit. If you have not developed money management skills.


1) A prepaid card runs dry with over spending just as a wallet does and in fact, encourages planned spending. "Hey guys! Sodas on me!" "What do you mean my card is empty?" "Um, guys, can you buy me a soda?"

2) A prepaid card provides a very easy way of tracking spending (both for the kid and the parent). Cash just sort of goes away.

3) A prepaid card if lost or stolen is replaceable. Cash isn't.

I disagree that using cash instead of a prepaid card is a better way of learning money management.

reply to post by Phage

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To each his own I guess, I suppose credit is good then........let me check out wall street and of course I should check with the balance sheet of the USA and lets see just how good it looks.

Never mind the blank pre paid for sodas how about no Pensions?
Yep I just looked and credit is the way to go, I apologize as now I see the light and that light is the creditors standing at my front door.


I have no idea how you can support credit training and that is just what this is.

I do however appreciate the debate and your posts that make me think.
In this case you are incorrect in my opinion and there you have it.
Regards, Iwinder

reply to post by Iwinder

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I suppose credit is good then

Credit is good. I find it very useful. I have no creditors at my door.

But this isn't a credit card we're talking about, is it?

I have no idea how you can support credit training and that is just what this is.

No it isn't. It's money management. Budgeting.

reply to post by DevilsApprentice

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Good thing that some countries see this sort of marketing for what is and legislate accordingly.

Really. Some countries prevent parents from getting prepaid credit cards for their kids?
Sounds really, sort of, intrusive to me.

Originally posted by Phage
reply to post by DevilsApprentice

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Good thing that some countries see this sort of marketing for what is and legislate accordingly.

Really. Some countries prevent parents from getting prepaid credit cards for their kids?
Sounds really, sort of, intrusive to me.

LoL .. I read the link in the OP.,you need to better Phage.

We call this marketing to children and legislation will ensure that it never makes it to the Print/Audio/visual media.

I think iwinders reference to Wall Street is funny,maybe Washington should use a prepaid card , you guys might not be in such a mess.

Fiscal Responsibility = BennyBucks

ETA , does bleeber mention how much his fee was.

reply to post by DevilsApprentice

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We call this marketing to children and legislation will ensure that it never makes it to the Print/Audio/visual media.

Children cannot obtain the cards. But I'm glad your media is tightly controlled otherwise your children may be able to make their parents do things without thinking about it. It's nice your government thinks they know better than the parents.

ETA , does bleeber mention how much his fee was.

I don't know. Why would he?

reply to post by Unity_99

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Who is left holding what bag?

reply to post by Phage

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The bag would be the debt. Prepaid means, they have to put the money in, usually starting at say 300, then it goes up to say 1200. And that is their money. If, they lose their job, and default, the money is taken out of the deposit, not a bill sent to parents. That is the most responsible way for an older teen, with a job, to actually gain credit, which they actually will need in our society for home payments one day, if they're good with money.

reply to post by Unity_99

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If, they lose their job, and default, the money is taken out of the deposit, not a bill sent to parents.

Why would money be taken if they lose their job? Default on what?

I don't think that prepaid cards have any effect on credit ratings.

reply to post by Phage

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Yes they do, they allow them to gradually get regular credit cards. They gain credibility with the banks. And that is why they're good for older teens. I'm not talking about the kind in the 7/11 either.

reply to post by Unity_99

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No. Not so much. The only way you build credit is by borrowing money and paying it back.

While these cards are sometimes referred to as prepaid credit cards or prepaid debit cards, they are really just prepaid cards. Because you can only spend the money you have already added to the card, prepaid cards do not represent a loan like a credit card. As a result, prepaid cards generally do not help you build your credit.

www.doughroller.net...

Originally posted by Unity_99
reply to post by Phage

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The bag would be the debt. Prepaid means, they have to put the money in, usually starting at say 300, then it goes up to say 1200. And that is their money. If, they lose their job, and default, the money is taken out of the deposit, not a bill sent to parents. That is the most responsible way for an older teen, with a job, to actually gain credit, which they actually will need in our society for home payments one day, if they're good with money.

You are confusing secured credit cards and prepaid cards. A secured credit card extends credit on revolving terms, with a limit typically equal to the amount of the security deposit. If the cardholder defaults, the deposit covers some or all of it. The cardholder is still in default, but the issuer gets their money back. A prepaid card does not extend any credit. It's a form of debit. It's impossible to default, because the cardholder isn't borrowing anything. And it will not build credit.

reply to post by davjan4

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Like smoking candy cigarettes.

I liked those sugar bombs when I was I kid. Was fun pretending to smoke.
I guess the evil plan didn't work on me though. Never was a smoker.

reply to post by Wrabbit2000

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The only problem with not using credit, is you will lack a credit history. You will need some kind of credit history if you need a loan for a car or if you're buying your first home. It really establishes whether you're a credit risk and whether banks can rely on you to pay back your loans.

It really helps teens learn financial responsibility, but parents need to explain to them the pit falls of abusing credit. Parents need to educate their teens before allowing them to establish credit. My son and daughter both got their first credit card when they were 18. My son was more responsible with his credit card and learned to pay off his balance at the end of every month. My daughter on the other hand, kept carrying a balance until I sat down with her and showed her how much money she was paying in interest. She was upset when she realized it, and paid off her balance the next time she received the bill in the mail. Sometimes you have to learn the hard way.

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