The UPside Visa prepaid debit card claims that it promotes financial independence for teenagers. "Now buy online without asking your parents," it promises. That alone would terrify many a parent, but UPside offers this reassurance: Teens can learn about managing money at an educational Web site, spendresponsibly.com. And in case the lessons are slow to sink in, parents can track their kids' purchases and receive alerts if they go overboard.


The real deal

The UPside card isn't the only one aimed at young people. Visa Buxx, which is issued by such banks as Wachovia and US Bank, along with the Allow Card and PAYjr, are all reloadable debit cards that promote a financial-learning component. They are not credit cards, so there's no risk of your child going deep into debt.

The cards have hefty activation, maintenance, and dormancy fees, all typical of prepaid cards. The fee to activate the Basic UPside card is $7.95, while Allow Card's fee is $19.95 and PAYjr's is $4.95. UPside charges 99 cents per month for access, the Allow Card, $3.50, and PAYjr, $2.95. You might also be smacked with overdraft or decline charges if your child tries to make a purchase beyond the value remaining on the card.

Aside from high overdraft fees ($10 to $20), Visa Buxx may be the best deal if you have an account at a participating bank because reloading or ATM fees may be waived. If you don't have an account at one of the banks, fees are just as steep as the other cards, and the online financial lessons are skimpier.

Some cards offer additional money-management tools. PAYjr has a feature that lets parents pay an allowance for chores. The UPside card offers cash back or rewards points when the card is reloaded or purchases are made. Cardholders can use the points to shop at an online "mall." Of course, rewarding kids for spending may promote the opposite of fiscal discipline. "As enticing as rewards cards are, giving a prepaid card to a teen and saying you'll get a reward for charging up your card--that's a red flag there," says Curtis Arnold, the founder of CardRatings.com, which reviews credit cards.


The bottom line

These cards are no substitute for the financial guidance parents should give their kids. If your child is financially responsible, you could set up a joint or secured credit card and avoid the monthly fees of prepaid cards. But the cards can be helpful when your child starts college. "It's better for a student to be given a prepaid card than go off to college and get hit by a barrage of credit-card offers," says Arnold.