It seems like every time I turn around, one of my kids is asking for money, making me feel at times like I’m a walking, talking ATM. Aside from the fact that I don’t do the Robot very well, with the advent of debits cards, one of the biggest problems with this is that I rarely carry cash. So, most of the time, I have to drive somewhere just to get them small amounts of money—$10.00 to $20.00– spending time, gas and cash for withdrawal fees. At least this is what I used to do until I discovered PayPal Student Accounts, a simply ingenious concept!
My quest began a few months ago as I started exploring options for my then 14 year old. I wanted him to earn an allowance by cleaning the house and doing other chores, while at the same time learn how to manage money. I checked into some of the options out there that allow teens to have debit cards, but it seemed the risks were greater than the rewards. I didn’t want him to even possibly become overdrawn and it didn’t make sense to pay a monthly service fee for an account with such minimal deposits. Before learning about Student Accounts with PayPal, I set him up with a Wal-Mart MoneyCard. This appeared to be a better option than many others, but still had its downfalls, the biggest being that you have to pay a fee to load money on the card. The only way to avoid paying a reload fee is to set up a standard transfer, a process which can take 1-3 business days, set up direct deposits, or cash a paycheck at Wal-mart. While the latter helps you avoid the reload fee, you end up paying a check cashing fee and there’s also a monthly service fee. All in all, even the MoneyCard ended up being more trouble than it was worth. Then, I discovered PayPal Student Accounts.
I’ve had my own PayPal account for several years and use it regularly to make online purchases. However, if you’re unfamiliar with PayPal, you should know there are many benefits in having an account. One benefit is it allows one to make purchases without having to share financial information with every merchant you do business with. It’s also very convenient because your payment methods are saved on PayPal so there’s no need to pull out your credit or debit card—pretty handy if you don’t have your cards on you. With PayPal you can send money and request money in addition to using it to pay for purchases.
Since both of my kids love buying things online on sites like Amazon, they were constantly asking me if they could use one of my credit cards. While I don’t mind using a credit card on their behalf, if it’s their money and the charge isn’t recurring, it’s still a pain and I don’t always feel comfortable doing it. The PayPal Student Account solves this problem by allowing teens to have a PayPal account set up in their name along with their very own PayPal Visa Debit Card.
I believe that I discovered the Student Account feature on PayPal by accident, but after learning about it, it didn’t take me long to cancel the MoneyCard. Signing up is super easy too. Here’s how:
1. Go to www.paypal.com.
2. If you don’t already have an account, sign up for one.
3. Once your account is set up, from the account overview add a Student Account. The only information required is your teen’s email address, a password, your teen’s name and date of birth. *There’s a minimum age requirement of 13.
4. Last, you click “agree and continue.” The set up takes a few weeks, but once approved, PayPal will send a debit card in your teen’s name through the mail.
There are a few ways you can deposit money into a PayPal account, but my preference is automatic transfers from my bank. The initial set up for this can take 7-10 days, but once completed, money transfers are immediate. I transfer to my PayPal balance first and from there to my son’s Student Account where he can use the money to make purchases online, as well as buy lunch at Taco Bell, or pay for his ticket at the movies. Now, there’s no more driving to the bank or looking for an ATM or paying withdrawal fees. And I can transfer money to his account any time of day or night as long as I have an internet connection and money in the bank.
According to the PayPal website, “There are no fees to open, fund or maintain a PayPal Student Account. If your teen loses their Student Card, we’ll replace it free of charge. Lastly, there are no idle-account fees or fees for closing a Student Account.” Charges are assessed for ATM withdrawals, bank withdrawals where a signature is required, foreign purchases (1%), currency exchange, *sending/receiving money. *Sending money to friends and family is free and receiving money is free when the sender uses their PayPal balance or bank account. And while there’s normally a fee assessed when you receive money after sending a money request, it’s free to the student when the money is sent by the parent who set up the Student Account.
With the PayPal Student Account, I’m teaching my son how to manage money while being able to maintain parental control by monitoring his spending. And I can tell you it was very satisfying to me a few weeks ago when the kids were away from home and my son texted me about a book we’d been looking for. I was able to send him money right away, almost as easily as if I’d been standing beside him and handed him cash. While today, it’s mostly books, video games, and for my daughter the occasional turquoise colored wig–it’s an anime thing– sometime in the near future it may end up being gas or money to replace a tire that’s gotten one of them stranded on the side of the road.
In any case, I think PayPal Student Accounts are a win-win, don’t you?
Obsessively Yours,
Jane
Jane's Obsessions 