Christine wrote an article the other day talking about the Kardashian Kard. Apparently Kim Kardashian and her sisters decided to come out with a pre-paid debit card. I don’t know much about Kim Kardashian (I couldn’t even tell you her sisters’ names), except that she is pretty and popular.
When I first heard that they were releasing a pre-paid debit card, I hoped it was a good idea. I figured that they could use their popularity to teach people (especially teens and young adults) about personal finance.
The Kardashian Kard’s Pricing
Initial Purchase Options:
- 6 Month Payment Option (save $2.70) – $59.95
- 12 Month Payment Option (save $10.40) – $99.95
These options include the following charges:
- One-Time Card Purchase – $9.95
- Card Arrives Loaded with $5 – $5.00
- Monthly Fee – $7.95/month
So, when you first purchase this card, you can either buy a 6-month package or a 12-month package. Then after that initial period, you must pay $7.95 each month! This means that in the first two years of owning the card, you will have to pay at least $195.35. Keep it for 3 years and you’ll be out almost $300 in fees!!!
I don’t know about you, but I’m not about to pay $300 to buy a pre-paid card!
The Kardashian Kard’s Teaching Promise
There are some things about this card that could make it a good teaching tool for a young person with no credit:
- No Credit Check
- No Overdraft Fees
- It’s pre-paid, so there is an automatic limit set on the card (basically, whatever you deposit)
- No Minimum Balance
- Monitor your teen’s spending via text messages from the bank
Having a or pre-paid debit card can be a great option for teaching someone how to manage their finances. They deposit $200 (for example) into a bank account, and then use the debit card like a credit card until the account is empty.
Wait, that sounds an awful lot like a checking account to me! If you want to train your teen to manage money, have them help you create a budget, or get them a FREE checking account with a debit card. You can even have them help you set up your debt snowball!
The Kardashian Kard’s Hidden Fees
I think the best lesson that you can teach with this card is to examine everything intensely before agreeing to anything! If the $100/year price tag doesn’t scare you, maybe the fees will:
There are fees for the following:
- ATM withdrawals
- ATM Inquiries
- ATM Declines
- Point of Sale Declines
- Transfers to or from an external bank account
- Transfers to another Kardashian Kard
- Adding Money to Your Account
- Canceling Your Account (when requesting a refund by check)
- Calling Customer Service
- Paying a Bill
- Replacing Your Kardashian Kard ($25!!!)
Yes, you have to pay a fee for everything except looking at the card! Maybe that’s why the sisters put their face on the card rather than a boring logo.
KNS Financial’s Verdict on The Kardashian Kard
If your kid runs up to you asking for a Kardashian Kard, just go through all these negatives with them and teach them to evaluate options! Doing so can help them to avoid a lifetime of bad habits!
I think it would be a great idea to get your kid a checking account and work with them as they manage it. They may have a moment where they incur a fee due to their lack of self-control; but it will then give you a chance to work with them and help them avoid the same mistakes that most of us didn’t!
If these fees weren’t included with this card, then I probably wouldn’t have a problem recommending it. Maybe Kim Kardashian will help to spur more financial conversations between kids and their parents; or maybe this is just more proof that we have passed the point of no return when it comes to celebrity worship!
Either way, I cannot recommend this card to any responsible person!
- What are some ways that you are working to teach your kids about personal finance?
- Will you buy this card for yourself or your kid?
- What do you think about all of these fees?