Kardashian Debit Kard – Ripoff or Teen Teaching Tool?

by Khaleef Crumbley on November 16, 2010

in Banking,Credit Cards,Debt Management,Personal Finance

Kardashian kard

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!

Reader Questions:

  1. What are some ways that you are working to teach your kids about personal finance?
  2. Will you buy this card for yourself or your kid?
  3. What do you think about all of these fees?

© 2010 – 2011, Khaleef Crumbley. All rights reserved.

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