Parents now can assign money to their kids on a PayPal MasterCard card

Online payment system PayPal announced that it has introduced a new service known as the Student Account which provides US teens with a convenient and quick option to pay for their purchases while shopping online and in stores. The service comes to the use of a special PayPal branded MasterCard debit card that is linked to parents’ PayPal account.

The PayPal’s objective was to eliminate “the hassle of everyday money exchange between parents and teens, while giving teens the chance to learn good spending habits through the experience of being responsible for their own money.” Adults can create up to 4 PayPal accounts for their children and then transfer funds to those accounts when necessary.

As long as both parents’ and kids’ accounts are linked adults have full control of how money are spent. Parents will not be shocked one day by a huge balance on their credit card as the Student Account only allows the teen to spend what is available in their account.

Thus, the Student Account has the following features:

• Permissions: Parents can set permissions for individual teens to designate how the account can be used. They can also require that their approval is required when a teen receives money in the account. 
• Mobile Features: Parents can use their mobile phones to check account balances and transfer money to their teens’ account. Additionally, teens can check their account balance and easily request money from their parents via simple text message. 
• Alerts: Parents can receive alerts notifying them when their teens’ payments exceed a certain amount or when a specified low balance is reached. 
• Built-in security: As with all PayPal accounts, the Student Account allows teens to shop online without exposing any financial information.