Allow Card of America has launched a pre-paid MasterCard specifically designed for older children and teenagers that allows parents to track and control their spending.
The pre-paid debit card is aimed at young people between the ages of 10 to 19. Parents can load money on to The Allow Card and track their children's spending via an online portal.
The Web site features over 35 controls, allowing parents to set parameters for their children's spending. The site also allows parents to lock out specific merchant categories so teens can't spend money at "undesired" locations.
The portal also features financial lessons and interactive games designed to help young people to learn how to manage their allowance and finances.
Marla Beans, Allow Card of America's CEO, says studies have shown that young people are inadequately prepared for financial responsibilities once they leave home.
"That's why we developed our Web site as part of the overall Allow Card programme," she says. "It's a place where both parents and teens can check the status of accounts, as well as a site where teens can learn about finances. This is an excellent way for parents, teens and preteens to develop a sense of trust as they talk about money situations."
Visa USA launched its own re-loadable payment card for children and teenagers in 2000. The Visa Buxx card is offered by a number of banks including Bank of America, Wachovia and US Bank.