EDITOR'S NOTE: THIS CARD IS NO LONGER AVAILABLE. Click here for the latest offers from Discover. Discover Card credit card has developed a new kind of teen debit card called The Current Card. Parents set up the Discover Current card account, choose parental controls, and add money to the prepaid card from various sources.
Mike Boush, VP of Marketing Strategy and New Initiatives at Discover Financial Services, offered insight into this new teen debit card idea.
Can you give me some background information on this teen credit card such as how it came about?
Current by Discover Card is an innovative debit card for teens that helps them track and manage their spending while ensuring their money is safe. We developed the Current Card as part of our company mission to help consumers spend smarter and save more, and because we saw a unique opportunity to help teens develop good financial management skills. Learning these skills at an early age is more important than ever in today's challenging economic environment.
What benefits does the Discover Current card offer?
Unlike cash, Current Card gives teens a better way to manage their spending while developing smart money management skills. The Current Card model eliminates the risk of overdraft fees and helps protect teens from going into debt because they can't spend more than the amount on the card. Teens can choose from seven unique card designs and receive valuable members-only in-store coupons and online discounts at hundreds of popular merchants.
Also, parents can deposit funds directly onto their teen's Current by Discover Card at no cost from their credit card, bank account, or through recurring deposits. Spending activity is easy for parents to track online at the Current Account Center and through e-mail and text message alerts. Parents also have the reassurance of being able to set daily, weekly, or monthly spending limits and block certain merchant categories that may be inappropriate for teens.
A recent report by Sallie Mae suggests that more students are charging books and tuition on credit cards. Can you comment on this with reference to the new prepaid card for teens?
It's important to note that Current by Discover Card is a debit card, not a credit card. This means that teens cannot spend more than what's been loaded onto the Current Card bank account.
Do you have any other comments you would like to add?
By introducing teens to Current Card, Discover is offering them a way to learn about managing money, with guidance and input from their parents, before they start to use credit. The Current Card is a great option for parents who want to teach teens financial responsibility and gain peace of mind with knowing when and where their children spend money. At the same time, it's perfect for teens who want to establish sound money management skills and to ensure they will always have money when they need it.