PayPal has announced the launch of the Student Account - calling it "a fast and secure way for U.S. teens to shop online using PayPal and in stores with the Student Card, while providing parents with a variety of monitoring capabilities."
According to PayPal, "the Student Account eliminates 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. Parents can establish up to four PayPal sub-accounts for their teens, transferring funds into those accounts when needed, on a one-time or recurring basis."
Since the parents’ and teens’ accounts are linked, parents have full visibility into their teen’s account balance, spending habits and budgeting skills. Parents don’t have to worry about credit impact because the Student Account only allows the teen to spend what is available in their account.
“As a parent I understand the challenge and stress of raising kids that are financially responsible,” says Don Fotsch, PayPal vice president of customer experience and design and parent of six, ranging in age from 8 to 19. “With the Student Account, I know I can give my kids a level of financial independence while remaining on top of my kids’ spending.”
The Student Account offers many features to help teens learn by doing – with their parents’ guidance:
- 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.
The Student Account is currently available in the United States. To learn more or sign up, please go to https://www.paypal.com/StudentAccounts.