Teenagers are urged to “have a talk with your family about money” by Justin Bieber in new advertisement videos for SpendSmart Payments Company.
SpendSmart offers a prepaid debit card for teenagers, according to a recent Forbes article. Bieber has a 14-month contract to discuss financial literacy and encourage other teens to share their videos.
SpendSmart’s card has a MasterCard logo but alerts parents through text when purchases are made on it. Parents can choose to block specific purchases, such as those made on websites, or they can instantly lock the card if they see anything questionable.
Though profitable for Bieber, who is making $3.75 million plus royalties on the campaign, this card may not be so profitable for parents and teens, according to an article by Fox News. Various fees are charged, as is customary with prepaid debit cards.
A monthly $3.95 charge for the card adds up to about $50 per year. There are also loading, withdrawing, balance inquiry and inactivity fees.Comment on this story
“It is a good thing and part of parenting to teach kids how to manage their money responsibly, but there are different ways to go about it,” Michelle Jun, senior attorney at the Consumers Union, told FOX411’s Pop Tarts column. “This card is in the middle of the pack; it is not the cheapest card. There are definitely cards out there that are lower.”
Bieber, who earned $55 million in 2012, said his family didn’t have a lot of money when he was growing up and had to watch the money they spent. Bieber said this is where he learned to spend less than he earns and to create a budget.