BillMyParents, Inc. (OTCQB: BMPI) (OTCBB: BMPI), the leader in teen spending solutions, provides modern families with innovative products and services that promote responsible teen spending habits that last. Its flagship product, the BillMyParents SpendSmart MasterCard card, is a reloadable prepaid card for teens 13+. BillMyParents SpendSmart Card is the only instantly track-able, reloadable MasterCard prepaid card that lets parents and teens track spending in real time. BillMyParents provides parents with a modern way to help teach their teens financial responsibility, when it counts.
According to a recent article in The Huffington Post, changes in regulations and the economy have Americans increasingly shut out of traditional bank accounts and turning to prepaid debit cards instead.
Reporter Catherine New writes that "use of prepaid cards among all Americans climbed to 13 percent in 2011 from 11 percent in 2010, according to a new report from Javelin Strategy & Research, a market research group. The number of people with traditional checking accounts, savings accounts, credit or debit cards declined by 11 percentage points since 2010."
As report author Beth Robertson – who is also the director of payments research at Javelin – explained, "The economy and changes in regulations have really put pressure on checking accounts. It has been changing the nature of those products to a certain extent and restricting ownership."
Teenagers especially have felt the brunt of the changes. The CARD Act, which took effect in 2010, "set an age limit on credit cards, unless the card holder is self-supporting or has a cosigner. Free checking accounts - a typical option for a first-time account holders - have also become more rare in the last few years." Read the full article at www.huffingtonpost.com.
In the face of these new restrictions, teenagers and twenty-somethings must seek credit card alternatives that still allow them to maintain the financial freedom they want. BillMyParents' SpendSmart card is a strong option in this space. Features of the card include the ability to instantly lock, unlock and reload the card at any time; text alerts to parents and teens showing real-time transaction details with each purchase; and the freedom and security of a MasterCard prepaid card without the risk of overdrafts, accruing debt or affecting credit scores. Read more at billmyparents.com.