TransCard and FamZoo will jointly develop United Family Banking, an educational prepaid card designed for families.
Users would pay one monthly fee for multiple prepaid cards used collectively by different family members.
The cards are linked together and accessed online through FamZoo’s family finance software, which is designed to help parents teach children healthy spending habits.
TransCard sells prepaid products to financial institutions, while FamZoo’s software includes a mix of educational and interactive programs such as a “Virtual Family Bank” to manage their children’s earnings, spending, saving, and charitable giving using IOU accounts or optional prepaid card accounts.
Through the partnership, parents can set up automated transfers from parent to child cards for regular allowance or other instances. Whenever a parent card balance is too low to make a transfer, IOUs are automatically tracked and repaid the next time the parent card is loaded. Parents with working teens can set up automatic deposit to the teen’s card.
Children can monitor their own spending through individual online access while parents retain visibility and control through a shared online dashboard. Parents have the option to set up “child bill pay” so kids can automatically reimburse parents for a portion of shared family expenses like cell phone charges or online gaming subscriptions.
Parents and kids can also develop budgets together. Children determine savings goals, make savings plans, and track progress. Parents set up automatic savings plans by directing a portion of earnings to a separate saving card.
Family members can load the cards for free using direct deposit, move money between linked cards with no fees, pay bills and access cash at ATMs. Balances and transfers can also be accessed online and via mobile devices.
Other companies targeting parents and children with educational materials and spend controls include SpendSmart, which just changed its name name from BillMyParents. SpendSmart, which Justin Bieber promotes, sells a product that gives parents control over their children’s spending.