DALLAS, Texas -
PAYJr., Inc., CEO David Jones said around four years ago, his company was searching for a method to teach kids how to spend their money wisely online. The first step was an online website and account that allows parents to assign specific chores to their children, how often it gets done and how much the kids will be paid for completion. Money is then transferred from the parents' accounts to their children via a pre-paid card. The allowance service also sends email messages and instant messages to kids when their parents assign them a new task. The service is free to members and parents can track their kids' accounts and spending at will.
"It's also a great convenience. It takes allowances into the electronic age," Jones said.
Launched in April 2006, Jones called PAYJr an online allowance system with attached pre-paid card as an option for kids when they become teenagers. Kids as young as seven years can join PAYJr., and at age 13 can choose to get a pre-paid card to buy things online.
Presently, pre-paid cards with various designs or sports teams are being created so kids can customize their own cards. Jones said PAYjr. Inc. had recently signed an agreement with the Dallas Stars hockey team to use their colors and logo for a card. The new pre-paid card program has an implementation fee based on CU assets and a per-user fee based on card activity, usually in the range of $1 per user per month. Jones said the revenue from interchange fees should be adequate to pay for the establishment and maintenance of a CU's accounts.
With an average age of 12 years old, some 1,000 kids are using PAYJr., which represents 20,000 families, Jones said, noting that credit unions are adopting the online allowance service faster than other financial institutions.
