TD Bank is launching a new prepaid card to let parents monitor their teens' spending while easing young adults into financial independence.
The new reloadable Visa card, called TD Go, can be funded by direct deposit or by linking another debit or credit card.
Adults can monitor teens' spending online and set up email and text alerts to flag low balances and questionable purchases.
"The development of smart spending habits is a journey and many parents want to offer teens a gradual path to increasing fiscal freedom," TD Bank's head of retail deposit payments Tami Farrow said in a news release Wednesday. "With the launch of the TD Go Card, TD Bank is offering parents a convenient and safe environment to get money to their teens and an easy way to monitor spending."
TD Bank in Cherry Hill, N.J., a unit of Toronto-based TD Bank Group, joins several other financial services companies in offering prepaid cards designed for teens. Other providers offering teen cards include Visa (NYSE:V), American Express (AXP) and BB&T (BBT). Oink, formerly Virtual Piggy, is adapting its teen online payment system for use in stores through a mobile app.