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A Proven Alternative to PayPal Student Accounts That Teaches More Money Lessons

FamZoo: The Perfect PayPal Student Account Alternative

At the end of August, PayPal dropped the following message in the inbox of PayPal Student Account customers:

Effective September 29, 2016, the PayPal Student Debit MasterCard, and all related services, will be closed. This means that following this date, you or your student will be unable to use your PayPal Student Debit MasterCard. Additionally, as of this date, PayPal Student Accounts will no longer be able to be used to make purchases online or in stores. You or your student will still be able to transfer funds to your designated bank account, or to send money to either the associated parent’s PayPal account, or to another recipient, following this date. Effective November 15, 2016, all student Accounts will be closed, and any remaining funds in them will be transferred to the associated parent’s PayPal account.

That means parents with kids under 18 are out of luck completely. And those with kids 18 and over will no longer enjoy a centralized place to manage accounts, transfer funds, and view transactions across the family.

One disappointed mom summed up the PayPal Student Account value proposition nicely in a Reddit post when she lamented:


21 Back To School Tips For Raising Money Savvy Kids At Each Educational Stage

Back To School Boys

Personal finance still isn’t a significant part of the curriculum in most schools. Even if it was, you’d want to remain involved. After all, discussions about money are also discussions about values.

Whether your kid is headed back to elementary school, middle school, high school, college, or even back to your guest room, here are 21 novel ideas for filling the financial education gap:


Motivate Your Kid To Work With A Money-You-Could-Have-Earned Account

“Opportunity is missed by most people because it is dressed in overalls and looks like work.”
~Thomas Edison

Is your child passing up opportunities to earn a few extra bucks around the house?

You: “I’ve put together a list of odd jobs above and beyond your unpaid chores. The amount I’ll pay you is next to each one. See? Like $4 to wash my car. Whaddya say?”

Your kid: “Nah, I’ll pass. Doesn’t seem worth it.”

Sounds like it’s time to set up a Money-You-Could-Have-Earned account. It’s a way to teach your kid that a few dollars here and there add up to significant dollars over time — especially when you factor in forgone compound interest.

Here’s how the system works in FamZoo (but you could do the same thing manually with a spreadsheet or even a notebook):