Amazon has launched a program allowing kids ages 13 through 17 to make purchases all by themselves on the retail giant’s website, and charge those purchases to their parents’ accounts.
Parents have options of how to approve them and how to be notified when purchases are being made.
Brandon Hayes, a financial analyst with oXYgen Financial, which specializes in finances involving Gen X and Gen Y, thinks there are up sides to the idea, and possible trouble. He says the plan has the opportunity to teach kids independence and will help parents be more efficient managing where their money is going. “I think it’s good that Amazon will have data on family spending habits so they can market products better and make items easier to choose from.”
The downside he says is living in a cashless society and not teaching kids what a dollar is, how to earn it, how to save it, and how to manage it effectively. “My fear is they won’t even be able to fathom what a dollar is,” he tells Newsradio 740 KTRH. Swipe, touch and it shows up on your doorstep quickly might not be the best model for teaching responsible financial management. “More importantly, if they don’t value a dollar and what their parents worked hard for to earn that dollar, will they become in debt one day because they don’t understand personal finances? It’s almost like fake money.”
Parents will have up to 30 minutes to cancel an order.