June 25, 2009
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News: AmEx Helps Manage Family Expenses
American Express (AmEx) wants to help American families find solutions in managing financial responsibilities. They recently announced a new service available to current credit card holders that would give parents the option of issuing a card to their teen or other member of the family with a set spending amount. The service would assist parents in producing a budget that they could hold all members of the family accountable to. American Express says they are responding to their credit card customers who are looking to exercise extra control of family spending. With this new program, American Express will be able to implement this restriction and parents will be able to teach children how to manage credit with the use of their own credit card.
American Express will benefit as well from the program. While parents are teaching their child at an early age how to be financially responsible by giving them their own credit card, AmEx will be forming relationships for future customer loyalty. Teens who earn responsibility during adolescence have the opportunity to form a sound foundation for a lengthy and secure credit history. This type of education will help them to effectively manage credit card use when they are off to college or leave the nest. Of course, with every good thing there is a catch; the teen might not use the card responsibly. The beauty of the plan, the parents have the final word. If the teen doesn't manage it properly, the parent can simply take the card away.
With the new service, the primary card holder has the ability to set limits, track spending, and change limits at any time. The primary card holder can also request alerts and text messages that let them know the credit card user has reached the limit. Current cardholders can learn more about the card's rewards system and additional benefits available by contacting American Express.