Justin Bieber Dispenses Financial Advice to Teens Via SpendSmart Debit Card Videos
Remember when Justin Bieber signed a deal to back a predatory debit card loaded with fees for a company called BillMyParents? Initial reports made it seem as though the card treated parents like cash machines and let kids spend disposable income at their whim. Well, the company has been renamed SpendSmart Payments Company and the Biebs, who is pulling in a cool $3.75 million as an endorser, is sharing financial tips to educate Beliebers who use the prepaid card on good financial habits.
Kudos on that excellent marketing strategy, since the Biebs is one rich teenager and has a lot of money to manage. It makes the card seem like a tool and a resource to teach kids and Beliebers how to manage their paper under the guidance of their parents.
In the first Real Talk spot, called ‘Life Lessons,’ Biebs nods to his modest upbringing. “You know when I was a kid, we didn’t have a lot of money, so me and my family had to watch the money that we spent,” he said. He and mom Pattie Mallette often visited a local food bank in their native Canada, so things really were tight when he was growing up.
The Biebs suggests that fans make budgets and shared a simple rule.
“I learned if you have $100 or $100 million — if you spend more than you have, you’re going to go broke,” he said.
“Managing your money is important,” he continued. “And there’s a great company that can help you do that called SpendSmart.”
Biebs is contracted to SpendSmart for 14 months, and will make potential royalties based on the growth of the active cards being used, according to Yahoo! Finance.
The card is not a free-for-all for teens to run amok and make extravagant purchases.
When a purchase is made, parents are alerted via texts or a smartphone app. Parents can pre-empt web purchases and monitor spending in real time. SpendSmart is meant to be a responsible company aimed at teaching teens the right way to spend. There are fees associated with the card, so parents should educate themselves first about the costs of owning and operating such a card.