MONEY-SMART KIDS
Cell Phones for Kids
by Janet Bodnar

My friend's son, who is 10, is adamant about getting a cell phone. His mother is uncertain, while I contend that handing a kid a cell phone teaches fiscal irresponsibility. What is your opinion?

I'm with you -- and not just because of fiscal responsibility. You have described a situation in which a 10-year-old is "adamant" and his mother "uncertain" -- precisely the opposite of the way a parent-child relationship should work. Mom is the grown-up here, and she should be putting her foot down. Kids can have input, but parents should have the final say.

That applies to all kinds of parent-child issues, financial and otherwise.

As for having a cell phone, a 10-year-old should never demand one and rarely needs one unless safety is an issue. For example, Mom may want to be able to contact her son after school to check on child-care arrangements. But that should be her decision, not his.

If you feel your child needs a cell phone, pay only for basic service; anything beyond that should be the child's responsibility. In our house, for example, our 16-year-old pays for talk time and text messages beyond the basic fee, plus roaming charges if he calls friends back home while we're away. Obviously, an agreement like that only works if a child is old enough to have income (unlikely for a 10-year-old).

To hold down cell-phone costs for kids, consider signing up for a prepaid service. Two plans worth looking at are Virgin Mobile and TracFone. For a comparison of prepaid plans, visit Myrateplan.com.