SAN FRANCISCO, CA - March 1, 2007 - Visa USA today introduced three new web-based allowance calculators designed to help parents get a better grip on their kids’ spending habits while simultaneously giving their children a solid money management foundation. Available for free at www.practicalmoneyskills.com/allowance, these calculators help parents set appropriate allowances for kids of all ages based on the following factors: what parents themselves received for an allowance as children, needs-based expenses versus discretionary spending, and saving for a goal.

"Parents today struggle with the question of how much of an allowance they give their children. No one wants to be out of step with other families by either being stingy or spoiling their kids," said Jason Alderman, director of Visa USA's financial education programs. "Visa’s new allowance calculators can help parents set an appropriate amount to give children at any age."

Allowances can also be an opportunity for parents to teach their children about responsible money management. A recent Visa survey of credit and debit cardholders found that less than 50 percent of respondents learned how to manage money from their parents and 41 percent of those surveyed said they learned the hard way or were self-taught.

Each allowance calculator gives parents solutions to varying allowance dilemmas. The Allowance Comparison Calculator evaluates the allowance parents themselves received as children in order to set a comparable amount today, factoring in inflation. The Wants vs. Needs Calculator aids parents trying to determine those items that are necessities (i.e. school lunches, clothes, transportation) and those items that are nice to havesindulgences (i.e. toys, music, snacks). The Saving for a Goal Calculator helps children understand the power of earning interest in a savings account by showing how much needs to be saved to buy a particular item.

Accompanying each of these calculators are some helpful allowance tips for parents, including the following:

• Children can begin receiving allowances as soon as they can understand the value of money – as early as three-years old.
• Involve your children in budgeting for their own expenses at an early age.
• The goal of an allowance should be to educate kids about how to handle money wisely, not reinforce good behavior or tied to household chores.
• Use an allowance to teach important life lessons. Consider having them set aside 10% for charity.
• Work on setting a good example with your own spending behavior. Remember kids’ financial habits, both good and bad, often start based on their observations within the home.

"When it comes to teaching children about important life lessons about money, an allowance is a great way to help them budget, save and invest in their future," added Alderman.

Parents can access the allowance calculators in the "At Home" section of Practical Money Skills for Life at www.practicalmoneyskills.com/allowance. Practical Money Skills for Life is a free, award-winning, teacher-tested and teacher-approved financial education program that is available in English, Spanish and Chinese. The website is divided into three comprehensive sections, complete with money management resources and lesson plans tailored for use at home, in the classroom or at work. It also contains an array of tips to help prepare for life changing financial events, from planning a baby to saving for college and retirement, as well as a number of other budget calculators and interactive games. Visa also runs What’s My Score, a leading higher education consumer awareness program. The website guides consumers through the ABC’s of a FICO credit score, from factors that can lower a score to ways on improving it, at no charge.

About Visa USA
Visa USA is the nation’s leading payment brand and largest payment system, enabling banks to provide their consumers and business customers with a wide variety of payment alternatives tailored to meet their evolving needs. Visa USA is committed to increasing the choice, convenience, acceptance and security of Visa payments for all stakeholders in the payment system - members, cardholders and merchants. Through its 13,432 member financial institutions, more than 510 million Visa-branded cards have been issued to cardholders in the United States. Last year, U.S.-based financial institutions relied on Visa’s processing system, VisaNet, to facilitate $1.6 trillion in transactions with unparalleled reliability.

Worldwide, cardholders in more than 150 countries carry more than 1 billion Visa-branded cards, accounting for more than $3 trillion in annual transaction volume

Visa offers a trusted, reliable and convenient way to access and mobilize financial resources - anytime, anywhere, anyway.

For more information or to schedule an interview with a Visa USA spokesperson, please contact Romney Willson at (703) 683-5004 ext. 118, or rwillson@crcpublicrelations.com.

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