Friends just told me their 12 year old son will be a People to People student ambassador to Australia this summer. (Nominated children travel without their family to a foreign country for 2 weeks)They were thinking of sending him with different sort of money, including traveler's checks. I discouraged the traveler's checks because I thought they were not accepted much anymore.

What would you suggest to help a 12 year old keep track and spend his money on one of these trips?

Amex now has a travel funds card. It is like a credit card that has been prepaid. You can use it anywhere amex is accepted.

Can the amex card be used to withdraw funds from an ATM machine?

I would get him an ATM card - attached to a separate checking account - so if there are problems anyone's access to funds is limited. I think this gives him access to more venues than the AMEX cash card would.

Yes it can, Budman, but I assume that there would be a service charge like on credit cards.

Based on its outrageous fee for a gift card, I'm sure there is a fee attached to the Amex card mentioned.
To me, the best solution is an ATM card.

Definitely get the ATM card rather than a sponsored card, which will have associated fees. Open a joint account so you can deposit extra money if an emergency arises.

If you can't find a bank that will not charge a fee for overseas (i.e., far-out-of-network) transactions, be sure he's aware of this so he minimizes the number of transactions, rather than going daily, which many kids seem inclined to do.

Also make sure he's aware of the exchange rate, which can be especially misleading when the currencies are both called dollars!

Anyone can get a credit/ATM card if there is a credit-worthy co-signer on the application. When my kids traveled with groups overseas while in middle school, they each had a credit card. One was a regular credit card for which I co-signed. The other, since it was shorter notice, was just an additional credit card on our account in her own name, with a lower credit limit.

If he was chosen as a student ambassador he is probably a sensible/mature kid. An ATM card is by far the best solution.

But if they don't want to open a checking account for him or let him have access to their on acct, one of the prepaid travel cards -- AMEX is just one issuer. The prepaid cards are pretty silly for most adults because of the fees - but for someone w/o a checking account they make some sense.

They work in ATMs to get cash and they work as a credit card for purchases. But there are fees and currency conversion fees. but even w/ all the fees they end up cheaper than trying to cash travelers checks. And it can be topped up from home if he needs more money along the way.

Whether he takes an ATM card or a pre-paid card, he might want to take about $50-$100 in US $ travelers checks just in case he loses the card. He most likely won't need the TCs and then they can be cashed back home w/o and loss on the currency exchange.

I agree on the ATM card with a separate account. But don't forget the most important part of this. Buy him a small journal or book and have him record ALL his expenses daily, as well as keeping track of how much he takes out of the ATM each time. This is the most important learning aspect of the trip. Kids aren't learning that that piece of plastic isn't an unlimited source of money.

Patrick, when the card no longer gets you money out of the machine, a quick phone call back to Dad to add more to the checking account would be in order. Now, that's a control on the spending.

I'm having a problem with this whole discussion. Shouldn't the answers and guidence be focused on the organization that will be in charge of twelve year old Children? If this organization doesn't have the answers for children in a forign country and how money will be handled I would not send my child with them. Am I nuts or does anyone else think this is strange?

jor, I think you're thinking of something else than most of us. I'm assuming the organization is handling most of the money. I'm assuming (maybe incorrectly) that housing, transportation, meals, etc. will all be paid by the organization. I think most of us are talking about just spending money here -- and probably not a whole lot of it.

I think the family is paying several thousand dollars upfront for transportation, lodging, and entertainment/education. They did stress that the chaperones will not handle the son's spending money, or do the laundry for the son (smile)

The People to People program involves teachers or salespeople "nominating" children who can afford it. The only criteria is that your check doesn't bounce.

I also vote for the ATM card and now is a fine time to start a checking account for the child.

That said, keep in mind the fact that transactions may not be posted to the account instantly. International transactions may take days or weeks to be posted.