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Comment by justhw | Hacker News Reader

Tenth graders are customers without credit cards. How are snapchat and all the free apps generating revenue? ads?

Granted, I'm in 11th grade, but I and most others I know have a non-trivial amount of cash. (Though, since I have no income for 75% of the year, I try not to spend anything.)

Most people in my cohort aren't exactly destitute. Certainly, a business could make money selling to teenagers. They just couldn't achieve the volume that something like Facebook has.

Generally, people like free things and have a disregard for their privacy, (myself included) which is why ads are far more lucrative.

HOWEVER: This observation is not necessarily reflective of the generation at large, so I would take this with a grain of salt.

When I was in tenth grade I'd just use my dad's credit card.

They can buy itunes gift cards from stores and do in app purchases ;)

They have credit /debit cards linked to parent accounts.

Don't they have debit cards in their own name?

Pretty hard to do if you're under 18, banks want a legally responsible person to own the account.

Debit cards in theory do not allow any debt, thus there's not so much of a problem allowing under 18s to have them.

See this UK account for 11 to 18 year olds which allows a debit card.

(http://www.rbs.co.uk/personal/current-accounts/g1/young/revo...)

HSBC give you a savings account when you're seven, and add a current account when you're 11, with a VISA debit card.

(https://www.hsbc.co.uk/1/2/current-accounts/under-18-bank-ac...)

A lot of US banks still want 18-year olds or a parental guarantee.

US banks love overage fees (making credit card interest rates an amazing bargain). Plus there is the liability of checks/ACH which can cause overdrafts.

I think debit cards are easy. I had one around 15 and my sister even younger. It was my account, but it was linked to my mom's so she should could transfer money into it.

I am under 18, and my bank allows minors to open an account independently. It's pretty common in the US.

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