I can't believe USAA discontinued the Prepaid Spending Card!! My two eldest children have them and their little sister has been waiting to get one. She is finally old enough, according to our household rules, and now USAA doesn't offer them! Looking at this page, I see people have been asking for the return of this service for over a year, and USAA has chosen to ignore their members once again. I've already left USAA for insurance, I guess it's time to shop around for a bank too. USAA just isn't the company it used to be.
Unfortunately, you are right, USAA no longer offers prepaid spending cards. As an alternative, a youth spending account is available; parent can monitoring spending and provide funds via funds transfer. https://www.usaa.com/inet/pages/bank_youth
Thank you for posting.