Can you set up an iTunes account w/out a credit card?

Ok, here's the deal... I'm buying a 10 year old an iPod Touch for Christmas.  She needs to have her own iTunes account for purchasing stuff (apps, music, etc.) Is it possible to set up an iTunes account WITHOUT adding a credit card? I need her to operate completely off of iTunes gift cards so that I can 1) controll how much she spends, 2) avoid having to either enter my password every time she wants to buy a Justin Bieber song with my debit card, and 3) avoid random charges popping up on my credit card whenever she does purchase said Bieber songs by letting her know the password in an attempt to accomplish task #2... 
Is there a way to set up an iTunes account without entering billing information? So that the account operates on 100% iTunes credit?  Is there a parental setting to block access to the card used to set up the account? With all the kids with iPods there has GOT to be a way to set this up... or else there are probably a LOT of broke parents chasing after them.... 

Glad this helped! You might want to check this article on Understanding Restrictions on the iPad: http://support.apple.com/kb/HT4213.
Al

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