Prepaid Credit Cards for Teens to Teach Them Financial Responsibility
Prepaid credit cards for teens are a great way to teach these free-spirited folks some financial responsibility. Teenagers normally don’t like any kind of restrictions or responsibility and want to live their lives on their own terms.They love to spend their pocket-money or allowances as and when they like. This is all good as long as their spending habits don’t go out of hands and run them into debt. Especially the availability of a credit card can make teenagers delude themselves into thinking that they can freely spend as much as they want now and conveniently pay for it later. This can cause strife between them and their parents. A prepaid credit card can be the solution these worried parents are desperately looking for.
It makes your teenager financially responsible
One of the best ways to teach your teenage boy or girl how to behave responsibly about money is to get a prepaid credit card for them. This is a nice little trick that works wonders in the case of young people by making them aware of their spending habits. It also restricts their spending and they cannot spend money carelessly on needless on things without thinking whether they and their parents can actually afford that. This also helps their parents to have control over how much their kids will be spending as they can control the amount that goes into the card.
How the prepaid card works
Although the prepaid credit card is called by that name, technically, it is another debit card as you have to load the card first with money before you can make any financial transaction. So whenever your teenager wants to use their credit card for any purchase, they first need to check if there is balance left on their card. They have to top-up their prepaid card on a monthly basis in order to have sufficient balance. This teaches them how to manage their finances wisely. The learn to budget their money, their income and expenses and are better able to take financial decisions based on what is important and not based on impulsive spending habits.
Advantages of a prepaid credit card
There are many advantages of having a prepaid card for your teenage kids. They are as follows:
can get a prepaid card as there is no need for any credit tests to get
your teen cannot spend beyond what is already put into the card, there is
no possibility of overspending.
the card is lost or stolen, only the outstanding balance amount will be
lost. However, there is the facility of blocking such a card so that any
other person cannot misuse them.
Prepaid credit cards for teens are a very useful and economical way of managing the money of your teenager. Not only will it teach them how to spend sensibly, but will also give you a great peace of mind from the worry created by their unrestricted and impulsive spending.Getting the card is easy and the benefits are many.