Most parents would agree that kids these days are more independent then ever, the reasons for which are disputable but the internet and the times we live in probably have a lot to do with it. However one thing that many children and even young adults out there still lack is a good understanding of responsible spending.

A great way to teach your kids (when I say kids, I really mean teenagers, you probably don’t want your 5 year old running around with a credit card) how to spend responsibly, and keep track of what they are spending money on at the same time is by getting them a Prepaid credit card.

Getting your kids a Prepaid credit card is great idea because:

1. Unlike a normal credit card, your kids can only spend up to a certain limit, which you set. This can teach kids how to maintain a balanced budget, which is extremely important, especially later in life when they have a lot of credit available to them.

2. You can easily keep track of how much money your kids are spending and exactly what they are spending the money on. No more money for food that’s really going to buy video games etc..

3. Although this won’t help your kids credit score, it won’t negatively effect it either. This is good because if they make a mistake and spend too much, the purchases weren’t really on “credit” and there is no money to pay back. This prevents them from getting into trouble with the card companies, however not so much with you.

If you’re already giving your kids a weekly or monthly allowance, a prepaid credit card is something you definitely want to consider, especially if they are in their mid teens. This way, before they go of to college and get bombarded with credit card offers, they understand the risks, possibly implications, and responsibilities required when dealing with credit.

Current by Discover is the best prepaid credit / debit card out there for kids and parents alike. With this card you can:

• Add money easily to your teen card and set spending limits and e-mail or text message activity alerts.
• Withdraw cash at ATMs and temporarily disable the teen card if you lose it.
• Track purchases and access exclusive discounts online.

Another good card is the Wired Plastic Prepaid Visa because it has no bounced check, NSF and overdraft charges and allows you to “recharge” it at over 100,000 retail locations worldwide. You can also sign up to get free email and mobile alerts, so you know when the card is being used.

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