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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:
- Unlike a normal credit card, your kids can only spend up to a certain limit - and you set that limit. 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.
- 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.
- Although this won't help your kids credit score, it won't negatively affect 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. Though they still may end in trouble 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, possible implications, and responsibilities required when dealing with credit.
What to Look for in Pre-Paid Cards
We recommend looking for a pre-paid card that has the following features:
- Look for low fees. A lot of cards want to hit you with activation fees, monthly fees, re-load fees, ATM fees, etc.
- Online Access. You want to be able to track purchases and other activity online. Plus, you will want the ability to add money easily to your teen card, set spending limits, and get e-mail or text message activity alerts.
Looking for a Prepaid Credit Card?
Start your search by browsing the online marketplace at CreditSoup®.