Are prepaid debit card for kids an good idea? Well, it will all depend on how the card is going to be utilized. If utilized wisely, it can be an enormous convenience to both parents and their kids.
Once children get to a certain age level, they would begin exercising their freedom. And prepaid debit cards for kids is a great start. Kids would rather choose their friends to accompany them to the mall instead of their parents and before you know it, they would learn how to drive a car and would soon ask for money to buy gas, clothes and other teen-related needs. That is when a prepaid debit card for kids may be a good option for you. Yes, you have control!
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for prepaid debit cards for teenagers and kids:
Visa Prepaid Card. **
As children get older, things do become more expensive for them, so the pocket change which used to be enough for their necessities will no longer suffice. And that is why a Prepaid debit card for kids is a great choice.
Now should parents give a prepaid debit card to their kids? It’s actually a great idea. A prepaid debit card for kids are like those gift cards given out by major retail stores except that it is not just restricted to a particular shop. Parents can simply apply a prepaid debit card in their kid’s name and load the account with money to have it activated. Their kids can then use the card in shops, bookstores, restaurants or any place where a MasterCard prepaid debit card or Visa is honored.
When the prepaid debit card is utilized to purchase something, the amount is automatically deducted from the funds of the card. Kids love prepaid debit cards because it makes them feel older and provides a sense of responsibility. Parents can add more funds to their kid’s prepaid debit card once the balance on the card gets low using their credit card or checking account.
A PrePaid Debit Card for Kids – The Advantages
- A prepaid debit card for kids a lot safer compared to cash. In case your kid loses the card or it gets stolen, all you need to do is call the card issuer and have the account blocked. You can have the outstanding balance transferred to the new card.
- Prepaid debit cards for kids are more widely accepted as opposed to traditional retailers’ gift cards. Also, it can be utilized in any place where MasterCard or Visa is honored.
- Kids can use their prepaid debit card to purchase items online without the need to use the credit cards of their parents.
- A prepaid debit card for kids is safer than a traditional credit or check card because your kid’s spending is limited based on the card’s loaded amount. Moreover, it does not have high interest rates or late charges.
A PrePaid Debit Card for Kids – The Disadvantages
- A number of issuing banks would charge an activation fee as well as monthly card usage fee and/or fees to put funds on the prepaid debit card for kids. That will depend on the issuer, though.
- You will be charged an associated fee if you use the prepaid debit card for kids to withdraw money from an ATM. Kids should be aware that by doing this, it will decrease the remaining balance on their card. It would be a much better idea to simply give your kid cash rather than allowing him/her to withdraw funds at the ATM.
- Usually, the funds would only be available after a few days if you load the card via a bank wire transfer process.
- A prepaid debit card for kids will not build up your kid’s credit record since the account history is never reported to credit agencies.
A prepaid debit card for kids is a safe and smart choice for parents.
In order to assist in overcoming the “free money” notion that children have with prepaid debit cards for kids, it would be an excellent idea to develop a system to monitor their spending while your kids use their debit card.
Majority of card issuers give users the ability to monitor transactions on the Internet. It would also be wise to utilize a transaction register (works the same way as a check register). This lets your kid to note down all purchases and deposits made to help monitor the current available balance. And in a lot of ways, a prepaid debit card for kids teaches smart spending and budgeting.
Some prepaid debit card for kids even provide instructive materials which can be found on their websites to assist them in learning the fundamentals on proper money usage and budgeting. Likewise, parents can put a limit on the prepaid debit card for kids and keep track of purchases via text or email alerts.