Owning a credit card can
sometimes be a hassle for a variety of reasons. First of all, credit card
holders are under pressure to repay all of the borrowed money within a single
statement period. Sometimes, people cannot come up with large sums of money within
a 30 day time span. If payments are not made by the deadline, then interest
fees are charged in addition to the outstanding balance.
A prepaid card can eliminate all
of the headaches and problems associated with traditional credit cards. First
of all, a prepaid debit card is loaded with a person's actual money. There
aren't any interest rates that are applied. There aren't any hidden fees and
penalties that can be charged to a reloadable debit card. A person can only
spend a certain amount of money that's loaded onto a prepaid card.
Such an option is useful for
teenagers who live off their parent's money. Hard working parents can manage
all of the funds of a prepaid card. For example, the weekly allowances may be
easily loaded onto an account that's associated with a reloadable debit card.
Parents may use smartphone apps in order to manage all aspects of such
convenient payment options. A Kaiku Visa prepaid debit card is an example of a
financial tool for parents that have teenagers. Personal identification numbers
should be created in order to secure prepaid debit cards. It's common for
teenagers to steal credit cards from their fellow peers in school and at the
mall.
I actually like prepaid card idea. For some reason I hate using credit card because it is basically like taking a loan.
ReplyDeleteTeaching teens about money management is so important
ReplyDeleteThis is very good to know! Thank you!
ReplyDeleteI have teenagers that work and live off their own money. They do have debit cards and have used prepaid cards on occasion. Sometimes I purchase a prepaid card when I'm traveling so I don't have it linked to my credit or bank accounts.
ReplyDeleteI owned a credit card in my early 20's and it was a disaster. I was never taught personal finance growing up. I racked up so much debt it took me years to get out. We don't currently own a credit card. Prepaid sounds like a great solution!
ReplyDeleteI think prepaid cards are a great idea for those learning how to manage money...
ReplyDeleteGood tips for financial management, thank you for sharing. They don't teach you this stuff in High School Economics and they should.
ReplyDeleteWe had to go through this with our kids. So glad they are savers as adults.
ReplyDeleteGreat tips to get started for young adults and for more experienced people as well.
ReplyDeleteI think we all could use a lesson in financial management. Amber N
ReplyDeleteFinancial management is so important.
ReplyDeleteMy aunt and uncle let their teens shop online, but ONLY with a prepaid card. You're right it's great for eliminating potential headaches!
ReplyDeleteI've noticed this about American media: people there don't seem to know what debit is. Debit has been around in Canada since the 90s and is used by over 90% of the population. You can't get a bank account without a debit card attached to it here. Credit cards are BAD, ALWAYS. There is never a situation where a credit card is good. Use debit folks!
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