Prepaid Credit Cards For Teens
Teenagers these days are far more mature than they used to be in the past. They take on a lot more responsibilities and are more socially aware that ever before.
You may like to help your teen to be better equipped for the future by teaching them from an early age about the value of money and the inherent responsibility that goes along with it.
You could be considering a prepaid credit card for teens. This has several benefits for you and your child. Here are just a few.
People under the age of 18 can not apply for a credit card. This would be co-signed by a parent or guardian who will act as guarantor.
A prepaid credit card has limits to how much can be spent. This means that your teen can only use it until the funds run out.
This is an excellent way for a young person to learn about their spending habits and how to control them. If they know there is only a certain amount of money available they have to learn how and when to use the cash appropriately.
If your teen has a part time job, they can easily access their wages. This means fewer chances of them begging you for your money.
A parent can monitor their child’s spending habit. Some companies offer online support to enable call tracking.
There is no fear of your teen going into debt or overspending with this type of card due to the limits imposed. There are only funds available when money is topped up.
There are no interest payments to be made if you use this card as you are not borrowing any cash from a bank or financial institution. No borrowing means no interest added.
To apply for a prepaid credit card you do not need a credit history. This is great for a young person as they are unlikely to have a credit history yet.
So if you feel that your teen is mature enough to start dealing with their own finances, you should start looking around for a prepaid credit card that will suit their needs.
Each bank will have their own set fees which will be incurred when you top up the card but this is a small price to pay if you are able to provide your son or daughter with the ability to start learning about money management from an early age. If you can get them to understand and respect money now, you will be setting them up to be financially aware young adults for the future who will face less risk of ending up in debt.
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