A pre-paid credit card can teach you and your children how to spend money responsibly. It’s also a convenient way to buy things, both on and offline without involving cash…
The great thing about this kind of credit card is that you can only spend what has been pre loaded onto the card. This is a great way to pay your kids pocket money and enable them to learn how to manage credit from a very early age. Let’s face it, cash will probably be a swear word in the future or about as useful as a chocolate fireguard so the way forward must be to teach our children how to use credit responsibly.
By only having a certain amount on the credit card you’re kids will soon realise that just because they have plastic it doesn’t give them an endless supply of money and that it’s best to buy with the money you have already and not with money you’ll end up owing to someone else. It isn’t just about being responsible with credit cards either because the average pre-paid credit card will also work in cash machines across the country and even abroad if they’re backed by someone like Mastercard. The fact that you are enabled to get cash with it makes it perfect to pay your kids. They can learn about managing their money by shopping with a credit card, and shopping with cash, and they’ll also learn that you can’t buy with what you don’t have. This is often the best way to teach children about money because they feel like they’re learning themselves and that you are not telling them what to do.
Tags: credit cards, pre-paid credit cards, teen credit cards