Getting to grips with money from an early age can be incredibly helpful in later life when it comes to dealing with the challenges of financial responsibility.
Plastic payment options such as credit and debit cards are increasing in popularity, so preparing youngsters for the option use these could be important further down the line.
However, many of these options are age-restricted and come with the risk of racking up debts, so giving them to young people is not recommended.
But a youth prepaid card option could be an alternative as it gives children freedom to use it while also providing a certain level of parental control.
Understanding money management with risks
This means a teen can have access to a payment method that can help them to understand money without all of the risks that are involved.
It means they can purchase goods online and experience a certain degree of financial freedom, although they will not be able to overspend as only amounts which are specifically on the card can be spent.
This could be tightly controlled by a parent as well, as certain websites could be restricted and updates on spending could be delivered via text or email.
Cards could also be restricted to use at ATMs or could have a set monthly spend allowance – preventing the child from splashing out on huge purchases.
As a result, anything purchased could be seen by a parent and they can also monitor their child’s spending habits, pointing them in the right direction if necessary.
Exposing children to good financial habits
Potentially, this sort of financial choice could help to develop good financial habits, exposing children to aspects of money management such as budgeting and saving.
The teaching of fiscal awareness is increasingly being seen as an important part of a child’s development, so a prepaid youth card provides a parent with a different option.
It offers a viable alternative to cash, as parents can easily monitor spending and children gain an element of freedom, all while staying safe from the dangers of alternative payment methods.
Other card payment options can involve the distribution of sensitive banking or card information, something that children should not be exposed to.
As a result, teens can purchase music online or shop for goods using their own funds and without requiring the use of a parent’s bank card.
A number of youth prepaid card options are available and can be hugely beneficial in helping children to understand more about finances in a risk-free manner.