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Parents Need Prepaid Credit Cards for Their Kids


Your teens need to know about the perils of credit card debt before they get their own credit card.

These days many teens have their own credit cards or have access to parents' credit cards, or have debit cards. But the problem is, many teens are not responsible users of credit cards. When teens have money, they love to spend.

And once teens have left home, spending without thinking about how to pay off the bills often leads to mounds of debt. They have to make financial decisions and they have to be on a budget and decide things on my own.

Parents are likely to give their children prepaid credit cards with a set limit instead of their own cards with a higher limit.


Are you a parent who wants your kids to learn financial skills?

We live in an unusual world where kids are granted credit even before they have earnings to justify their ability to repay. College students are an obvious target, because marketers figure they'll go on to get good jobs. Or their parents will bail them out.

The average college student graduates with three times as many credit cards and twice as much credit card debt as when they entered as a freshman, according to a 2002 study by student loan provider Nellie Mae. Therefore, before your children enter college -- where they will likely be bombarded with opportunities to sign up for multiple credit cards -- it is important to educate them about the perils of credit card debt.

By educating your children early on about effectively managing their expenses, you will teach them a priceless lesson, which will hopefully prevent them from making costly mistakes in the future.

Parents who choose prepaid cards are able to provide teens the crucial experience of living on a limited budget and being accountable for their fiscal decisions. The use of the prepaid credit card will ensure that the teen or student won't overspend, as they can only spend up to the amount of money that the parent has deposited into the account.

Now you can let your kids have this card without worrying about them getting into debt


Prepaid credit cards can solve your problem.

The prepaid credit card solves kids' needs for a way to carry their money safely and parents' needs to control where the teens do their spending.

Parents reinforce responsible card usage by monitoring their teens' spending through the prepaid card's tracking tools. The prepaid credit card gives teens hands-on money management experience in a controlled, parent-supervised environment -making it an excellent first payment card and an ideal tool for teaching financial responsibility.

Parents deposit money into an account, and the teen card user can charge up to the amount that's available in the account. Parents can add more money on a regular basis for an allowance or whenever the money runs low. That's easily done by transferring money from the parents' checking account or their own regular credit card. And it's a great way for grandparents to send birthday money instead of a check. They can also add to the account balance online.

The prepaid card offers teen cardholders spending independence and flexibility, while keeping parents informed, involved, and in control.


Prepaid credit card is a great educational tool for financial responsiblity.

If you have teenagers in your household, you can eliminate the need for giving teens cash. With your parental control, the prepaid credit cards make it easier for you to manage your budget and teach your teens financial responsibility.

The prepaid credit card is a perfect tool to start teaching teens about tracking spending, setting priorities, and managing money using spending limits. Plus, it's a lot safer for them to carry a credit card than cash.

Prepaid cards allow parents to set spending limits and monitor where their children are spending money, both through monthly statements and through Internet accounts that show daily transactions. The parents transfer money from their own checking accounts to the card for a small transaction fee, and the card can be used like any other credit card to make purchases.


Online tracking

Parents can access the card issuer's web site at any time 24 hours a day and see where the money's been spent. Parents can see how their kids are spending the money and hopefully have discussions with them,

If you have teenagers in your household, you can eliminate the need for giving teens cash. With your parental control, the prepaid debit cards make it easier for you to manage your budget and teach your teens financial responsibility.


Talk to your teens

Talking to your kids about the family finances and fostering good habits when it comes to allowance, saving and credit card use are great ways to introduce budgeting.

Another way to ensure your child truly understands the concept is by giving them responsibility when it comes to spending. Rather than taking your teen shopping for back-to school items, make a list with them of what they need and decide on a reasonable amount to spend on those items. Then give them the money to go out and buy the items themselves.


Powerful parental control

If the college student calls home complaining about the cost of books and supplies, but the parent sees money spent on clothes or at the campus bar and grill, you can be sure there'll be a confrontation.

Some card providers offer more powerful parental control capablitlites: Parents can cancel or suspend the card at any time. And parents can sign up for an e-mail alert when the card is used at a merchant that might sell inappropriate materials for teens. That gives some real control over these independent teens.


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