Credit and Debit Card Ratings

Should you give a prepaid debit card to your teenage kid?

Did we ever dream of getting ourselves a prepaid debit card when we were a teenager? I bet we didn’t since we hardly earned enough money to meet expenses on time and protect our financial records from harm. Nor did our parents get allowances or expect anything. However, times have changed.  Nowadays all kids have their own phone and even get certain allowances from their parents.

This is the reason teenagers should be allowed to use prepaid debit cards instead of using cash.  They need to learn to manage their money—and you need to be able to help. A prepaid card allows you and your teenager to track spending at a glance. Although there are high fees associated with some prepaid cards, they’re certainly safer than credit cards for those new to plastic.  And, with a little research you can find a card with minimal fees for your intended usage.

Know the benefits touted by the prepaid debit card issuers

Prepaid debit cards offer a number of benefits. If you want to gift your teenager with such a card, have a look at some of them.

  • Financial education tool: Many parents love to gift their teenage kid with a      prepaid debit card as this poses to be a great financial tool. Teens can get a firm grip on budgeting by using a prepaid card since they have to manage the prepaid amount on the debit card.       It helps them understand the connection between swiping plastic and actual money.
  • Debit cards are safer than cash: A teenager is certainly going to be less responsible than an experienced adult.  Since a prepaid card is typically safer than cash it’s usually a better option.  Even if he loses the card, it’s unlikely that he’ll  have to pay anything for unauthorized use of the card.
  • Ensures peace of mind:      As a parent, you must be worried about your teen and his debit card while he is traveling. But when he owns a prepaid card, you can be sure he has more protection than when traveling with cash.  Knowing you’re able to add funds almost      instantly in case of an emergency should also help ease your mind.
  • Ensures financial independence: Using a prepaid card will allow your teen to make responsible purchases without borrowing money from a financial institution.  He also doesn’t need to carry a lot of cash if he has a single debit card.
  • Debit cards are flexible: Most students love the flexibility of the debit cards since they can use it almost anywhere; including online.
  • Students love the security: The fact that your teen alone can use the card and no one else can use it as the online account information is protected, entices most students. They love this feeling of security, and it can also grow their sense of responsibility.  However, you have the ability to monitor their spending on most cards if you’re not ready for your teenager to have that much freedom just yet.

If you’re worried about the exact age at which you should get him a prepaid debit card, the decision entirely depends on you. Each child matures at his own pace, only you know when he is responsible enough to learn to use plastic.  Use prepaid debit cards to avoid the risk of overdraft fees and debt.

 

Category: Best Low Fee Prepaid Cards

Millions of people are turning to prepaid debit cards as a smart alternative to carrying cash and writing checks. Almost anyone can qualify and they don’t require a credit check or a bank account.

Though they carry credit card logos and can be used anywhere a credit card is used, unlike a credit card, they do not offer a line of credit. The user can only spend the amount that has been loaded onto the card or placed into the account associated with the card.

There are dozens of debit cards on the market, many of them issued by the same bank, but fee structures are vastly different. Bestprepaiddebitcards.com has done all the research for you and provides comprehensive reviews to help you decide which card is best for you.

GO2bank Offers Overdraft Protection up to $300.

And build your credit with the GO2bank Secured Visa® Credit Card with no annual fee*, no credit check*, and no impact to your credit when you apply. (sponsor link)

  • Should you give a prepaid debit card to your teenage kid?

    Should you give a prepaid debit card to your teenage kid?

    Did we ever dream of getting ourselves a prepaid debit card when we were a teenager? I bet we didn’t since we hardly earned enough money to meet expenses on time and protect our financial records from harm. Nor did our parents get allowances or expect anything. However, times have changed.  Nowadays all kids have their own phone and even get certain allowances from their parents.

    This is the reason teenagers should be allowed to use prepaid debit cards instead of using cash.  They need to learn to manage their money—and you need to be able to help. A prepaid card allows you and your teenager to track spending at a glance. Although there are high fees associated with some prepaid cards, they’re certainly safer than credit cards for those new to plastic.  And, with a little research you can find a card with minimal fees for your intended usage.

    Know the benefits touted by the prepaid debit card issuers

    Prepaid debit cards offer a number of benefits. If you want to gift your teenager with such a card, have a look at some of them.

    • Financial education tool: Many parents love to gift their teenage kid with a      prepaid debit card as this poses to be a great financial tool. Teens can get a firm grip on budgeting by using a prepaid card since they have to manage the prepaid amount on the debit card.       It helps them understand the connection between swiping plastic and actual money.
    • Debit cards are safer than cash: A teenager is certainly going to be less responsible than an experienced adult.  Since a prepaid card is typically safer than cash it’s usually a better option.  Even if he loses the card, it’s unlikely that he’ll  have to pay anything for unauthorized use of the card.
    • Ensures peace of mind:      As a parent, you must be worried about your teen and his debit card while he is traveling. But when he owns a prepaid card, you can be sure he has more protection than when traveling with cash.  Knowing you’re able to add funds almost      instantly in case of an emergency should also help ease your mind.
    • Ensures financial independence: Using a prepaid card will allow your teen to make responsible purchases without borrowing money from a financial institution.  He also doesn’t need to carry a lot of cash if he has a single debit card.
    • Debit cards are flexible: Most students love the flexibility of the debit cards since they can use it almost anywhere; including online.
    • Students love the security: The fact that your teen alone can use the card and no one else can use it as the online account information is protected, entices most students. They love this feeling of security, and it can also grow their sense of responsibility.  However, you have the ability to monitor their spending on most cards if you’re not ready for your teenager to have that much freedom just yet.

    If you’re worried about the exact age at which you should get him a prepaid debit card, the decision entirely depends on you. Each child matures at his own pace, only you know when he is responsible enough to learn to use plastic.  Use prepaid debit cards to avoid the risk of overdraft fees and debt.

     

  • Approved Card From Suze Orman

    Approved Card From Suze Orman

    If you find yourself among the unbanked or under-banked a prepaid debit card may be the checking account alternative you are looking for. Suze Orman has recently launched her Approved Card – a prepaid debit card that is supposed to be better than the competition. But is it really? Does it have low or no fees?

    Suze Orman says about the Approved Card, “It’s the single most important thing I’ve done in my whole career.”

    She says it’s a better way to bank.

    It is safer than cash, comes with no credit checks, no check cashing fees, no bank account required, no overdraft fees, no interest charges and it is easy to load and use.

    The Appoved Card (http://www.theapprovedcard.com) also comes with free identity theft protection, free Transunion credit reports, credit scores and credit monitoring. These features are not seen on many of the best prepaid debit cards. You can expect to see services like this included because Suze Orman is a big proponent of keeping an eye on your credit report and score.

    So let’s talk about getting this prepaid debit card’s fees. You will have to pay $3 to purchase it. This fee is lower than most other prepaid debit cards. And then you have a $3 monthly account maintenance fee with the first month waived. Compare this to other cards which can run from no cost per month all the way to $9.95 a month.

    You can get free ATM withdrawals at over 35,000 Allpoint locations for the following 30 days you make a Direct Deposit of $20 or more. You can find these ATMs at places like 7-Eleven, CVS, Costco, Kroger, Target and Walgreens. Otherwise you will have to pay a $2.00 fee.

    You also get free online bill pay and a free additional card along with no activation fee.

    You do not have to pay a fee to purchase with a signature or PIN transaction.

    You also get one free live customer service agent call per month and $2.00 per call after that.

    If you like to receive a paper statement that will cost you $2.00 per statement.

    When you check out the fee chart you will see that most of the fees can be waived for a 30 day period after you Direct Deposit $20 or more.

    So who is the Approved Card by Suze Orman for? People who do not want to use a secured credit card, people who cannot get approved for a checking account due to bad credit, and people who will deposit less than $1,000 each month through Direct Deposit.

    It’s not the best prepaid debit card but it is also not the worst prepaid debit card.

    For more from this author visit:  Tameka Riley’s Author Page

Credit and Debit Card Ratings