The majority of teenagers enjoy spending money, but they don’t give much thought to where the money they’re spending comes from. And while some teens may be a little more considerate to their parents, it goes without saying that most teens, as well as many adults, may not give much thought to potential costs associated with spending – such as overdraft fees. Teenagers who use their parents’ credit cards not only do not learn valuable money management skills, but they put their parents’ credit card scores at risk, too.
An ideal solution is a prepaid debit card, such as the type available at places like Kaiku.com. Prepaid debit cards function just like traditional credit cards, but the balance available on the card is entirely dependent upon how much money you load onto it. Additionally, there are no credit checks required, and your credit score won’t be affected by usage of the card. For teens who want to learn budgeting skills, a prepaid debit card is the perfect choice. It teaches accountability and responsibility, and gives parents peace of mind. Plus, thanks to today’s technology, the majority of prepaid cards can be loaded via bank transfers or direct deposit, and the account can be managed online, and even on a smartphone.
