Having a credit card can sometimes be a hassle. For example, interest rates on purchases may accumulate very quickly. Late payment fees and other charges for overdraft can also pile up and hurt a credit card holder’s personal budget. A parent’s worst nightmare is when a child takes a credit card and then uses it on a careless shopping spree at the mall. Parents may have to deal with a credit card statement that shows hundreds of dollars in a negative balance. The only way for parents to control the spending habits of their children is to take advantage of prepaid debit or credit cards.
A prepaid card essentially cannot be depleted beyond a zero balance. There are absolutely no risks with overspending the funds that are available in a refillable card. Money can be added to a prepaid card through online management. An account needs to be created and then accessed through the internet in order to make payments to add funds. The prepaid credit card account can be linked directly to bank accounts, savings accounts, money market programs and even actual credit card lines.
Parents can manage prepaid cards by receiving alerts when the funds are low. The alerts can be sent in text message form or by email. Mobile applications make it easy for prepaid card holders to manage their account. With a single touch of a screen, actions such as adding funds or freezing the card can be done easily. Trying to get a prepaid debit card at Kaiku.com and other sites is an example of smart management of personal finances.
A prepaid card can be used to control the allowance of children. Parents can create a strict budget for their kids and ensure that the funds are spent wisely. Sometimes, the funds can be limited based on specific time periods. For example, parents may only allow a certain amount of money to be withdrawn from a prepaid card within a single week. Speaking of withdrawal, cash can be taken out from prepaid credit cards that are accepted at thousands of ATM locations nationwide and internationally.