Best Reloadable Visa Prepaid Card Offers For Teens
There are more and more prepaid debit card offers for kids from big banks and credit card companies. This is not a bad idea, because parents can start teaching youngsters about managing their money responsibly. Since we are already paying for ordinary items such as food and grocery using credit cards with cash rebate rewards programs and the use of physical cash is on the decline, it is a good opportunity to let young teens get familiar with reloadable debit cards for kids under 18.
Many adults today are trying to pay down their credit card bills because they lack proper personal financial education and do not know how to spend within their means. By applying for free debit cards for kids, parents wanted to teach them about handling money and credit from a young age. Instead of giving them cash as allowance, the money will be loaded into their prepaid Visa debit cards and they have to plan for themselves how much to spend and how much to save, especially if they wanted to buy an expensive toy.
Like bank cards for kids, these teen student debit cards are safeguarded with the limited balance that can be used. There is no real credit involved so you can only spend up to the deposit you have preloaded previously into the bank account linked to these reloadable debit cards. While it is similar to spending cash in your pocket, it is easier to track expenses made using debit cards for kids. And in the event you lose or misplace the debit card, the money in your account is still safe and you only pay a card replacement fee. That is why many parents welcome the idea of getting prepaid debit cards for their teens.
Every month, the issuing bank will mail an itemized statement of all purchases charged to the debit card and parents can teach their children how to reconcile those statements. You can get kids to understand the importance of budgeting their expenditure and save their balance allowances. By using a debit card, you can get into the habit of avoiding avoid overdrafts, since there is no credit extended and this helps to build some self discipline against impulsive purchases in future. You can train kids to avoid the credit card trap, that is to spend more than what is affordable due to readily available credit given by banks.
This will help them maintain a good credit history that is necessary for cheaper loans and financing later on. So which are the best debit card offers for kids and students right now?
PAYJr Visa Buxx Card For Teens With No Minimum Balance
You can choose between the PAYJr Visa Buxx Card or the Prepaid Visa Rushcard for teens between 13 to 18 years old. These are good examples of prepaid credit cards for kids. We find that these have rather acceptable fees to teach teens the proper way to use credit cards, but you should go through them yourself too. For example, the PAYJr Visa Buxx debit card for kids with no minimum balance required has a one time fee of $9.95, a $4.95 monthly service fee and a fund loading fee of $0.50. It is not free, but many parents still decide that it is worth paying for.
The PAYJr Visa Buxx debit card has a free Chore & Allowance system that teaches financial education for teens and how to work hard for their PAYJr Visa debit account. Parents can assign specific tasks for their kids to complete in return for topping up their accounts with some funds.
Prepaid Visa Rushcard For Kids Under 18 With No Fees
Alternatively, the reloadable Rush Visa card for children age 13 and above have a one time $19.95 one time activation fee with no monthly or annual fees. There is a $1 fee per purchase, capped at a maximum of $10 per month. Both prepaid Visa credit cards for teens are highly recommended.
One of the best use for teen student prepaid debit cards is that these can be used to rent a car under their own names, which is very convenient when they are on a holiday trip with friends on their own.
From the above features, it should be clear why some parents feel that these are good teens starter credit cards to get their children educated about proper use of credit and avoid overdrafts so that they can avoid unnecessary debts in future.