- my iParenting
- quick clicks
- preteenagers today articles
- preteenagers today q&a
- teenagers today articles
- teenagers today q&a
- community & groups
- research baby names
- prepare a birth plan
- content channels
- ip channel rss feeds
- read birth stories
- read parenting stories
- recommended books
- e-newsletters
- safety recalls
- ip diaries
- ip store
- mom of the month
- dad of the month
- editor's letter
- letters to the editor
From Our Sponsors
- e-newsletters
- Sign up to receive our free weekly e-newsletters
- award-winning products
The iParenting Media Awards program helps parents find the best products for their families.
The Prepaid Way
Help Your Teen Learn to Manage Money with Prepaid Credit Cards
By Tamekia Reece
Like most things, these cards do sometimes have downfalls. In most instances, it's mainly the fees that are associated with their use. Some companies charge a "per-load" fee (a set amount that is charged each time you load money onto the card). Some charge a monthly fee whether you use the card during that month or not. And still, some others charge a fee each time you use the card. Though this is usually only a dollar or two per transaction, if the card will be your teen's sole method of making purchases, that buck or two will add up quickly.
Another common complaint cardholders have is the inconvenience of loading the cards. Though most programs make it easy to reload cards by providing online services or direct debits, some others have very limited locations to deposit funds on the card. For a teen who's anxious to get his hands on the latest gear, searching out a location to load money onto his card won't be an option.
Fees and out-of-the-way loading spots aren't the only negative staples of using these type of cards. "Another disadvantage is getting a limit too high and risking the teen spending the entire amount too quickly," Giarratano says. If you feel your teen will be irresponsible in her spending and will come back to you time and time again asking you to reload her card, you should give a set amount of money for a certain amount of time, and stick with it! If you give in when she comes back with her hand out, she won't learn the valuable lessons about financial responsibility that you were hoping to teach her.