Sometimes when your child leaves the house you really worry about them. That worry doesn’t change when they grow up and become teenagers. It still doesn’t change when they go to university or college. You never know what might happen when your son or daughter leaves the house. However, running out of money can be a worry of the past.
Giving your teenager a prepaid credit card can be a really simple way to ensure your child is safe in the outside world. You’ll be safe and secure in the knowledge that they will have the money to get home. If they spend all the change in their pocket, they still have a plastic friend to fall back on.
You can set the rules in advance and explain to them when they should use the card. Have a thorough discussion about when it’s appropriate to use the card. This should help avoid arguments and abuse of the card in the future. They should be aware it’s to help them and that it is in their best interest to use the card accordingly.
There are many other benefits to giving your teenager prepaid credit cards. Not only can it be used in emergencies, but it can also be used to teach your teenager money management skills. By limiting the amount on the card, you are teaching them how to deal with their finances. They will realise that mum and dad are not bottomless pits, from which money constantly flows. Instead, they will learn to live to a budget and respect the extra aid given.
These cards are better than normal credit cards as your child is not racking up thousands of pounds in credit card debt, or in interest repayments. Instead, they are using money that they, or you, have already put on the card. This means you can be assured that they will not get into financial bother with a credit company. Also, if the card is lost or stolen your credit facilities are safe. In most cases, you can even have the funds on the missing card returned to your current account. You wouldn’t be able to do that with missing cash.
Knowing that your teenager has some cash to fall back on if times get hard can be a great reassurance to a parent.
Image credit: PT Money (ptmoney.com).