Youth can become financially savvy by using prepaid... - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Youth can become financially savvy by using prepaid cards

Youth can become financially savvy by using prepaid cards

Youth can become financially savvy by using prepaid cards
The content is accurate at the time of publication and is subject to change.

Young adults can easily learn the ropes to gain financial freedom with the use of prepaid cards.However, both the users as well as their families will have to be aware of its limitations and the costs that are associated with them, experts report.

Most of the major banks offer these prepaid cards, where a set amount could be loaded well in advance.Most of these purchases could be made in the same manner in which the ordinary credit card is used and it could also be used to withdraw funds from the ATM’s.But the only limitation is that once the amount is over, it is over unless it’s topped up again.

Most of these prepaid cards have been targeted at these young adults.For example, MuchMusic has a prepaid MasterCard on offer and has a huge list of FAQ’s for parents pasted on their website.

The executive director of Credit Canada also provides financial counseling to young adults, which is a non-profit organization.She states that most young adults are being unnecessarily burdened by thousands of dollars of credit card debt and not just the student loans.

College & university students racking up huge unsecured debts seem to be a cause for concern according to Laurie Campbell. Hence, debit cards will help keeping them in check as they can use only what is available on the card and nothing over that.This might help these young adults understand things about the checks and balances of the credit system as a whole.

Credit Counseling Society, CEO, Scott Hannah states that while there are certain merits associated with prepaid cards when it comes of security and convenience, but is not a solution to financial problems that could arise if these youngsters are not financially savvy.

Debit cards do not necessarily promote better spending habits in youngsters as parents keep loading these debit cards for their children and continue to do so, he stated.There are also other costs that are associated with prepaid cards and many cards will charge a fee every time a card is reloaded.These charges will depend on how often the card is reloaded in a year.Although it is not insurmountable, these costs certainly add up.There are also limitations on these cards while using it for making online purchases and they don’t help in establishing the credit history.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

Minor League Baseball and Allegiant Airlines Partner Up

Posted: December 13, 2018

Allegiant Airline and Minor League Baseball have inked a deal paving the way for a credit card partnership, one giving fans a credit card that reflects their fandom in terms of rewards whether they are traveling or catching a game. When ... Continue reading
Capital One Partners Up With Airlines

Posted: December 12, 2018

Capital One has partnered up with 14 airlines so that Venture and Spark cardholders can now use miles to pay for their flights. What is the transfer ratio? All of the carriers that have partnered up with Capital One, except for Emirates ... Continue reading
Holiday Shopping is Trending

Posted: December 11, 2018

Shopping is definitely in style this holiday season with consumers, according to the new TD Bank Holiday Retail Report, on average they will be spending $530 on gifts. What are the trending gift-giving categories this season? Gift cards ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum, each time you activate.
For Excellent, Good Credit
INTRO OFFER: Discover will match ALL the Miles you've earned at the end of your first year, automatically. For example, if you earn 30,000 Miles, you get 60,000 Miles. That's $600 towards travel!
For Excellent, Good Credit
Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay
For Excellent, Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!