Pre-Paid Debit Cards May Replace Pocket Money

With the government introducing a new initiative to teach primary school children the ways of careful money management, perhaps we should all take a good look at the way we spend and save our hard earned cash.

It is widely believed that children learn what they need to know about the big wide world from their parents. If this is the case then the thousands of households in the country currently having problems with money could carry on the trend in later generations as children see how the parents are handling their finances.

Some may believe that simply giving their son or daughter a crisp £10 note each week will not comprehensively teach them the value of money. A more comprehensive background in money management could be needed to prevent a future credit crisis.
This is why prepaid debit cards are an option for parents who wish to help their children understand how to manage finances. Similar in appearance to their traditional cousins, these cards can be pre-loaded with money and spent in shops, restaurants and leisure centres.

A mum or dad could decide to apply for one for their children for reasons of safety and should they be the victim of crime or lose their purse or wallet, the card can be cancelled. Whereas cash is untraceable and cannot be replaced. Other functions can be included, such as the ability to top up mobile phone credit or spend cash abroad.

Adults who struggle to get credit after encountering previous money problems may also find them useful – they can be more likely to be accepted for a pre-paid card than the usual bank or building society-lead account. On the downside, they can be costly to run - there can often be an application fee for opening the account and monthly charges.

If you want to know more about prepaid credit cards why not ask AnswerBank Business and Finance.