Kids Credit Cards

Want to give your child a credit card but worried about overspending? A prepaid
credit card will help your kids learn about money, credit and responsibility
You can monitor your child’s expenses and allow your teen a little control and
flexibility. With a prepaid credit card, your teenager can spend freely up to a point.
Unlike regular credit and debit cards, you can’t go over the spending limit

They will learn that when the money is gone it’s gone.

How prepaid cards work:

• You can load them with however much money you want.
Monitor your child’s expenses with online statements, or by calling the credit
card company. You can reload the card either online or by phone.

• Prepaid cards are safer than cash, because most card issuers guarantee
you’ll be refunded for unauthorised purchases. If you’re worried, don’t put a large
amount of money on the card at any one time. And safeguard your PIN number.
Also be sure to change it often.

• Relatives can put money on the card, instead of giving cash or sending
a cheque. You can authorise family members to add money to the card any time.

Some credit card companies are marketing special prepaid cards just for teens.
Some marketing campaign are aimed at teens and their parents.
No overdraft fees, no interest charges, no late fees…Allowance 21st century style.
But if you want to teach your kids how to handle money, not just how to spend it
you need to impose strict guidelines on your teen.


Children Credit Card:

• Let them know when the money is gone, it’s gone, no exceptions.
That way, they’ll learn how to budget more efficiently, and make wise purchases.

• Make them work for the card, by doing chores around the house or helping
with a family business. It’s never too early to begin teaching work ethic and
responsibility.

• Monitor your teen’s purchases. Don’t be afraid to speak up if you think your
child is spending too much on clothes or other non-essential items. Make it a
requirement to put a certain percentage into a college fund