Prepaid Debit Cards have been around in the UK for around a decade and the very first prepaid cards to be launched were developed as online spending cards for teenagers. Stripped of the regulations and maturity of today’s products, these cards were meant for only one thing – to help young internet users budget their spending and activity online.
Hence, it is not surprising to note that whilst the prepaid proposition has matured considerably over the last decade with travel cards, money transfer cards and payroll cards being thrown into the mix, the use of prepaid cards as a budgeting tool is still extremely popular with young and growing families.
What are Prepaid Cards
Prepay cards or Prepaid Debit Cards are similar to credit or debit cards issued by the banks. The main difference between a prepaid card and a credit/debit would be that there is no credit or overdraft facility on a prepaid card. Furthermore, pre paid cards need to be loaded with funds before they can actually be used.
Budgeting with Prepaid Cards
Prepay cards have numerous benefits which include safety, security, convenience amongst other things but the ability to budget your spend and stay in control by using a pre paid card is one of the reasons for the popularity of prepaid cards for young and growing families.
* Budgeting for Your Growing Family
There is perhaps only one product which has been developed specifically with young and expecting mothers in mind as the mums prepaid card as it provides numerous discounts and offers on baby products as well as discounts on shopping, lifestyle items, groceries and petrol amongst various other things. This effectively allows young families to do more with their money and helps stretch their budgets even further.
* Budgeting for Young Ones
There are numerous pre paid cards which are available to youth. Typically, parents can apply for these cards and pass them on to their children. These cards can help your teens develop excellent money management skills and learn about financial responsibility with a hands-on tool that teaches them about finances in a controlled environment.
Parents can monitor balance, spend, transaction history via online account management tools allowing you to give your young ones the freedom to learn whilst they stay in control.
* Budgeting for Adults
The importance of budgeting and staying in control of finances is not just important for youth. One only has to look at the debt figures to realise how important budgeting and financial control is if one has to stay debt free. Pre paid Cards do not allow you to overspend on impulse or spend more than the balance on your card which means more often than not, you spend only what you meant to spend in the first place.
No wonder, they are an essential budgeting tool for the entire family.