There is a new concept on financial management for students and teens. Parents love it, and so are the students and teens. It is helping families teaching their children how to become financially literate. Not an easy task I supposed.
Also in the works are websites that focus on teaching financial management skills and fiscal responsibility to youths through interactive games and other lessons geared towards youths. These features combined with parental input ought to help many young people get off to a financially sound start.
A new development is a Pre-Paid Card that is much like a Debit card. It’s PIN-based, and when endorsed by and bearing the logo of a major Credit Card carrier, such as MasterCard or VISA, the myriad businesses, restaurants, and shops around the globe just like those that accept normal Credit Cards can accept it. The outlook has no or slight difference over normal Credit Card.
Parents can and will decide how much money will put or top up on the card each month, and the children manage it from there. They will know how much they have got, and it is up to them to budget for their needs. There is no chance with one of these that a student will rack up thousands of dollars in debts.
Parents could just give their children cash each month, or send them a check if they are away at school. However, having the ability to credit a card that is already in your child’s hands has the advantage of convenience and that makes it easy for financial management. In addition, there is no chance of the money getting lost in the mail. In the case if cashes are stolen, you kiss it good-bye most probably forever, but if one of these cards is stolen, it is useless to the thief without the PIN.
It is also possible for parents to set parameters for the cards in terms of where they can and cannot be used. That way if there are certain types of establishments or shops where you do not want your son or daughter to spend the money away for those fancy stuffs instead of giving them for living expenses, it can be blocked.
This is done by business categories though, not by individual establishments. This feature is part of what makes this type of card a chance to be a financial management learning tool. It is ideal for youths who are not quite ready yet to possess of an actual Debit card or Credit card.
These cards usually have a modest Activation Fee and a minimal monthly usage fee. People in the financial industry who sell these cards love them too. A sales agent receives a commission for each card issued as well as a portion of the monthly fee for as long as the card is active. This makes it a Win-Win solution for families and the Bank Card industry.