Prepaid cards have opened up the possibilities of what you can do with and who can own a Visa card. In the past, credit and debit cards were the luxury of those privileged enough to own bank accounts. Now, you just need a mobile money account, linked to a prepaid card, to start swiping in-store. Prepaid cards can be used as a budgeting tool, used to pay wages and to allocate company expenses. Not only that, reloadable cards can help teach your kids how to manage their finances, without the risk of giving them a debit card.
Pocket money is an important part of a child’s transition into adolescence
Weekly pocket money has been a thrill in a child’s life since time immemorial. That said, things have changed quite a bit when it comes to kids’ expectations about how much they receive – not to mention what they spend it on. Penny sweets might have been in fashion decades ago, but today’s youth is probably more interested in the latest gadgets and a fast food meal at the mall. Being able to impress their friends with their purchases is just as important as how much money they get in the first place.
Cash is a lot easier to lose, and you can’t get it to your child in an emergency
As determined as under 18s are to be grown up, when it comes to money matters they’re still a lot more likely than adults to lose cash, lose their change and fail to budget adequately. That’s why prepaid cards are the ideal solution to help them manage their pocket money. A mobile money account can be set up using their mobile phone number, ID number and consent from a parent or guardian. Providing some easy FICA documentation (from their parents) enables them to link their mobile wallet to a prepaid card, after which they’re free to go shopping. Cash can be deposited into their mobile money accounts instantaneously from your mobile money account for a minimal charge – if they’re ever strapped for cash in an emergency, you’ll be able to get money to them safely.
With a prepaid card, there’s less risk of it being stolen
Prepaid cards, unlike credit cards and some debit cards, don’t come with a credit limit, so it won’t be possible to overspend. As well as making your kids feel like they’ve been given more responsibility, they’ll be less of a target to pick pockets, as they won’t be carrying cash. What’s more, reloadable cards will teach them how traditional and cellphone banking works, so that when they come to own a bank account and debit card themselves, they’ll already know the ropes.
For detailed information on how prepaid cards work and how your kids can benefit from them, download the Reload brochure.