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A Good Choice For Teenagers

A Good Choice For Teenagers

If you would like to teach your child how to best manage their money, prepaid cards will certainly help give them the structure they need to curb overspending. Providing your teenager with a prepaid card might prevent them from going deep into debt soon after they leave the house when they are plagued with offers for high interest rate credit cards.

Prepaid credit cards provide a modern take on an allowance for your teenager. Load as much money as you like onto the card, and you will be able to track your child's spending habits online. All of their purchases--from movie tickets, to a late night diner bite, to a new CD, etc.--will be clearly delineated for you to see. With this knowledge, you can help your child understand their spending and improve their basic knowledge of budgeting and money management.

Another perk to giving your teenager a prepaid credit card is that their spending mistakes will not hurt your credit. If the child spends all of the money on the card, it does not appear as a "maxed out" credit card on your credit rating.

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