Head to a college campus, and you’ll likely find 2 money trends among students: More prepaid debit cards and fewer credit cards now compared with several years ago.
Nearly 1 in 4 college students had a general purpose reloadable prepaid card in 2014, according to Javelin Strategy & Research. And the popularity of prepaid debit cards continues to increase.
“Prepaid is the fastest growing area of payments,” says Brad Fauss, president and CEO of the Network Branded Prepaid Card Association.
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As a parent, it may be more reassuring to see your son or daughter with a prepaid card, which has a built-in spending limit, rather than a credit card. The prepaid route, however, doesn’t guarantee financial soundness among kids.
To best prepare your teen or college student for a prepaid card, you’ll want to have a Finances 101 class in your living room.
Follow these expert-approved guidelines to start your child off on the right financial foot with a prepaid debit card.