When children get older they will probably want the freedom that a credit card brings, but are kids prepaid Visa cards worth having? We take a look.
It is inevitable that when they get older, teenagers will want some of the independence and financial freedom that they see their parents enjoying, however being under 18 and in full time education will preclude them applying for a credit card in their own right.
This is where a prepaid visa card can help. These prepaid cards are applied for and funded by parents, however the card is registered in the name of the child and can be used wherever a Visa card is accepted.
As there is no credit facility, the teen can only spend what is loaded onto the card. It means uncontrolled credit fuelled spending is not possible – once the prepaid funds have been spent, then the child has to approach his or her parents for more money.
This engenders responsible spending and budgeting, all under the watchful eye of the parent and therefore provides valuable lessons for the teenager about managing their personal finances.
If the Visa prepaid card is lost or stolen, neither the parents or the child have liability for unauthorised spending as long as the card company is notified about the loss as soon as possible.
This makes a prepaid card safer than having a teenager carrying significant sums of cash on their person.
Also as there is no credit facility with these cards, neither the parents’s or the childs’ credit history is at risk.
So back to our question about whether kids visa prepaid credit cards are worth having.
We believe that they offer an excellent opportunity for young people to experience a degree of controlled financial freedom and yet have safe access to money when they want or need it, without the danger of overspending or damaging anyones’s credit histories.
The Virgin prepaid card is Visa and there is a PAYG or pay monthly option. Find out more details on the Virgin Website.