When I was in the toughest financial crisis of my life I realized that how important is it to control my spending and manage your financial picture. This was the time I realized that I should train my children for their future so that they could not get in debt and if they do they could easily handle it. To do that, the best thing you can do is to open a joint checking account with your child when he or she is in their teenage. Provide them the prepaid credit card so that they could learn how to use it while they are under your supervision.
One of the important thing in grooming your children for their future financial management is to share the problems you have faced and the reasons that brought you to get in debt. This could help them to learn from your mistakes and in the end they would not have to get in debt by doing the same mistakes you did. Although the life is much different from what we expect but these things can help a lot.
Giving your children the liability of using a prepaid card or a debit card could help them to view things in broader perspective. Allowing them to take debt for their purchases could help them to learn how to get rid of it quickly and when they will leave their teenage they would not get frightened with the word debt and if they would have to take it they will pay off in a good manner. Using Prepaid Cards instead of an actual credit card would help them.
Now there are some companies and banks that will help you get a card for your kids while they are in their teenage. To get an account you will have to be a joint owner so that you could supervise every activity they do. So below I have put up some of the companies that will help you in this regard. So let’s start,
GoHenry is one of the best banking tool that you can use to teach your children about financial management. GoHenry was founded in 2007. The account works in a very friendly way as you make a parent account by your name with the bank and then you can set up your child’s account under your control and your kids will get debit cards for their use. You can control your child’s account and transfer money in to your child’s account from your parent account but for that you will have to put up some money in your parent account from the main bank account. You can transfer money at any times you want and this is one of the best method to teach your children that work will get them money. Using GoHenry can benefit you in many ways as you can set many limits like choosing where to use the card or setting a weekly spending limit. You will be notified for every purchase made from your GoHenry account and you can block any of your card at any time. GoHenry cost a monthly fee for your account management but you can try them for free in your first month.
2- American Express Serve
Another Bank to get a prepaid debit card is American Express. This bank has three different type of Serve cards for its customers. The three cards have different options for you and you can choose according to your need.
The first type of American Express Serve card is the American Express Serve Basic and it is one of the famous. This Serve card comes with many benefits like there is no ATM fee, no fee on online bills and no fee on direct deposits. Although other than that you will have to pay a management fee of a single dollar per month but you can save that by depositing an amount of $500 or more in a statement period. Apart from that you will have to pay the reload prices that is different by different retailers (commonly they charge $3.95).
The second type of American Express Serve card is the American Express Serve Free Reloads. If your teen needs a lot of reloads in a month then you should consider this card as here you will not have to pay any reloads fee. Other than this you can use the ATMs for free and there is no fee for online bills payment. If you are not a resident of TX, NY or VT then you will have to pay a monthly fee of $4.95.
Now talking about the 3rd type of card that American Express Serve provide is American Express Serve Cash Back. This type of card is usually for those people who spend a lot of money. The best part about this card is that you will earn a cash back of 1% on all the purchases you make. Other than that there is no fee for online bills payments and no fee for ATM usage. But you will have to pay a monthly fee of $5.95 and fee on cash reloads that depends on the retailers but commonly it is $3.95 per load.
So these are the three types of cards and you can choose the best for your kid according to their usage.
3- TD Go Prepaid Visa
Another bank to get a prepaid card is TD Bank. If you want a prepaid card as a teen then you will get a Visa Buxx prepaid card. There are many benefits of getting a TD Go Prepaid Visa card from the TD Bank. You will not have to pay any monthly service fee or per purchase fee and with that you can enjoy free ATM usage from the same network. You will have to pay a dollar for the card reloads and if you remain inactive for a year and does not make any transactions then you will have to pay a $2.50 per month fee. Another benefit of opening an account with this bank is that you can subscribe the emails for your spending so that you can keep an account of your balance and spending.
One of the famous companies to get prepaid cards for your kids is FamZoo. The basic purpose of this company was to enable parents to teach their children about financial management. The FamZoo Prepaid Mastercard comes with many benefits. You can visit the ATM for free as many times as you can and there will be no fee for that. There will be no fee for reloading your card and you will not have to pay any fee for the purchases. Other than that, your monthly fee will be only 0.63 dollars, although it depends upon the number of cards and your subscription package.
This company has enabled kids from all the ages to open a bank account and keep a prepaid card. If you are kid is less than 13, you will have to be the legal cardholder while your kid can use that on your behalf and if your kid is elder than 13 than the account will be shared by one of a parent and a kid.
One of the best benefit that FamZoo provides is that you can track your spending easily. The parents or the child can see anytime where they have spent their money.
5- Akimbo Prepaid Mastercard
Another option to get your child a Mastercard is Akimbo Prepaid Mastercard. This card comes with many benefits and you can open a prepaid account for your desired purpose and that could be entertainment budget or your child’s budget. One of the benefits of Akimbo Prepaid Master card is that you will not have to pay any fee for purchase transactions. Other than that you will have to pay $1.98 ATM withdrawal fee and $0.99 fee on purchases that require pin usage. These options could be costly but it has some other best options that you can look upon.
6- Capital One
One of the best bank for getting a prepaid card for your teen is Capital One. Their transaction account named as Capital One’s Money account is designed for teens. You can get a Money debit Card with this account and this will help your kid to live in a budget. The Capital One’s Money account comes with many benefits. You will not have to pay any management fee, no debit card fee and free ATM services. Other than that there is no minimum requirement for your account balance. As a parent you have complete control of your kid’s account and you can look at the spending and balance at any time you want. This way this account and card gives an opportunity to the parents to teach their kids financial management skills.
So above I have discussed some of the best banks that you can use to get a prepaid or debit card for your kid this year. All come with different options that you can avail and it is up to you to decide which one you are taking. Do comment in the comment section below and let us know about your experiences of using these prepaid and debit cards.
Have a good day!