From the amazing personal finance blogger Miranda Marquit comes this Equifax Finance post about the pros and cons of prepaid debit cards. It is as simple as it sounds, a debit card that is endorsed by major credit cards that you load up with as much or as little money as you'd like. Out of all of the benefits though, the one that stands out the most is as an instructional tool for money management and your kids.


Prepaid debit cards are a great way to safely teach and moderate your children's budget for the following reasons:

  • You can put a set amount on the card and take away the ability to over-draft the account.
  • You can automatically have the card re-fill with a monthly, weekly or yearly allowance.

For some of the drawbacks of prepaid debit cards and other budget parenting tips, read the full post on the Equifax Finance blog.

 



Ilyce Glink is the author of several books, including 100 Questions Every First-Time Home Buyer Should Ask and Buy, Close, Move In!. She blogs about money and real estate at ThinkGlink.com, The Equifax Personal Finance Blogand CBS Moneywatch She is Chief Content Strategist at RealtyJoin.com, a community for real estate investors.

 

 
 
Posted by Ilyce Glink on 03/05/2012 01:53 PM   Comments (3)   personal finance, money management  
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3 Comments on What Are The Perks of Prepaid Debit Cards?

MAR
05
2012
386,595 Points Outside Blog

Hmm, never thought about using it as a budgeting tool for kids. Might have to consider that, but I do not use a debit card at all.
2:30pm • #1
MAR
06
2012
1,021,127 Points 65 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Ilyce * these are not the same with a credit card issued DEBIT card from a bank - my 60+ year old retired teacher sister thinks they are the same and they are NOT
3:25am • #2
339,232 Points 5 Featured Posts

They are different but are both issued from a bank, I hope your sister learned which to use for which occasion.
12:18pm • #3


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Ilyce Glink

Chicago, IL

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