Prepaid Debit Cards Help Children Budget

Published on 1 January 1970 by Raffick Marday

Parents are concerned their children are more likely to land into debt despite currently growing up in a more cautious financial environment research reveals.

If you are keen to help your children learn the value of budgeting a prepaid debit card can be taken out by under-18s.

A new study by M&S Money has showed a quarter of mums and dads across the country say it will be easier for their children to get into debt despite the credit crunch.

Furthermore, a third of parents believe their children are less equipped to manage their money than they were growing up.

“Having been through one of the most complicated couple of years for family finances the importance of getting things right for the future has never been more important,” said Colin Kersley, M&S Money’s chief executive.

“Too many of today’s parents are not yet confident about the nation’s efforts to improve financial awareness and ability for the next generation.”

Additionally, 19 percent of parents surveyed said their children will be ill equipped to understand their own finances due to a lack of guidance at schools and too much jargon on the high street.

While almost a third believe sharing their own experiences with their offspring can help their chances a fifth of parents said their mothers and fathers had the most influence over how they manage their money.

Prepaid Debit Cards

Prepaid debit cards are good way to help your child learn the value of budgeting and encourage them to monitor where they have spent their money to then plan exactly what they should spend it on.

Pocket money or a small income can be deposited onto the card and it does not need to be linked to a bank account if a child does not have one.

As the card does not allow the user to spend more than is preloaded onto it there is no chance of the user getting into debt.

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