Nearly everyone has tugged the hem of a parent’s garment or cautiously tapped them on the shoulder and, with hand extended, asked for their allowance. Long has been the tradition for parents to mete out a little cash as reward or payment for good behavior and completion of chores. But we are moving into a world where cash is no longer the standard operating currency. So, more and more, prepaid credit cards are becoming a viable, and desirable, option.

A prepaid credit card mimics a debit account card, allowing the user, for this example a well-behaved child, to draw only on the money existing in the account. A parent can simply open an account, deposit money, and after paying a small fee, usually five to ten dollars, hand the card off to the youngster confident in the knowledge that the child’s spending is limited. As children under eighteen don’t qualify for stand-alone credit cards, these cards are perfect for the teen set.
An added value of prepaid cards is that they teach children the responsibilities of using a credit card without the dangers inherent in handing them one of yours. Children can track how much they have in the account and determine which purchases seem relevant to their lives. Lessons on budget management, thrift, and saving abound.

Holidays and birthdays also make splendid occasions to bestow a prepaid card upon a child. As most adult know, shopping for kids is a precarious and often unrewarding experience. A prepaid card allows the child the freedom to get just what they’ve always wanted.

Prepaid cards are issued by most major credit card companies, making it easy to check either online or with your bank to set up an account. The happiness and security of your child’s finances will be your reward.