A Pre-Paid Card Could Be a Viable Option for your New College Student
Many parents are unsure as to how they should go about sending money to their children when they go off to college, and one of the best new options seems to be a pre-paid card. Although plenty of college students would like to think that getting a new credit card would be a good idea at this point in their lives, most students are simply not ready for that kind of responsibility. Instead of allowing your child to go into debt before they even have a real job, you should think about getting a prepaid card for them to use for their regular expenses. You will be able to track how much money your college student is spending on a regular basis, and you will also be able to let them know when they are spending too much on certain items.
A college student with secured credit card is not going to be able to run into any real problems with their credit at a young age because there isn’t really anything that they could do wrong. There is no credit limit to worry about because the only limit on a pre-paid card is the amount of money that you decide to put on it. This would be a great time to teach your son or daughter how to balance their budget by giving them a certain amount of money on a regular basis. When your child only has a certain amount of money for food, beer and other expenses on a weekly basis, they will become more conscious of how they spend their money.
College is a learning experience in many different ways, so a college student with secured credit card is definitely going to be able to learn a bit about themselves when they start using that card. There is no better time to learn about personal finance and budgeting because your son or daughter is going to have a good bit of money to handle once they graduate. Hopefully, they will be able to get a good paying job out of college that will force them to learn rather quickly. Learning how to budget one’s income should not be viewed as a bad thing because it is better to have funds to control rather than not having any money at all.
Everyone knows that a pre-paid card is a great tool to use when teaching their children about money, but it can also be a lifesaver in tough situations. Emergency situations can pop up from time to time at college, so you need to be able to transfer money to your child immediately when those problems pop up. A college student with secured credit card is not going to have to worry about being left with no money for food or a trip to the doctor’s office because his or her parents will always be able to transfer some money over instantly.