Is a Prepaid Card Right for You?

Is a Prepaid Card Right for You?

We won’t shock anyone by saying this, but we’re big fans of prepaid cards and the options they allow consumers. At the same time, we’re aware that consumers may be unsure whether a prepaid card is right for them; after all, not everyone knows a lot about prepaid cards.

This blog aims to change that, and today we’re going to give you some things to consider when determining if a prepaid card is right for you. A prepaid card could be right for you if ...

1. You’ve struggled with accidental overspending

If you’ve ever picked up a bill at month’s end and have been shocked by the final dollar amount, a prepaid card can help. With a prepaid card you put a set amount of money on the card at intervals of your choosing. This allows you an ongoing transparency to your money because you know not only how much money you placed on your card but how quickly you went through it. It also makes it easier to manage your spending because you are spending down to a fixed amount of your own choosing.

2. You need to set an allowance or balance for another person

If you need to establish a fixed expense account for someone else, a prepaid card can help. Use the card to set a budget for your house cleaner or child’s nanny and they can spend money from the account as they need to without having to come back to you for more. You can also use the card to finance your children’s allowance. This allows them to take their first steps in managing a budget of their own while you help guide them.

3. You have a child who could benefit from this first experience in money management

While a prepaid card can be an easy way to walk your children through their first money management experience using the allowance you provide, the card can be a useful tool for older children as well. Teens, for example, may be able to better manage their cash flow by having a portion of their paycheck loaded onto the card. This allows them to more easily budget their finances and gives them the satisfaction of a job well done as they refill their card with their hard-earned money.

4. You need help saving for a big expense

spring break trip, a new car or even a wedding; the things you look forward to most are seldom inexpensive. You must save to make these events a reality and a prepaid card can help. Use your card as a budgeting tool by figuring out how much you must spend each month to maintain your lifestyle and set that amount on the card. From there you can put the rest of your money into savings. Stick to the budget on your card — and even lower it if possible — and you’ll reach your goal before you know it.

There are many reasons to utilize a prepaid card, but the most important reason is that you're able to match the tool to your needs. If any of the above needs match a challenge you face, a prepaid card may be the right choice for you. Click here to learn more about prepaid cards today.