- You can make purchases and pay bills online
- Prepaid cards provide access to Automatic Teller Machines (ATM)
These are also probably the best means of introducing money management to a young adult.
With funds that are finite (and therefore easily controlled), they provide parents the means to convey the foundations of finances, thereby setting their children up for reality.
Consumers’ Reasons for Using Prepaid Cards
Last year, PEW conducted a survey to ascertain these reasons more specifically. Their results are based on the responses for the major reasons why (613) people use prepaid cards in a couple key areas including: controlling spending, controlling fees, and making purchases:
- Avoiding credit card debt 52%
- Helping you not spend more money than you actually have 51%
- Dividing your spending into budget categories 30%
- Avoiding overdraft fees 46%
- Avoiding check-cashing fees 38%
- Making purchases online and other places that don’t accept cash 51%
- Allowing you to conduct transactions more anonymously 35%
As the “features, services, and protections traditionally associated with bank accounts are available on many prepaid cards” these can easily fit into the overall supervision of finances, at any stage in life – whether as a college student or a retiree traveling the world.
There is more than one way to access your Facebook’s newsfeed and status updates. There is more than just one component of a healthy approach to financial independence.
The information contained in this article and any other article do not reflect the views of rapid! PayCard®.