Kids could learn better financial management with prepaid credit cards

According to a recent report many parents may find that prepaid credit cards are a good way to teach their kids effective financial management and responsibility, and this could help to increase the prepaid credit card market in terms of popularity and value.

Reports have indicated that the prepaid credit card market is already growing quickly, with many people turning to these cards if and when they cannot get a standard credit card due to tighter credit conditions stemming from the global credit crunch or if they want to enjoy the convenience and ease of credit card use without the risk of getting into huge levels of debt.

One industry official said: “Because most adults qualify for credit and are comfortable purchasing with credit cards, they aren’t necessarily the ideal target for prepaid debit cards. But teenagers, who may not qualify for traditional credit cards and whose parents are likely uncomfortable with them spending on credit, are the perfect target for prepaid debit.”

Another stated: “Because prepaid cards are a safe way to give teens experience using plastic, they appeal to both parents and teens alike. Card issuers and banks might look at prepaid debit as a way to build brand loyalty and trust from an early age, tapping into teen spending today and adult spending and credit tomorrow.”