What's better: reloadable debit card or pre-paid credit card?
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Written on: 04.11.2009 [09:56]
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Saha
Saha
Topic creator
Posts: 3
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My daughter is getting to the age when she wants a little disposable income and I've agreed to charge her monthly allowance to a card so that she can shop in town / online etc. Would a reloadable debit card or a pre-paid credit card be more suitable for this purpose? |
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Written on: 13.11.2009 [16:12]
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Barker
Barker
Posts: 1
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If you're paying the bills, a reloadable debit card might be the cheaper option. Credit cards tend to incur annual fees (and others, but these shouldn't apply to the prepaid variety) whilst debit cards are often issued free of charge. This also gets your daughter in the habit of managing her own budget: she can negotiate the agreed debit limit with you. She may have 200 on her account and get a monthly spending limit of 50, but negotiate to get a limit of 70 one month when she wants to buy a special party outfit and 30 the next. On the other hand, if she wants to shop online you'll need to know whether the sites she would use would accept debit payments. |
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Written on: 17.11.2009 [11:31]
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Aston
Aston
Posts: 1
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When I was 13 I opened up my first account at Barclays with my mom. I see now that she wanted me to manage my money myself and wanted to teach me early which I found has really helped. She would give me money and I would put it in to my account to which I had a young persons cash card. This is probably a better method as she will be able to keep her account and in some respects I found that I spent less as I liked the idea of having money in my account. Perhaps it will be the same for your daughter. |
