As the summer months come to an end, students and parents alike are turning their focus toward back-to-school shopping and preparation. For students entering high school, incoming college freshman, and young professionals living on their own for the first time, prepaid cards can be a helpful tool to promote financial responsibility while teaching valuable budgeting skills critical to future success.
As our economy continues to digitize, students increasingly need new ways to interact with the online marketplace. Prepaid cards and innovative payments solutions offer a safe way for students and young adults to take advantage of everything this new economy has to offer. Unlike other kinds of accounts, prepaid cards do not require a credit check, allowing young people without long financial histories to leverage their money. No wonder approximately 45 percent of millennials own a general purpose reloadable prepaid card.
As high school and college students transition to adulthood, learning financial literacy skills early on can make a world of difference. Prepaid cards allow students to learn the budgeting techniques they need to thrive. Simple text balance alerts and a transparent menu of fees give students the tools to easily track their expenses. Additionally, many prepaid cards come FDIC insured and are protected by zero-liability policies, enabling students and young adults to spend safely and responsibly.
Parents can also keep an eye out on spending habits and load cards online, making prepaid a quick and convenient choice for students away from home. And, without a risk of overdraft, students and parents do not need to worry about falling down the rabbit-hole of debt that can come with traditional credit cards.
Prepaid cards are a valuable tool in your back-to-school arsenal. Learn more with our infographic.
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