Real World Money Management: Prepaid Cards Can Help Young Adults Avoid Financial Trouble

WASHINGTON – With high school and college graduations underway, many young adults are ready to take their next steps into the “real world.” Moving for a job or internship, thinking about the future and organizing financial logistics weigh heavily on recent graduates and their parents.

For many high school graduates headed to college, this will be their first time balancing a personal budget, setting aside money for textbooks, extracurricular activities and free time. This season can be even more overwhelming for recent college graduates, as many enter financial independence for the first time.

One of the easiest ways recent graduates and young adults can effectively manage their money is through prepaid cards and other convenient fintech options that help keep everything in order. The benefit of prepaid cards, especially relevant for young people, is the fact that they allow individuals participate in the modern, digital economy—even without a bank account or a credit card.

“Prepaid cards and other innovative payments options are simple, efficient and responsible means for young adults to effectively manage their budget and spending habits, especially as they head off to college or start a new job,” said Brian Tate, President and CEO of the Innovative Payments Association (IPA). “Everything from real time spending alerts to mobile wallets can help parents and students manage the day-to-day of spending and saving.”

Prepaid cards are flexible—allowing cardholders to use them anywhere debit cards are accepted. Additionally, cards help users avoid debt and overspending through easy to use features that allow for effective budgeting. Prepaid cards can also be loaded by individuals or friends and families to fit certain parameters and ensure spending is on the right track.

Because prepaid cards are protected by zero liability provisions, FDIC insurance and anti-overdraft protections, they can be a great tool for young adults starting out with little or no credit. Whatever your individual circumstances are, opting to utilize prepaid technology offers flexibility that can put many young people at ease. When selecting a prepaid card there are a multitude of great options, allowing you to pick one best suited to your needs.

“This is a busy, hectic time for teens, young adults and, of course, their parents. Luckily, prepaid technology is available to help new graduates and young adults get their financial footing in the world,” said Tate.

For more information,check out our infographic.