Days are gone when children used to get cash in the form of pocket money. Nowadays children use online transactions to order everything. But sharing credit and debit card details with your kids can prove to be dangerous for you. Keeping all these problems in mind, companies have started Prepaid cards facilities for kids and teens.
Prepaid cards for teens can be compared to debit cards, they allow young ones to make transactions without using cash. Moreover, these cards provide parental restrictions and monitoring facilities to prevent kids from making errors and instructional opportunities to teach them financial literacy. With built-in training and automation, they can also teach young individuals how to spend, save, and invest responsibly.
Why choose these cards?
- Sharing credit and debit card credentials with your children can prove to be dangerous for you. You do not know which website they are sharing the card details with. Even if the sites are authentic, the process remains risky. Moreover, these cards phase out the need to share OTP every time your kid make transaction with your card.
- Moreover, like any other physical card, these cards can be used in shops, malls and e-commerce websites. Additionally, these are capable of making contactless QR codes and NFC payments.
Also read: 8 Reasons To Use Credit Cards
- These cards are great to keep a parental check on children spending as they can only transact with the amount you transfer to these cards. Therefore, there is nothing to worry too much about the security of this card. As a user or a parent, you can not only set the card’s spending limit but also track the amount spent on the card.
- These cards come with certain limitations like your child will not be able to set any standing instruction for direct debit. Besides, the card will be blocked in certain places, such as gambling sites, casinos, off-licenses, and bars.
- These cards introduce your child to banking and financial management. These are excellent instruments to teach your child the basics of banking before they reach adulthood.
Are these cards free of cost?
Technically no, however, the companies offer you spending points which you can redeem to order a physical card or use these points somewhere else. Otherwise, you can simply order a physical card by paying a nominal amount.
Everyday new entrants are coming to offer such cards. As of now, some popular prepaid cards in India are Fampay, Omnicard, Fyp, Junio. You can simply go to the app store on your device and download these apps.