Having and raising a family is one of the greatest gifts that a person can have, but effective parenting comes with its own set of challenges. As a parent it is important to teach your child lessons that will help and benefit them throughout their lives and finding the right resources available can also benefit parents. As a child grows there are lessons they learn at home such as doing their chores and getting and using their allowances correctly which will serve as the basis of how they will conduct future financial transactions.
The teenage years are a time marked by extreme physical and mental development and this is a great time for parents to instill some good virtues into their child. One area a child can benefit from is learning effective financial skills. A parent can utilize this time to teach their child some financial basic like opening a checking account and balancing a checkbook. Even though your child may have some problems in the beginning things like a bounced check will teach them that they must keep a certain amount of money in their accounts so that they won’t overextend. Having something like a prepaid credit card can also help your child build a line of credit which will help them in future financial situations.
One important benefit of having a prepaid credit card for your child is the financial discipline it will teach. They will learn that they are only able to spend an amount that is available in their accounts, which will control what they spend. There is no bill to pay or dept accumulated and if lost or stolen they can’t be used without a pin number. This is a perfect way for parents to be able to monitor the spending habits of an older teen or college student still residing at home.