A Student Debit Card Can Do The Job

by GuestPoster on January 27, 2012

Parents spend a lot of time worrying about their kids. Usually, it’s their health and maybe their social relationships that cause the most concern. But as they get older, their financial wellbeing comes into play because we know how important it is to know how to handle money and we’d like our youngsters to develop strong financial habits. But how can we teach them about finances and budgets in a way that will stick? Fortunately there’s a tool that can help, a student debit card.

Maybe you’ve heard about prepaid debit cards but if you haven’t, you should know that they’re great budgeting tools. A student debit card is nothing more than a specialized version of a prepaid debit card that’s marketed to parents as a way to get their kids started in the money management game. These cards come with all the same bells and whistles as other prepaid cards so they’re full-featured. But what exactly makes them such great learning tools?

Start with a Little Budgeting

The real hook with prepaid debit cards is that they need to be loaded first (usually by mom or dad) and then used. But once the balance is spent down, they must be loaded up again. That gives kids an extra fast lesson in budgeting their money. They need to make real choices if they want their cash to last. That means prioritizing and saying goodbye to impulse spending. That’s a huge lesson most of us learned the hard way.

Freedom Partnered with Responsibility

Youngsters love to exercise their freedom – especially college-age kids, and having a reloadable debit card gives them a measure of financial freedom they’ve never had before. Mom and dad aren’t looking over their shoulder anymore. They can make their own decisions. But with the power to make decisions comes a certain level of responsibility. Not only must young cardholders make more calculated spending decisions, but they must also do a little work to maintain the card; reload it, track the balance, etc. In short, all the kinds of things their parents have been doing for them in the past. It’s a solid lesson in adult responsibility.

Built-In Fail Safes

Since there isn’t any credit involved with a prepaid debit card, students can never spend themselves into a negative balance. That’s a big deal when you consider how easy it is for youngsters to fall into that particular bad habit with a credit card, and how detrimental a chunk of debt can be – especially on a college student who’s probably already piled up student loan debt. Plus, often these cards can be linked to a parent’s card which allows the parent to monitor them easily. That gives the parent a little extra peace of mind too.

If you’re looking for a great financial tool that can help your youngster learn the value of a buck, a student debit card is the way to go. Young cardholders get the freedom to use their cards just about anywhere while at the same time avoiding the perils of credit card overspending and debt. Kids learn to save up their money and then spend it instead of the other way around. That’s the kind of solid financial experience that will serve them well for the rest of their lives.

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