Children could learn lessons about managing money from pre-paid Visa cards'
Pre-paid Visa cards could teach children valuable lessons about managing their money, according to a personal finance writer.
Children could learn lessons about managing money from pre-paid Visa cards'”
Szu Ping Chan, personal finance writer at Lovemoney.com, suggested that pre-paid cards are a good first step for children to manage their own money because they are given the freedom to shop online but they are unable to run up debt.
This is because users are only able to spend the money they have loaded onto the cards.
Ms Ping Chan's comments follow the news from mobile phone provider O2 that it will be launching fee free pre-paid Visa cads in partnership with NatWest.
The cards are designed to help people control their finances by only allowing them to spend only what they have.
"Because you do get text messages when you spend your money you can always keep track [of your balance]. Kids - obviously this is a generalisation here - but they might spend away and not realise it and obviously if they do try and go over their limit they won't be able to spend on it at all," Ms Ping Chan commented.
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