Prepaid Cards for Teens: Boon or Bane?

In today’s scenario, Gen Z has become more ‘woke’ when it comes to fashion, trends, shopping, and independence. Unlike millennials, Gen Zers are more able in terms of ‘going’ and ‘getting’. Teens majorly spend their pocket money or earnings on a wide array of things. They may include food, movies, school supplies, field trips, casual outings, clothes, accessories, video games, cosmetics, and much more. Having said that, shopping is not anymore, a means of fulfilling their needs, but a way to relieve stress, and to maintain an individual’s social standing. Gone are the days when parents used to shop for their children and the latter had to be ‘ok’ with it. These days, children want to take independent decisions and here prepaid cards for teens can play a crucial role.

Payments app for teens, like Fyp, can teach the art of saving to teens, make them feel independent of their own choices, and become overall financially responsible with prepaid cards. This step enables parents to make their children financially strong and effectively monitor their spending by keeping a check on the expenditures. Besides the aforementioned advantages, prepaid cards can benefit teens in many other ways: 

Lessons about Budgeting and Planning

In the case of credit cards, teens and adults seem to have a cash cushion and do not learn how to budget their spending. Also, after the fade of glorious balance, these innocent souls are burdened by the heavy boulder of ‘credit card bills.’ However, prepaid cards teach teens how to divide their account balance according to their month’s plans. 

These little plastic rectangles also teach a thing or two about planning. After setting the budget, the children can prioritize between their wants and needs. For example, if they are confused between a shiny pair of sandals and a piece of stationery for a project, or between the latest PlayStation and an upgraded laptop, then take informed decisions. These priorities will encourage them to save for their wants. 

Benefit for Parents

Yes, prepaid cards give a sense of freedom to the children and be their own masters. But how to ensure the safety and security of sensitive materials like cards and money? Through the Fyp app, parents and teens can block and unblock their physical cards anytime they wish in case of mishandling. Moreover, parents can leverage the app to teach their children about the value of money through the Mission feature. They can assign simple household tasks to the kids and pay them after completion.  

Prepaid cards for teens are making them more responsible towards financial planning, life, and themselves. So, why not give them a platform that gives them an opportunity to be more mature and prove to the world that they are not brats when it comes to money?  

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