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The perfect solution if you don’t trust your kid with credit cards

Your child isn’t exactly a child anymore—he or she is all grown up, and perhaps getting ready to move out for the first time and go off to college. Although the transition to adulthood might mean their first credit card, perhaps you’re a little hesitant about the whole thing—especially if you need to cosign. There are a lot of benefits that credit cards can offer, but if you’re reluctant to get your kid a traditional credit card, there is one option that can be the ideal solution: a prepaid card. With a prepaid card, your kid can still reap the benefits of a credit card, yet without the risks. Consider the following:


Whether you have kids that still live with you, or they have gone off to college and you’re still offering financial support, there’s nothing more convenient than being able to reload more money onto their card. In just moments, they can have the available funds they need, and it sure beats sending out a check or withdrawing cash. And it’s not only convenient for you, but it’s convenient for them. Because their prepaid card is accepted anywhere that regular credit cards are accepted, they can use it in the same way; for example, if they need to order their textbooks online, they can simply do so with their prepaid card.


Not only is shopping online or paying for expensive purchases much easier with a prepaid card, but it’s safer, too. If your kid doesn’t have any type of credit card and is just carrying around cash—especially in large amounts—this can be unsafe. Cash can easily get lost or stolen, whereas a single prepaid card is easier to keep track of, and can be reported lost if it goes missing. Once cash is lost, it’s usually gone forever.

Money management

When someone moves out on their own first time and is just starting to get a taste of the real world, it can be difficult to know how to properly budget and manage money. Because you can determine just how much money goes onto their prepaid card, it can teach them healthy spending habits at a younger age. If you only load a specific amount and you stick to a strict reloading schedule, they will need to understand how to budget properly in order to make that money last until they receive more again. This eventually helps to eliminate careless spending, while also offering the safety and convenience of a credit card.

Why college students might want to avoid credit cards

One of the most obvious disadvantages of why someone shouldn’t open up a credit card when they’re too young is that they might not be financially responsible enough to handle it. Far too many people get into credit card debt at such a young age, and these are mistakes that can haunt them for years to come. This is especially because many students don’t have secure employment yet, and are unable to pay off the charges they make, or barely get by making only the minimum required payments each month.

Another thing to consider is that many college kids have student loans in order to help pay for their tuition. This already means that unless they qualify for loan forgiveness, they will have thousands of dollars to pay back after graduation. The last thing anyone in this position needs is a ton of credit card debt on top of it all. As such, many parents agree that prepaid cards are a great way to help their kids gain a sense of financial independence. If you’re ready to get your kid a prepaid card from JG Wentworth, fill out our quick online form today.


Nothing above is meant to provide financial, tax, or legal advice. You should meet with appropriate professionals for such services.