Helping my son manage his finances
Unfortunately my son has never truly understood the meaning of saving or budgeting your money. Ever since he was a little boy he has been frivolous with any money he can get his hands on, buying all sorts of things he didn’t even need, such as blenders, cowboy hats, and flower pots. I have tried in vain to get him to save with numerous methods and none have ever worked.
I was looking online for ideas on how to help children manage their money in a responsible way, when I came across prepaid credit cards. These cards could be used in the same way as a normal bank card but they don’t have the ability to let the user overspend as there is no credit facility or overdraft allowance.
I thought that one of these prepaid credit cards would be ideal for my son. I wanted to find one that had the ability to be topped up online or over the phone, as this meant I could add funds to his account for good behaviour, weekly allowance or if he was ever in an emergency. I asked other parents if they ever used these cards and was overwhelmed with the amount that did! I didn’t realise they were so popular. It seemed I was on to a winner.
When it arrived I sat him down to explain what prepaid credit cards were and why I was giving him one, so he properly understood what their purpose was. I told him that I would add his allowance to the card every Friday and he needed to use it in a responsible way to make sure the allowance lasted the week. I also told him that the card could be topped up online, at the same place I would be keeping an eye on his account. We agreed that if he managed not to overspend early on in the week I would load the card with a bonus payment every week.
I think the card made him feel much more adult as he started to organize his money very logically by budgeting each day what he could spend and was very strict with himself. He was like a changed man. I truly believe that prepaid credit cards are the way forward in helping teenagers to learn about managing their finances!
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