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The advantages of prepaid cards for teens

Apr 06, 2013 Dave King

The prepaid card industry has experienced exponential growth in recent years, while these products have become especially popular among the growing population of unbanked and underbanked households in the United States. Parents and young adults represent other demographics that have started to use prepaid cards in greater numbers throughout the past several years.

Money Talks News recently explained some of the reasons why prepaid cards are an excellent choice for pre-teens, and how parents are viewing the products as an opportunity to teach their kids financial responsibility without the traditional risks. Giving a teen a credit card with high limits could spell disaster, especially when they have not yet had a banking account.

However, the source asserted that prepaid cards do not come with the risk of falling into debt because they have pre-determined credit. Money Talks News added that parents should look for prepaid cards that come with the best perks and lowest fees, as there is currently a large degree of variance in the industry.

Some prepaid card companies are taking progressive approaches to marketing and branding, such as one that has Justin Bieber as a spokesperson.