BANK FREEDOM PREPAID DEBIT CARD ARTICLE THREE

Prepaid Debit Cards - Additional resource page provides informative article information about your Bank Freedom Prepaid MasterCard^® card and prepaid debit cards. If you find this collection of prepaid debit cards articles helpful and would like to comment please contact us.

Prepaid Debit Card Article #3:

Prepaid Debit Cards Teach Teens Good Money Skills

On day one, college bound teenagers are bombarded with free offers, airline miles, and t-shirts from credit card companies seeking their business. During their first year of college, the typical freshman will amass $1,500 in credit card debt either with or without your knowledge, according to college lender Nellie Mae.

There is another choice for your college student - prepaid debit cards. However, education is critical. Without proper education, the allure of a new credit card may be too tempting to resist. Few newly freed teenagers have the discipline to resist the trappings of credit cards. Therefore, you must take the time to educate them prior to their college ventures. Prepaid debit cards offer an excellent tool to give your student the flexibility to make plastic purchases without the inherent danger of going into debit so early in their life.

Prepaid debit cards allow you to manage their budget without exposing them or you to possible credit entanglements. Prepaid debit cards have the following excellent characteristics:

• No interest or late fees – Since no money is borrowed, there is no interest and no payments to make.
• No NSF or overdraft fees – Unlike a standard checking account, most prepaid debit cards do not allow for a negative balance. If the cardholder tries to make a purchase for more than what is on the card, the transaction is declined. And unlike banking “overdraft convenience services”, there usually is no fee for being turned down.
• Anyone can get prepaid debit card*, all you need is a valid address and identification. Since there are no credit, banking, and employment checks, the approval is guaranteed.
• Used anyway MasterCard and VISA^® debit cards are Accepted. Like credit cards, prepaid debit cards are accepted at millions of locations.
• Personalized and reloadable – Unlike gift cards, prepaid debit cards come with your name on the card. In addition, they allow you to place money on the card over and over. This is great for college students who need a weekly distribution of funds for living expenses.
• Direct deposit – Most prepaid debit cards offer a great feature of direct deposit. Many college students have part-time jobs. If your student is working while attending school, have them deposit their paycheck on the prepaid debit card. It is significantly more convenient and cost effective than cashing them at the issuing bank or using a check cashing service.

Be sure to get a prepaid debit card that allows for online access so you can monitor your child's spending along with them. Prepaid debit cards teach children to live within their means and set the groundwork for responsible money management.

When making purchases with prepaid debit cards, the money is deducted from the prepaid card account. When the funds run low, add cash by transferring funds from a linked checking or savings account to their card. The beauty of prepaid debit cards is that your funds are safe. If your student overdraws the card, it simply declines the purchase. More importantly, you will be able to track where they are spending their money.

Prepaid debit cards allow parents to track their teens' spending closely. For example, the Bank Freedom Prepaid MasterCard www.BankFreedom.com sends cardholders email or text-message alerts on their spending activity.

Choose a prepaid debit card with low or no fees. The Bank Freedom Prepaid MasterCard has Free Card Issuance and no monthly fee with direct deposit of $500 or more each month. By comparison, we feel it is the best prepaid debit card offered today.

Remember, using prepaid debit cards to manage your college student’s finances offers convenience and safety for less money than a standard checking account. With online tracking, you are sure to get your teen on the right path.

©2008 www.BankFreedom.com Bank Freedom Prepaid MasterCard

Additional Articles

1. Prepaid Debit Cards Safeguard Your Money

2. Prepaid Debit Cards Are Just The Financial Tool You Need