Teenagers can be a bit careless and naive when it comes to spending money. Credit cards might get misused by such young people that don't have much experience in the real world of personal finances. Parents have to bear the burden of credit card payments such as for penalties and interest charges. For example, overdraft fees are applied when a credit card account goes into a negative balance. The best way to manage the spending habits of teens is to use a prepaid credit card. Smart spending is achieved when there is a limited amount of money that could be spent within a time frame.
A prepaid card comes with various benefits that parents and their children can enjoy. For instance, such a card can be used to withdraw cash from thousands of ATM locations nationwide. Even better, no fees are charged for using the ATMs. Personal identification numbers are assigned to prepaid cards that are designed for smart and secure spending.
Online management can be applied to the account of a reloadable credit card. For example, money may be added or removed through electronic transfers such as from bank accounts and other wired methods. Real time mobile apps might also be helpful in monitoring the activity of a prepaid credit card. For example, text message alerts are sent to parents when their children spend hundreds of dollars on a single purchase from a refillable debit card. Parents may have the option to temporarily freeze an account of a card.