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Credit Cards for Teenagers?
Nowadays, credit cards are freely available to teenagers, but unfortunately most of them lack the maturity and responsibility of making credit smart decisions. Credit card companies view this new untapped market as a potential goldmine due to its growing disposable income and high spending habits. Teenagers need to learn about credit usage from their parents who should find a way to communicate to their children the benefits and risks of using credit cards. Teaching money management skills today will help teenagers manage their finances in the future.
Visa Buxx Card for Teens
The new Visa Buxx card is a prepaid and rechargeable debit card that allow parents to deposit money into the account as needed. Teenagers can use the new card anywhere Visa debit cards are accepted. The users are also protected from any unauthorized purchases, making the card safer than carrying cash.
How it Works
Parents can apply for a Visa Buxx card for their teenagers and setup a pre-spending limit so that their children cannot overspend on their purchases. Parents can easily transfer money from their checking accounts or setup an automatic direct deposit, which transfers a requested amount on a specified date. The debit account is setup in such a way, that the parents and other authorized users can only add funds to the new account. This safeguards your child from receiving any unauthorized funds from strangers.
Benefits to Teenagers
The Visa Buxx debit card provides the teenagers the independence that they often crave. With this debit card, they are able to make responsible purchases without borrowing money from their parents or carrying cash around. The debit card also provide teens the flexibility of using the card anywhere Visa is accepted. Password protected online account allow teenagers to track their account activities. Finally, the Visa Buxx gives teens the tools to learn about credit and money management. With a pre-set spending limit, the teenagers have to create and follow a personal budget to ensure that they keep their spending within account limits.
Benefits to Parents
Parents can easily transfer money to the account through phone or internet giving them peace of mind knowing that they can provide instant cash in case of an emergency. This feature is most useful when the teens are away from home and face unexpected situations. Parents also appreciate the Visa Buxx features that allow them to stay in control of their teen’s spending habits. Parents have the power to close or suspend the Visa account if their teen’s spending gets out of hand. Parents can access the account online with a private access code which allows them to track account activity. This means Mom and Dad know exactly how their hard earned money is being spent. Visa Buxx debit card also provides convenience to parents because they no longer have to keep extra cash in hand or run to the nearest ATM every time their teen needs quick cash. Most importantly, Visa Buxx card provides the necessary financial education tools for teaching their teens the basic rules of money management.