Prepaid for Teenagers can help younger people gain valuable experience of managing their finances, which can serve them for life.
What’s the best prepaid card for teenagers?
As the world continues to shift towards online and electronic payments, prepaid cards (the term 'credit', although popular in describing them, is very misleading as these cards do not offer any credit) can offer children and teenagers a great way to start using plastic for their transactions.
Many prepaid cards are available with contactless technology (which is becoming ever more important) and a select few also give parents the option to select the product types and categories the cards can be used to purchase with.
Getting the best prepaid card, as with many financial products, really depends on your circumstances. Before comparing prepaid credit cards it's best to have a think about what you, or what the minor you are acquiring the card for, might need to use the card for. If they are likely to be withdrawing cash from ATMs regularly, then your choice of products will be very different than if they use the product for online shopping and games.
Compare Prepaid Cards for Teenagers
Once you have a good understanding of how the card is likely to be used, you are in a good position to start comparing products. Remember, comparing products means assessing them impartially. There are a number of big brands operating in the UK prepaid card sector, but the majority of the market is still dominated by smaller players. Just because you haven't heard of a particular issuer, don't be put off, but instead compare the different cards on offer based on specific product attributes, rather than picking your favourite brand.
To help you compare, we have compiled a list of key attributes you might want to compare when assessing products. Also remember to use our prepaid card glossary if there is any terminology you don't understand, and if we have not included a term you are looking for, please contact us.
Prepaid Card Fees
Monthly fees - payable every month for the use of the card
Load fees - payable every time you load funds on to your card
ATM fees - payable every time you take money out from an ATM
Transaction fees - payable every time you purchase something using your card
Minimum and maximum loads - this may be insufficient for your child's spending
Dormancy fees - this is usually a monthly fee which becomes payable if you do not use your card for a length of time
Banking functionality - do they offer contactless capabilities, Direct Debits, Standing Orders, payments to other accounts etc
If you are shopping for a teen who is going abroad, you might be better off looking for a specific prepaid currcency card rather than a teen prepaid product. Equally, if you are 18 or over, you might want to consider getting a credit building prepaid card to help you start building your credit score.