Students are among those who are prone to falling short of their budget almost all the time. The reasons behind being in such a situation are not surprising, however. First, most of them receive an allowance from their parents regularly. Second, if they happen to be working while studying, their paycheck is not enough to suffice their needs. Third, they are often prone to unplanned spending, such as doing a project or shopping and dining out with friends.
It is, therefore, a growing need for students to learn how to spend their money wisely, and the best prepaid cards in the market can help them do that. Prepaid cards also provide them with various benefits they would have never even imagined, such as:
- Theft protection.
Having your money stolen is one of the most heart-wrenching experiences you may face as a student. When someone robs you, you can’t literally do anything about it. These days, theft not only occurs when someone forcefully takes your cash away; it may also happen when a person hacks into your debit card or credit card using your personal details.
The best prepaid cards meanwhile save you from such situations. You can store your allowance by loading up your card and use it for various purposes without having to withdraw hard cash. Hackers can’t get into your card as well since it is not linked to your bank account.
- Safe storage.
Prepaid cards are helpful in safekeeping your money. Keeping cash in your wallet only tempts you to spend on various things you don’t really need. It’s mainly because you see and know that you have actual money at hand.
However, when you store your money on a prepaid card, your funds are kept safe because you are reminded that once you run out of available balance, you can no longer get by until the next time you receive your allowance.
You can then use your prepaid card to purchase just your necessities, such as groceries, transportation, or payments wherein your card can be used.
- You can use one card for savings and another card for daily expenses.
Prepaid cards can also be used for budget allocation. If you are trying to save money but don’t have a bank account, then you can load credits on your prepaid card instead. You can use one card solely as a piggy bank, until such time that you need to spend its credits.
Meanwhile, you can dedicate another prepaid card for your daily expenses without touching the funds you intend for savings.
- You can maintain a good credit standing.
A lot of students fall into bad credit due to outstanding loans and maxing out credit cards that are under their name. On the other hand, if you use a prepaid card to pay for your expenses, you can only spend to a specific limit, i.e., your card’s available balance.
Since prepaid cards are not linked to a bank account, you are not subject to penalties or to incurring a bad credit rating. A good credit standing thus gives you a clean slate once you start opening bank accounts, applying for loans, or securing a credit card in the future.