Parents, with the laudable goal of teaching financial
responsibility, hand prepaid cards to their kids as a way to
encourage restraint while still permitting freedom. And prepaid
debit has a lot to recommend it. It's convenient, so kids don't
have to fumble for change when buying sarsaparilla from the corner
grocery store. It won't give kids access to lines of credit, or
saddle them with a bad credit score
before they can drive.
But for all the advantages of prepaid debit cards for kids, parents
are almost always better off choosing a regular checking account.
Read More »