I was trying to stick to a budget, and having difficulties with impulse spending. So I was thinking of trying a prepaid Mastercard. I think it might be a great tool for mad money budgeting. I can load it up with a specific dollar amount, and that way, when it is gone I can't spend anymore. I could reload it each month with monetary limit and it would help curb that impulse buying. Many of the cards can be reloaded a local chain stores, which could be very convenient. This would be great for those teenagers who (as I remember) are always asking for money. They could use this card just like a credit card, but because it is a prepaid credit card, there is a limit to their spending.
The only thing that I am not completely sold on is the processing fees for the prepaid debit cards. Seems like you are spending extra money, just to activate the card. Then every month there is a processing fee on top of that. It could be a good tool for someone who has let their finances get out of control, this would be a good to rein them back in. It is like voice in the back of your head suggesting you rethink that purchase, before spending your hard earned money on yet another black sweater. If a prepaid debit card makes you think twice about spending, perhaps it is worth the few extra dollars for the fees!
2 comments:
sometimes i have a really hard time sticking to a budget. luckily my husband keeps me in line :D
i think that a prepaid card is a good idea. or you could always open up another checking account and transer your sepending money or whatever into that. then you wouldn't have to pay the fees for those prepaid cards.
I think I need a prepaid card too!!! I tend to go crazy when I buy supplies for my shop! :)
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