The new year represents a new start for many of us and is the perfect time to commit to getting on top of your family’s finances. From day-to-day budgeting to saving for holidays and large expenses, family prepaid cards can be an incredibly useful tool to help you get on top of your financial health in 2018 and beyond. Read on for our best family budgeting tips and how to get the most out of a prepaid card.
Managing pocket money
If you have children or teens, you’re probably used to the endless requests for pocket money or treats. When your kid’s pocket money disappears in the blink of an eye, a prepaid card for teens is a great tool to help teach them about budgeting and money management.
If your child is over 18, they can apply for their own icount card, but if they’re younger, you’ll be able to apply for one yourself and allow your child to use it. Prepaid cards are great as they can be used for online shopping, as well as on the high street, and are just as safe as everyday debit cards. As you can only spend what’s been loaded onto the card, there’s no risk of your child going on a spending spree. Not only that, they’ll learn how to budget and make their pocket money last, too!
Saving for holidays
Saving for holidays or large expenses is tough and it’s all too tempting to dip into your savings pot if you’re a little short on cash towards the end of the month. By putting money onto a prepaid card each month, you’ll be able to save up for the holiday you’ve always wanted. As the money is on a separate card to the one linked to your everyday bank account, you’re less likely to use it, and it is just as safe as using a regular debit card.
When it comes to booking your holiday or spending overseas, the best prepaid cards to use abroad offer benefits that make them a wiser choice than cash, debit or credit cards.
With an icount prepaid Mastercard®, you’re able to get Euro and Dollar currency cards via Cashplus, (who service the icount card) at no extra cost, with great exchange rates and no commision fees. There are also no fees for using ATMs abroad, so you won’t be caught out by the large fees imposed by some high street banks. If you lose your card whilst on holiday, you’re able to get a replacement card with your money loaded on it – no more worrying about misplacing your purse or wallet whilst abroad!
Budgeting for weekly spending
If you struggle to stick to your weekly spending budget, you’re certainly not alone! Small purchases here and there can quickly add up and leave you short of money by the time the weekend rolls around.
Prepaid cards can help you to stick to weekly spending budgets, making sure that you’re not feeling the pinch at the end of the month. Simply work out what your weekly budget is and load this amount onto your prepaid card. Use your card for day-to-day spending and you won’t be able to spend more than the amount you’ve loaded. You’ll also receive text updates to let you know how much you have remaining on the card. As it’s separate to your bank account, you won’t be tempted to dip into other funds and spend more than you should.
Our money guides are a fantastic place to start if you need some help managing your money, with simple tips and advice to help you get on top of your day-to-day spending.
Building your financial health
If you haven’t been able to build a credit history, or you have a poor rating due to bankruptcy or CCJs, prepaid cards can help you to build a healthy credit score. With tools such as the Creditbuilder(™), your payments are reported to credit agencies. When you make payments on time, could to build your credit profile and increase your credit score.
Having a healthy credit profile can increase your credit score, making you more likely to be accepted when applying for loans, credit cards or mortgages in the future.
If you’re interested in using a prepaid card to help your family’s finances this year, take a look at the benefits of our prepaid Mastercard® and apply today.