The National Foundation for Credit Counseling promotes prepaid cards as a way for students to control spending and as a good introduction to managing money for those with little experience.
Additionally, the Network Branded Prepaid Card Association offers tips for students and parents considering the cards. Campus cards are the most convenient since they serve several purposes, such as a spot to park a student’s financial aid funds as well as providing a student quick access to his funds.
For example, if the student plans to use the campus card to buy meals, books, student services and receive financial aid, the card can help keep finances organized in one place.
“As they become more widely adopted and offer increasing benefits specifically for young people, prepaid cards are fast becoming favorites of college students,” says a spokesperson for the prepaid card group. “The cards offer easy access to money needed for life on their own, encourage budgeting and allow students to avoid debt and interest. Like all financial services, it’s important to examine all the options available and make the right choice depending on a student’s needs.”
Adds a spokesperson for the credit counseling organization: “For many young people, college is the first time that they will independently manage their money without their parents. It is particularly important that college students understand the new financial tools available.”
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