Are Prepaid Debit Cards Worth Buying Into?
If you're thinking about getting a prepaid debit card like the one the Kardashian sisters launched a while ago you should know the whole deal behind it. While the reality stars' venture ultimately failed, there are plenty of other cards out there that are targeting teens. However, MyBankTracker.com CEO Alex Matjanec says they may not be the best way to go.
"I have always been intrigued as to why consumers would go the prepaid card direction versus a traditional credit or debit card," he says. "For the teen demographic that these cards mainly target, products such as a savings or checking account should not be an issue and opening a kids or student checking out is definitely a more appropriate option."
Prepaid cards can help you to learn how to be financially independent, but regular debit cards can offer the same benefits. If you're into buying things without having to carry cash, or interested in being able to track your purchases, think about opening up a joint checking account with your parents or looking into credit card options, Alex suggests.
Prepaid cards can also come with fees that you should be wary about. According to My Bank Tracker, more than 75 percent have a set-up fee ranging from $6 to $15, and come with loading fees as well as monthly fees. Depending on your usage, you could rack up $70 or more in yearly fees, and that's just money down the drain.
So, while that prepaid card may come with your favorite celebrity's face on it, you might want to think twice before buying into it. For more wallet-friendly tips, visit MyBankTracker.com.