Prepaid Cards Help Students Gain Financial Footing

WASHINGTON–(BUSINESS WIRE)–Let’s face it, college students are juggling a lot between classes,
internships, and extracurricular activities. On top of that, many are
also managing the financial stresses of life for the first time.
Balancing a budget, paying for books, and groceries, and learning to
limit expenses like coffee, movies, and clothes can be a lot to take on.
Luckily, many students and parents turn to prepaid cards to help
alleviate the stress and avoid long-term damage from overspending.

“More and more young adults are recognizing the benefits of prepaid
cards, including helping them to manage money and participate in our
card-based economy,” said Brad Fauss, president and CEO of the Network
Branded Prepaid Card Association
(NBPCA). “As the marketplace
expands with new product offerings, consumers have a wide range of
prepaid options to choose from, making it easier than ever to find an
account that fits their needs.”

Prepaid cards can be used anywhere debit cards are accepted, which means
they can be used virtually anywhere. Students are safer since they don’t
have to carry cash, and they are able to pay online or at locations
where cash may not be an option.

Additionally, both parents and students can add funds to the card at
retail locations, through direct deposit or online. This can be done on
a regular basis or as the need arises to assist with large expenses or
make ends meet at the end of the month or semester.

Since parents or students can control how much money is added to the
cards, students can learn how to effectively budget. And unlike credit
cards, there is no risk of students accruing large amounts of debt or
permanently harming their credit. Additionally, students will always
have the comfort of knowing that the funds on their prepaid card are
protected by the zero liability protections offered by the card brands.
Many cards also come with FDIC insurance.

There is a wide variety of prepaid cards on the market, so students and
parents can shop around to find the one that best fits their needs. For
example, students studying abroad can find options that provide
flexibility and can help limit foreign transaction fees. Still, others
might choose cards with options like bill-pay or ATM access.

Finally, prepaid cards do not require a credit check, which makes them a
great tool for students who have little or bad credit.

Overall, prepaid cards offer great benefits to students, including
giving them the tools they need to begin their adult life on strong
financial footing.

Contacts

Network Branded Prepaid Card Association
Keisha Vaughan,
202-617-3076
media@nbpca.org