Should I use a Pre-paid Card for my Children?A lot of parents will use a pre-paid credit card to give their children an allowance or money for clothes or other expenditures. Is this a good idea or are there other options? There are several other options but you should know what each of these options can do for you. Many Pre-Paid Cards have service fees and some of those fees can really be expensive. There is a fee to setup the card, there is another fee when you want to add money to the card, there could be a monthly fee and finally another fee if you want to close the card. It might cost you up to $20 just to setup the card for use. Then the monthly fee could be another $10.00 and it could cost you between $2 and $10 dollars each time you want to reload the card. A lot of parents will use a pre-paid credit card to give their kids an allowance or money for clothes or other expenditures. This is just one part of a plan to help fix bad credit.There is a fee to setup the card, there is another fee when you want to reload the card, there might be a monthly fee and finally another fee if you want to close the card. As you can see these fees can really eat up the money if you choose to go that route.This way you can just transfer funds from your account into the account. This type of account may also come with a debit card. This debit card may have a Mastercard/Visa logo this will allow your child to make purchases at a lot of shops. So before you decide which route to take, look around at your options. By opting for the regular bank account, you might also be able to use this as an educational tool to teach them about spending money and making good purchasing decisions. If they have a bank account, then they can learn how to budget and maintain their money. This could be the beginning of learning good credit habits. Here are some supporting stories:Where are my savings?