Definition
A card preloaded with a set amount of money that you can use like a debit card, helping you control spending by only using what’s on the card.
What to consider
- Load it with only what you plan to spend to avoid overspending.
- Keep track of your balance regularly.
- Be aware of any fees that might apply.
Real world scenarios
- Matt loads a prepaid card with his weekly spending limit, preventing overspending on groceries and dining out.
- Lucia gifts a prepaid card to her teen for online purchases, teaching budgeting without risking overdrafts or credit debt.
- While traveling abroad, Yvonne uses a prepaid card to avoid linking her main bank account, enhancing security in unfamiliar places.
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