Budgeting Household & Family Expenses with a Prepaid Card
Budgeting is always tough, especially when starting a family. Whether it is for weekly expenses, family vacations, saving up for the holidays, or teaching your kid basic financial skills, using prepaid debit cards can be the difference between successful saving and struggling to do so. They are a useful tool and a great way to save money and live stress-free. Below are some helpful tactics, tips, and tricks to save money using a prepaid debit cards.
Budget Weekly Spending
One of the most popular ways to save with a prepaid debit card is to use it for weekly spending. An effective way is to use to use it is with the “envelope”, meaning you put away money on a card instead of cash in an envelope. You can put money that you need for the week or to save larger amounts, prepaid cards are a great way to ensure you don’t overspend. For those who struggle, prepaid debit is a perfect method to stick to your budget and avoid dipping into savings. Since they only have the amount you load, it is easy to avoid spending a lot in any given week.
Another way to make the most out of prepaid debit cards is to use them not just for necessities but for unexpected expenses. Vacations, for one, are expensive—especially if you want to live large. Use a prepaid card either for budgeting weekly spending or load your vacation money and take the card with you. The specialists at MoneyPug, which is widely used to compare prepaid cards, say that they are one of the most popular ways to spend not only for the household, but for avoiding fees abroad. With a prepaid card you can take out money, spend at restaurants, bars, and other venues while using the money you put on it. It’s both easy and convenient.
Budget Kids’ Allowances
If you have a young child who is learning the ways of the financial world, it is a great idea to give them a prepaid card for allowance and expenses like school supplies. Not only will it prevent them from using too much, they will learn about day-to-day spending and engage with the act of saving for the first time. Young people need to learn the hard way sometimes, and when they run out of money on their prepaid card they will learn that they need to be responsible with money. You won’t have to worry about overdraft and you will be able to monitor the money they spend online, during their free time, and for necessary purchases like school supplies and food.
Budget Holidays & Big Events
Birthdays, Christmas, weddings, and other important events can be taxing and quite expensive. Luckily you can save over the long-term with a prepaid card. Christmas and other gift-giving holidays often require money you don’t have. You can put holiday, birthday, and wedding money on the card or use it to budget daily expenses. It’s just like putting cash away in an envelope. When you swear yourself off to using either debit or the prepaid card, you will be able to save for events that you think you wouldn’t otherwise be able to afford.
In many privileged Western societies, we spend too much on groceries and waste money on food we don’t need. Food goes bad and we throw it away. Budgeting groceries with a prepaid card can provide a set amount to spend on groceries. This tactic can help you avoid getting excited at the store and putting too much in the cart. This will not only help you pay for groceries, it will enable the ingredients that you already have. Stretching your dollar is important, however much money you have, and using a prepaid debit card is a way to begin saving and start living more responsibly.
A great tool, using a prepaid card can be an effective way to budget household expenses and pay for what your family needs. Be diligent and put money in a safe place, where you won’t spend it. Prepaid cards are one method to help you keep your spending in check and use your money more wisely.