Budgeting Made Easy with Prepaid Cards

This is a sponsored conversation on behalf of Kaiku Finance, LLC. with Visa Clear Prepaid Designation. All opinions are my own.

Learning to live on a budget can be difficult for people who have never needed (or had to) live on a budget before, but a simple way to adjust to a budgeted lifestyle is to use prepaid cards.

For teens and college students, they are transitioning from a time in life where everything they need (and sometimes WANT) is instantly provided. By dividing expenses and placing the budgeted amount on prepaid cards, young adults have a visual reminder that their expenses are categorized.

But, even adults sometimes need prepaid cards.

We are a cash-only family, but there are times when paying with cash is difficult. For instance, when you need to make reservations for a rental car, purchase a gift online, or want to pay for gasoline at the pump instead of leaving your children alone in the car while you prepay inside.

For special moments when cash is just too difficult, our family uses prepaid debit cards. Here are some of my favorite ideas:

Coffee Allowance – Instead of carrying cash, budget for your caffeine habit with a Starbucks gift card. When you register your card online, you get the benefit of receiving a free drink on your birthday. Nice!

Christmas Shopping – Get a Santa-themed card to keep your Christmas purchases within your budget. Every time you look at your card, you will remember that this card is strictly for Christmas shopping.

Out to Eat – Restaurant gift cards can be purchased at grocery stores where you can earn additional rewards. At Winn Dixie, when you purchase a gift card, you get additional Fuel Perks.

Vacation – If you are traveling and need a way to keep your expenses under control, use a prepaid debit card. Load a little on it each payday until you have enough for your trip.

Every Day and Unexpected – Life can catch you off-guard and you need a back-up plan. With a Kaiku Prepaid VISA, you can be prepared for all the ins and outs of life every day.

What to look for in a Prepaid Card

When shopping for prepaid cards, be mindful of these three things:

1. How much information is required when opening the account?

Prepaid debit cards require detailed personal information where a gift card can be purchased without revealing a significant amount of financial history. Understand the difference and how much information will be pulled (credit score, bank history, etc.) when signing up for a new prepaid card.

2. Check and double check the fees.

The fee structure can vary greatly among prepaid debit cards. Make sure you are completely aware of any fees associated with transactions, ATM use, deposits, etc. Is there a fee when you load the card? Is there a fee when you do NOT load the card each month?

3. Understand the fine print.

Sometimes, the legalese in the fine print of a prepaid card can be overwhelming. Even so, make sure you understand the terms of use. You are bound by these terms whether you understand them or not.

About Kaiku

The Kaiku Prepaid card earned the Visa Clear Prepaid designation due to their straightforward fee structure. Plain and simple… the fees remain $0 a month when you have a $750 Direct Deposit each month and use 55,000 surcharge-free Allpoint ATM. There are no activation fees, usage fees, card declined fees and currency conversion fees.

If you do not set up a Direct Deposit of $750 each month, you incur a low $3 monthly fee.

Depositing money onto your Kaiku prepaid card is simple since they offer deposits with the Kaiku mobile app. You can just take a picture of a check with your phone. Also on the mobile app is Kaiku’s “Funds-Ometer,” which can help you monitor your budget by tracking your spending.  As you establish more history with Kaiku, you can compare your transaction history over the past 60 days.

How could you use prepaid debit cards to stay within your budget?