Prepaid Reloadable Cards are an excellent alternative to cash and credit cards. If you aren't ready to give your teen a credit card, consider giving them a prepaid reloadable card - a credit card with "training wheels". Prepaid cards allow you to have control over your teen's spending yet give them a sense of independence. Here's how it works:

Load 'er up. You purchase a prepaid card from a credit union near you. You load the card with a sum of money - say your teen's monthly allowance. The card has your teen's name on it.

Reload 'er up. They can use the card to make purchases and funds are deducted immediately from the card. You can reload the card with the next month's allowance. If your teen has a part-time job, they can opt to have their paycheck applied directly to the prepaid card.

Everywhere teens are. The card can be used at retailers nationwide wherever VISA or MasterCard is accepted as they are issued on one of those two platforms. The cards can also be used to make purchases online.

You win, they win. The prepaid card is a great way to teach budgeting - the money has to last a specific period of time. And you have control over the total they spend but they have control over the day-to-day spending. Also, you can access their spending history and balance securely online.

Prepaid Cards offer the same Zero Liability benefits as all MasterCard and VISA cards.

Click here to view a short video and learn more about the benefits for you and your teen if you use a prepaid card.