Prepaid for Students and Campuses
College and university is a time for learning, experimentation and growth, but also about life and responsibility. There are over 2 million students enrolled in full-time and part-time higher education programs across Canada, many of them making key decisions about their lives, professional goals, schedules, time, and money management for the first time. So why do universities offer a “branded” credit card? If you have no job, no money and are incurring student debt you would think the last thing you should do is “get a loan”.
Unlike credit card companies, students and parents both realize the importance of building solid financial habits, the cornerstone of which is the need to establish control and accountability without jeopardizing financial independence.
This notion has led to a dramatic increase in the use of prepaid cards for University, College and even High School campuses across North America. Here are four reasons why these cards benefit students of all types.
- Prepaid cards make it easy to establish an effective level of control over spending. Prepaid cards have built-in spending limits. Once that limit is reached, further spending is prevented until additional funds are deposited onto the card.
- The card is convenient and easy to use. An added benefit is that it fits easily into the student lifestyle. College life is fast-paced, and no student wants to be burdened with a checkbook or repeated trips to an ATM or bank branch. The fact that the prepaid card enhances mobility is a definite plus for students.
- The card can be used for purchases both on campus and off, and also doubles as a form of student ID, especially when personalized with a picture. Even university alumni can use the card for interest free payments, donations back to their institution (can be tied to loyalty), or simply stay in touch.
- With the rise of popularity of prepaid cards, many universities are working with local businesses to forge new merchant rewards programs. This means that businesses on or near the campus express a strong desire to have students spend their money locally. Utilize discounts and loyalty rewards to drive students to a variety of local merchants.
- Using a prepaid card helps build good money habits. Over time, it helps teach students how to budget their money without having to incur debt.
With all these benefits, it’s easy to see that a prepaid card is the ideal way for students and their parents when it comes to handling money and controlling spending. As for prepaid cards, their mobility, flexibility, security and ease of use make them the perfect financial vehicle for students.
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