Important things to know about Prepaid Cards

Oct 26, 2022Financial Literacy

Many purchases, not just those made online, will require a credit or debit card.  Unfortunately, not everyone has one, making prepaid cards a convenient possible alternative. 

Using the free *Native American Financial Services Association (NAFSA) Financial Literacy Program, you can explore online playlists with many modules that relate to overall financial competency, whether this is understanding credit cards or preventing overdraft fees, our curated playlists will provide you with important information.

Prepaid Cards:

A prepaid card functions similarly to a credit or debit card and can be used to make purchases in lieu of cash.  For prepaid cards, money is loaded onto the card prior to use.  While most commonly used for purchasing, prepaid cards can also be used to store and transfer funds, as well as a method for receiving direct deposits.  These days, it is not uncommon to even see federal agencies use these cards to distribute benefits, such as unemployment, Social Security, or veterans’ benefits. 

Our Prepaid Cards module, located in the Financial Foundations playlist explains the various types of prepaid cards and how they differ from traditional credit or debit cards.  The module also explains the advantages and disadvantages to these cards, and what sort of protections generally come with these cards.  Prepaid cards may seem simple, but there are still important factors to keep in mind during use.  This module can help you make informed decisions regarding prepaid cards and whether they make sense for your financial journey.

The NAFSA Financial Literacy Program provides a variety of modules and tools with easy-to-understand information to help people better comprehend their finances and make more informed decisions.

Explore the program today:

*The NAFSA Financial Literacy Program content contained on the NAFSA web page(s) referenced above, and on any subsequent pages created by our service providers/partners, provides general consumer information. It is not legal advice or regulatory guidance. There may be other resources that also serve your needs and you are always encouraged to, and should, consult with your own professional advisors prior to making any financial decisions.

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