Prepaid Cards Can Help Your Members Stay on Budget

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With the new year and tax season here, your members are likely thinking of ways to develop their financial health so they can meet their goals. LSC's partner GreenPath Financial Wellness shares that the journey to financial wellness is smoother when people take the time to create a budget. This step helps better identify each unique financial situation.

Yet, this can be hard to accomplish without the right tools. Prepaid cards, particularly reloadable cards, are a simple tool your members can use to successfully stay on top of their budgets this year. With the help of GreenPath, our team has identified some insights on healthy budget habits that can be advanced with prepaid cards.

  • Better Budget Awareness: By loading a budgeted amount onto a prepaid card, members can be more conscious of how much they have to spend on their purchases. After each transaction, they can easily see how much of their budget they have left to spend so they can keep this limit in mind as they make plans for future purchases.
  • Easy purchase tracking: Prepaid cards that allow users to track their everyday purchases make evaluating ongoing expenses easier. Tracking expenses helps identify areas of overspending and is a key element of building a successful budget.
  • Categorized and organized spending: GreenPath also recommends tracking begin with all spending for a month so that members can have a realistic idea of how to divide funds. (Tip: After gaining a better understanding of these categories, members might benefit from using a prepaid card for each spending category to ensure they don’t accidentally spend funds allocated for a different purpose.)

For busy members, the need to track and organize expenses can seem time-consuming and inconvenient. Prepaid cards are an effective solution. Your credit union can help members nurture their financial health by sharing these and other tips and providing a helpful prepaid program.

Easier budgeting is one of many ways prepaid cards can serve your members’ needs. They can enjoy the convenience of paying with a card without worrying about interest rates or risking their account information.Some prepaid cards even offer fraud protections to give added peace of mind.

At LSC, we’re focused on helping your credit union build better relationships with members. This includes offering a full-service prepaid card program that can benefit both you and your members. To learn more about how we can help your credit union develop a prepaid card program, visit https://www.lsc.net/prepaid.

Article by Naomi Anderson, vice president of Prepaid for LSC.