Financial guru Martin Lewis emphasizes the importance of teaching children about the difference between credit, debit, and prepaid cards. He highlights the dangers of confusing prepaid cards with credit cards, urging parents to correct their children's terminology and educate them about responsible money management.
Financial literacy is not something that is always taught in great detail in schools, meaning young people can leave their place of education and go out into the world of bank balances and paychecks without the best knowledge.
"Children are calling their prepaid cards, credit cards," Martin agonised. "So, we need to gently correct our children and say, 'it isn't a credit card, it's a prepaid card'. "A credit card is a card that you pay for after you've spent on it. Now, if you pay it off in full, then there is no interest to be paid, so it's okay. If you don't, it is a debt card and you will pay interest of around 25 per cent, typically.
Martin Lewis money saving expert Martin finished his advice by urging parents to talk to their kids about the differences he had outlined to viewers in the segment, and warned that young people need to be careful about borrowing money, whatever form that may take.
FINANCIAL LITERACY CREDIT CARDS DEBIT CARDS PREPAID CARDS MARTIN LEWIS
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Martin Lewis Warns of 'Seismic Change' to Facebook and Instagram Over New RuleMartin Lewis, a well-known consumer advocate, has expressed concern over Meta's (Facebook and Instagram's parent company) decision to replace fact-checkers with community-driven notes. Lewis, who has previously sued Facebook over scam ads, is worried that this change will lead to an increase in misinformation and a decrease in the platform's ability to identify and remove harmful content.
Read more »
Martin Lewis Warns Against Scrapping BBC TV LicenceMartin Lewis, the well-known financial journalist and TV presenter, has voiced his concerns about plans to abolish the BBC TV licence fee. Responding to reports that the Labour Party might phase out the fee before 2027, Lewis questioned whether those who don't watch BBC TV also avoid its website, radio stations, and podcasts. He presented funding options like advertising, subscription, and general taxation, sparking debate about the BBC's future funding model.
Read more »
Martin Lewis warns against 'evil genius' credit card habit that keeps people in debt for decadesMoney Saving Expert founder Martin Lewis urges people to repay more than the minimum amount on their credit cards to avoid paying thousands in interest and staying in debt for years. He highlights the common trap of only making minimum repayments, which prolongs debt and increases interest costs. Lewis emphasizes the benefits of paying a fixed amount or as much as possible each month, using examples to illustrate the significant savings achievable. He also advises prioritizing repayments on high-interest debts first.
Read more »
Martin Lewis warns it's your 'last chance' to slash energy billsThe Money Saving Expert founder took to X to make people aware on Thursday
Read more »
Martin Lewis Warns of 'Pay by Bank App' Security RisksMoney Saving Expert founder Martin Lewis cautions about the 'pay by bank app' checkout option, highlighting its limited consumer protection compared to traditional card payments.
Read more »
Martin Lewis Warns of Soaring Energy Bills as Price Cap Set to RiseMartin Lewis, the Money Saving Expert founder, warns of impending energy price increases in April as predictions for the energy price cap rise significantly. Ofgem, the UK's independent energy regulator, is expected to announce an increase in the price cap, with several energy providers predicting rises between 3.3% and 5.7%. This comes alongside an announcement that water bills in England and Wales will see an average increase of £123, or 26%, from April 1.
Read more »