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It gives parents a way to incentivize good behavior and grades while also allowing them to track all the transactions their children make. The FamZoo prepaid card is the best one on the market. It’s important to start financial education at an early age, so it’s not surprising to see many parents looking for prepaid debit cards for their kids.

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American Express Serve Free Reloads Prepaid Card - Best for reloads.BlueBird by American Express - Best overall.Our Top Picks for Best Prepaid Debit Cards But they’re not all created equal, so it’s vital that you compare your options before you sign up for one. They offer a way for under-banked consumers to use a card they preload with funds for purchases. Often misunderstood as credit cards for bad credit, prepaid debit cards are more like checking accounts for people without banking services. That’s where prepaid debit cards come in. This means that millions of people may have difficulty with simple financial processes like cashing paychecks, making online purchases, or even ordering delivery.

According to latest numbers by the Federal Deposit Insurance Corporation, about 14.1% of the population in the United States is under-banked.