Prepaid travel cards for gap year trips
16 January 2012 16:12:14
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| Prepaid travel cards offer a safety net to young 'gappers'. |
A survey of 16 to 24-year-olds indicates that more than a quarter (26%) of the 2.6 million young adults preparing to go abroad will rely on mum and dad to cover some of the costs, with 11% seeing their entire trip paid for by their parents.
As university fees continue their unabated march upwards, it appears that more parents are willing to contribute to the cost of travel, which has long been seen as a great way for young adults to gain work experience and boost their CVs.
Supplementary cards versus prepaid
With 47% of potential 'gappers' admitting they would turn to their family if they ran into a financial emergency while abroad, American Express recommends parents take out supplementary credit cards for their children.
These are additional cards linked to their own accounts, which parents can monitor to see how much is being spent.
John Paasonen, director of charge cards at American Express, said: "Supplementary cards are a great tool for both travellers who encounter an emergency and parents who want to ensure their children have a safety net while away from home."
However, for those parents who are not comfortable giving their children a card linked to their own accounts, especially while they are abroad and liable to overspend, a prepaid credit card could be a better choice.
Prepaid travel cards can be loaded with a set amount of funds before your child even sets off on their trip, meaning that you have the comfort of knowing they have a safety net, without having to worry that they're spending beyond their means.
Because exchange rates are fixed at the time of loading, it is also possible to get much better deals, while more money can easily be added to the card if the funds are used up.
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