Leah wants her teenage son to be able to purchase items at the grocery store when she is traveling for business; however, she wants to be able to restrict not only the amount of funds available to him but also the location(s) at which he is allowed to spend the money. Which of the following should she use?
A stored-value card
B digital wallet
C smart card
D e-credit card
The correct answer and explanation is:
The correct answer is A. Stored-value card.
A stored-value card is a prepaid card that holds a specific amount of money, which can be used to make purchases up to the amount stored on the card. This type of card is often used as a more controlled method of managing a teenager’s spending because it is not linked to a bank account, and once the value on the card is exhausted, no more purchases can be made. Stored-value cards can be reloaded with funds by the parent and often come with features that allow them to set limits or control how much can be spent, as well as where it can be used.
In Leah’s case, she wants to control not just the spending amount but also the locations at which her son can make purchases. Many stored-value cards offer restrictions on where they can be used, which would allow Leah to ensure her son spends money only at specific stores or within a particular geographic area. These cards often come with customizable features, allowing parents to monitor and control their child’s spending behavior in real-time.
Other options like digital wallets, smart cards, and e-credit cards may not offer the same level of control. A digital wallet typically stores information about credit cards and other payment methods, and while it can be convenient, it does not inherently restrict spending by location or amount in the same way a stored-value card does. A smart card might offer some restrictions but is more commonly used for access control or specific services rather than general spending. An e-credit card is essentially a virtual card linked to a credit account, and while it may allow for some restrictions, it’s typically not as specific or focused on the level of control Leah desires.
Stored-value cards are widely available, easy to reload, and offer the right balance of flexibility and control for Leah’s situation.