Good Idea: Pre-paid credit cards teach teenagers how to manage their money

Provider Camden Council
Name COO-L pre-paid credit card scheme

Money may not grow on trees but it does grow on pre-paid cards handed out to young people in Camden. The council has created a credit-card style scheme with MasterCard, in an attempt to teach disadvantaged teenagers about managing their finances, and help them access local facilities.

Young people aged 12 to 16 who attend a Camden school, live locally and receive free school meals can access £15 each month, while those with learning disabilities or living in care can claim £40 a month.

The project is part of the authority’s Choice and Opportunities On-Line (COO-L) programme, which identifies eligible young people and offers support through parents, carers, schools or youth groups.

Young users are able to manage their accounts via the COO-L website, but can pay for amenities in the same way as a chip and pin card, or over the phone. Only registered facilities accept the cards, so it is impossible to spend the money elsewhere. These are chosen in consultation with young people and include cinemas, museums, theatres and gyms.

Money from each month can be rolled over and saved up. The scheme is funded through the council’s children and young people’s budget.

The council supports young people using the cards through its COO-L programme officers, who advise them how to use the cards and manage their money. It also offers a helpline for any queries, and officers have worked with young people to make an online video guide to using the cards.

“I use the card for booking theatre, ice skating and cinema trips. It is lovely,” says Blessing Anyaegbunam, 19, a COO-L user.