Pre-Paid or Plan?
6
Pre-Paid
Post-Paid Plan
With a pre-paid plan, you pay a monthly fee up front. This gives users a set amount of phone calls, texts and data per month. It can be a good idea to start with a pre-paid plan. This can help you find out what kind of user your child is before you lock into a contract.
With a post-paid plan, you agree to pay a monthly fee for the month’s usage, usually as part of a long-term contract. Often these plans might include unlimited calls and texts but not unlimited data. You might consider getting a plan without data until your child is older and you are confident he or she is a responsible digital citizen. If your child’s plan does not include data, they can only go online when connected to Wi-Fi. This can help them learn thrifty phone habits and avoid using their phone without thinking.
PROS OF PRE-PAID
■■ Your child can’t exceed the allocation for the month ■■ You can manually top up if your child needs extra for that month ■■ There are no lock-in contracts ■■ They work well with a handme-down phone ■■ They teach your child to plan and budget CONS OF PRE-PAID
■■ The cost per call, text and data might be higher than for post-paid plans ■■ You need to buy a mobile phone outright ■■ Your children may not be able to contact you in emergency situations if they have used all their credit If you decide to go with a prepaid option, it is good to talk with your child about what will happen if they use all their pre-paid credit. Will you pay extra? Will your child pay extra? Will your child be without calls, texts and data for the rest of the month?
PROS OF A POST-PAID
■■ They tend to offer better value than prepaid plans – for example, a $30 monthly payment might include $500 worth of credit for calls, texts and data ■■ The phone can be bought as part of the plan CONS OF POST-PAID
■■ It’s easy for your child to overuse the phone and go over the monthly limit. This can result in unexpectedly large bills. ■■ Providers usually charge significantly higher rates if you exceed the monthly limit ■■ If the phone is lost, broken or otherwise can’t be used, and it is not insured, you still have to keep paying according to the agreed contract.
Mobile usage controls New tools from Apple (pictured) and Google allow control and monitoring of screen time, which apps can be used, and impose content restrictions.
