Earn more on the essentials you care about
Prepaid cards are great for budgeting because they only let you spend what you load.
Instead of fighting against a big credit limit, you give yourself a clear spending cap and stick to it.
Used right, a prepaid card becomes a simple, built-in budgeting tool.
All KOHO plans put cash back in your pocket
KOHO Essential Works So Well for Budgeting
KOHO Essential is designed to be your everyday money + budgeting hub, not just a backup card.
With KOHO Essential Plan:
It has a low monthly plan fee that can be waived when you set up direct deposit or add +$1,000.
Use a prepaid Mastercard® for groceries, bills, subscriptions, and travel.
Grow your savings with a 2% interest savings rate on your entire balance.
Earn 1% cash back on groceries, eating & drinking, and transportation.
You can add Credit Building for $10/month, it's an affordable way to build your credit history
Enjoy unlimited transactions and free e-transfers (never worry about fees when sending money to someone again).
1. Turn Your Prepaid Card Into a “Spending Envelope”
Think of your prepaid card as your “spending money” envelope:
Decide how much you can afford to spend this week or month.
Load only that amount onto your prepaid card
Use it for variable expenses: groceries, eating out, small shopping, transit, etc.
When the balance is low, that’s your signal to slow down, not swipe more credit.
2. Separate Bills From Everyday Spending
Budgeting is easier when bills and daily spending aren’t mixed together:
Keep fixed bills (rent, utilities, insurance) in a primary account or separate bucket.
Use your prepaid card just for day-to-day discretionary spending.
With KOHO Essential, you can still have direct deposit in, then:
Move “bill money” out or into a separate goal
Leave a set amount on the card as your true spending budget
This stops bills from accidentally eating into your grocery or fun money.
3. Use Categories to Spot Where You Overspend
Most people don’t blow their budget on one giant purchase—it’s the small, repeated stuff.
With a prepaid card that has category tracking, you can:
See how much you actually spend on eating out vs groceries vs shopping
Compare categories month-to-month
Set soft limits like “no more than $X on delivery this month”
Once you see the patterns, you can adjust one or two categories and free up money without changing your whole life.
4. Load on a Schedule, Not at Random
Budgeting works better when your card loading matches your pay cycle:
If you’re paid bi-weekly, decide how much per pay goes to your prepaid spending card.
Load that amount on payday and treat it as your total spending money until the next pay.
No random top-ups “just because”—each load is part of a plan.
5. Pair Prepaid Spending With Separate Savings
Prepaid cards are for spending. To budget properly, you also need savings:
Create specific savings goals: emergency fund, travel, gifts, etc.
Move money into those goals before you load your spending amount.
With KOHO Essential, you can:
Park savings inside the app in separate goals
Let that money earn interest while your prepaid card handles day-to-day spending
That way, you’re not “accidentally” dipping into money that was supposed to be for future you.
6. Review and Adjust Monthly
A prepaid card makes it easy to run a quick monthly review:
How much did you load vs actually spend?
Which categories blew past what you had in mind?
Can you lower one category and raise savings next month?
You’re not chasing a perfect budget—you’re just getting a little more accurate every month.