Prepaid refers to a payment method where you pay for a service or product in advance, rather than after using it. For example, with a prepaid phone plan, you buy a certain amount of minutes or data upfront. This means you can control your spending and avoid unexpected bills. Another common use of prepaid is with prepaid debit cards. These cards allow you to load a specific amount of money onto them, which you can then use for purchases. This is a great option for budgeting, as you can only spend what you have already loaded onto the card.