Parents who want to teach their kids about money have some great tools on their hands such as kid-focused mobile banking apps, many of which come with personalized debit cards. They teach kids how to save and spend while also making it easy to give an allowance. The best part is, you don’t need to visit a bank branch. Continue reading to see all the banking apps for kids and teens that are available.
How Mobile Apps and Debit Cards For Kids Work
Banking apps that are made for kids and teens are very similar to their adult counterparts. Children and parents can access account information online, but children can also log in to their own sub-accounts, generally with limited features. Many accounts come with debit cards, and parents can fund the accounts by transferring money from an existing account. The mobile app allows parents to monitor their children’s account, and even limit purchases.
Many apps also let kids set aside savings, which can go a long way toward teaching them how to build a good savings plan. Here’s more on four buzz-worthy apps:
Capital One MONEY
Generally, youth banking apps don’t offer returns, but this account allows children ages 8 and older to set up an interest-earning checking account. It also comes with a Mastercard debit card and allows children to set up their own saving goals.
Requirements: Parents can fund this account by linking it to either an existing Capital One adult account or an external bank account. There is no monthly service fee.
Chase First Banking
The Chase First Banking debit card account is available for children ages 6 and older. Similar to other youth banking apps, parents can set limits to how much their children can spend. Additionally, youths can track their progress and set saving goals. The Visa debit card provides free access to 16,000 Chase ATMs.
Requirements: There is no monthly service fee, but a parent must be an existing Chase customer.
Greenlight
Although, Greenlight may not have a larger bank’s branding, this account is still great because it is federally insured through a banking partner. Kids get their own Mastercard debt card, which parents can fund.
Kids can set savings goals and parents can enable an optional round-up feature. The round up feature basically rounds up purchases to the nearest dollar, and the extra charge is automatically sent to a savings pocket. Teens that have jobs can even set up direct deposit with the Greenlight card.
However, the account doesn’t earn interest, but parents can choose to give “parent-paid” interest. They set the rate and the child can see how the interest compounds, or grows over time.
Requirements: Greenlight plans range from about $5 to $10 a month, with features that include basic budgeting tools on the lower end and identify theft protection on the higher end. There is no minimum age requirement.
FamZoo
This app comes with a prepaid debit card that lets parents monitor any account activity and track balances. It also has an option create a virtual “IOU” account. With this option, the parent or child manually enters transactions for funds held elsewhere, such as cash in a piggy bank. Also, they can always manage the virtual IOU money in the app, which is a good option for kids who have no experience handling real money.
Requirements: A FamZoo subscription is $5.99 a month, with discounted plans if parents prepay. The price is the same whether the family chooses prepaid debit cards, IOU accounts or a mix of the two. Children under age 13 can receive a prepaid card in their parent’s name.
More Apps To Watch
Although there are larger banking apps on the market, there are also plenty of new fintech apps from up and coming banks. Here are the three to watch out for:
- Gohenry. This app is popular in the U.K. and has recently expanded to the U.S.
- Bankaroo. Good for helping younger kids experiment with virtual currency.
- Step. No-monthly-fee debit card for kids ages 13 and older.
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Bottom Line
Debit cards can be helpful tools for kids to help parents to teach their children about money, and may even help make chores and allowances more fun. By making saving and spending easy, they can help kids make smart money decisions and become savvy bank customers. For more posts like this, check out our list of bank guides and Greenlight promotions!
