Parents often give their children pocket money for regular chores and teach them about money management from an early age. In the US, 79% parents For children ages 8 to 14, give your child a weekly allowance ranging from less than $5 to more than $50. It’s usually a cash stipend, especially for younger children who don’t yet own their own mobile devices or don’t have access to digital payments.
Most teens (88%) and many teens (43%) have their smart phoneMobile payment apps like Apple Cash, Venmo, and Cash App make it easier for parents to digitally pay for their children’s allowance. Apple Cash Family allows parents to set up Apple Cash accounts for children under the age of 18. Parents can view their child’s account balance and transaction history, receive purchase notifications, limit who they can send money to, and limit how and where Apple Cash can be used.With Apple’s new iOS 17, parents will soon be able to conveniently pay their stipend by setting up recurring weekly, bi-weekly or monthly Apple Cash payments. For kids, it would be an introduction to direct deposit for chores and other tasks, which could prepare them for paychecks when they land their first jobs.
Parents of Venmo or Cash App users can also create Venmo Teen Accounts and Cash App SeriesIndividually for children aged 13 to 17. Similar to Apple Cash Family, these accounts are linked to and managed by a parent’s personal Venmo or Cash App account and provide parents with basic control and oversight of their child’s account activity. Venmo Youth Debit and Cash Cardholders can use their cards for in-store and online purchases and ATM withdrawals in the United States. Cash App also offers discounts, savings and investing features for sponsored accounts.
By using these mobile payment apps, teens can learn more about managing money responsibly.Nearly nine out of 10 (86%) of Generation Z Interested in using the app to learn more about personal finance. More than 50% of parents are also interested in using personal finance apps for their children, but only 12% currently use them. Apple Cash, Venmo, and the Cash App offer parents viable options to help teach children healthy financial habits and introduce them to digital payments. By the time these young consumers turn 18, they have become accustomed to P2P payments, direct deposit and debit cards and are ready to transition to their own mobile payment accounts.
overview Elisa TaviraDirector of Debt Advisory Services, Javelin Strategy & Research