Cash App Introduces Parent-Managed Accounts for Kids Aged 6-12 to Boost Financial Literacy

Cash App Expands Services with Parent-Managed Accounts for Kids

Cash App, the banking and payments platform operated by Block, has introduced parent-managed accounts for children aged 6 to 12. This new feature is part of the "expanded Cash App Families experience," designed to foster financial literacy from an early age.

In 2021, Cash App first enabled teenage users to access its platform. Now, with the new accounts, legal guardians and parents can create managed accounts that provide a dedicated space to:

• Send allowances
• Set aside savings
• Track spending
• Lock the child’s account to prevent unauthorized transactions

Kids receive a custom debit card and can receive payments from up to five trusted accounts, though they cannot access Cash App itself.

Key Features of Cash App’s Kids Accounts

The managed accounts are tailored for children aged 6 through 12. Once a child turns 13, parents can choose to convert the account into a "sponsored account," unlocking additional features such as:

• Sending and receiving payments
• Investing in stocks
• Trading cryptocurrency

While sponsored accounts offer more independence, they remain monitored and controlled by a parent or legal guardian.

"Today, we're launching Cash App accounts for kids age 6-12. Parents manage the accounts. Kids get to learn about safety, start saving for goals, and design and use their own debit card. Next generation banking never looked so good."

Cash App’s Move in the Fintech Space

Cash App’s introduction of managed accounts for younger children sets it apart in the fintech industry. While competitors like Venmo offer payment access to teens aged 13 to 17, Cash App targets a younger demographic. Venmo rolled out teen access in 2023, while Apple and Google provide kids accounts through Apple Cash Family and Google Wallet, respectively.

How to Set Up a Cash App Kids Account

To create a managed account for a child aged 6 to 12, parents or legal guardians must:

• Download the Cash App platform
• Follow the prompts to set up a parent-managed account
• Customize the child’s debit card and spending rules

For more details, visit the original article on Engadget.