Fintech apps are catching them young

The idea behind them is simple. their goal is teach children And young adult money management lessons that will come in handy as you get older.

under the hood: Fintechs like WiPay are issuing prepaid cards linked to apps and not to a bank account. “YPay Card is a smart and easy way for teenagers to do cashless transactions while keeping parental control. To use the card, parents get their KYC done and log in to the app and activate it. After that using net banking, UPI, credit or debit card, they can top up,” said Navneet Gupta, Founder and Chief Executive Officer (CEO) y pay.

Similarly, Junio ​​is a digital pocket money app for pre-teens and teens that acts as their own smart card for all online and offline spending. “You can top up the card instantly using the Junio ​​app, and it’s ready for your little one to use,” said Ankit Gera, co-founder of Junio.

Others, such as the soon-to-be-launched Streak, issue prepaid cards, which are like wallets. “Parents can load money on the card and their children can transact both online and offline under their supervision,” said Mitul Mehta, co-founder, Streak.

Children can use these cards to make online and offline payments. Sanjeev Pandey, Managing Director and CEO, Erote said, “Children can scan, tap, swipe and make online payments independently without waiting for their parents to input banking details or give them a one-time password (OTP) ” Technologies Pvt Ltd, which owns Omnicard.

Digital Pocket Money: Parents are not required to give pocket money in cash to their children. Mobile apps provide the option to set and track your children’s spending limits. “When money is given to children through an app with limits set by parents, they will spend wisely as they know their parents are being kept in the loop,” Gupta said. Using the Junio ​​app, parents can set tasks for kids such as making their own beds or watering plants. For each activity, they set aside an amount which will be given to the children only after successfully completing the task. It is like encouraging the desired behavior with a bonus.

Parents in charge: Parents need to keep an eye on how children spend money. YPay allows parents to set limits on the spends that can be made through the card. They also get real-time notifications of all the transactions done using the YPay card. “The third and most worrying point is security. For this we have made numberless cards. Hence, there is no chance of it being misused,” Gupta said.

Similarly, Omnicard has parental controls that aim to inculcate the habit of responsible spending in children. According to Pandey, parents can control the total spending limit on the child’s card (under 18 years of age). Being a parent, they can also block the card if required.

Money Lessons: Using these cards, children can learn various valuable financial lessons such as financial accountability and budgeting from an early age. “When a child spends in cash, he often fails to keep track of his spending; but spending through cards always gives a clear picture of one’s spending. On analyzing this, a child will come to know Where he is spending, and can control it; if not, as a next step, parents can guide, monitor or control their spending,” Gupta said.

Pandey agreed. “It builds long-term finance management habits and teaches how to analyze one’s spending and spend responsibly,” he said.

“Streak has a feature to help your teen save money for their goals and track their progress towards achieving them,” Mehta said. For Junio, a feature called “Target” is under beta where the child can save for big ticket purchases with his or her pocket money.

“The child values ​​this type of purchase a lot because he has worked for it, and has learned some important concepts about money along the way,” Gera said. In addition, these cards include rewards. When one spends with Omnicard, one is eligible for offers from partner brands. Similarly spending on streak cards will help unlock coins which one can redeem to access curated offers. Wipay also offers cashback on preferred brands. It may be a concern that such rewards will cost the child more, but it is also a part of learning. -Fathers get real-time information about child’s expenses, which again hinders them to spend smartly and wisely.”

Teaching kids about money early will mean that good money habits stay with them for the rest of their lives.

“I think such apps are a good option for parents to give pocket money to their kids, as they can set limits and keep track of spending and also link it to tasks. It gives parents more control over how their child is spending money than with cash or debit cards, which are linked to their bank accounts,” said Shweta Jain, certified financial planner and founder, Investography. said.

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