Fintech for Kids

May 10, 2021

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For parents who have become financially literate well into their 30s (or are still learning), the premise of apps that teach financial literacy to children is an attractive one. Startups are offering to turn chores into calendar reminders, make piggy banks virtual, and put allowances into investing portfolios. Greenlight Card, a debit card and mobile app for kids and their parents, increased its valuation from $1.2BN to $2.3BN over a six-month period with April’s $260MM Round D led by Andreessen Horowitz. Here’s a look at some of the features and innovations these startups are taking to the bank:

Chores with Rewards

With apps like Gohenry, parents can go beyond allowance by setting up bonus opportunities to earn, through tasks and chores. This UK-based company raised its first venture round, led by Edison Partners in New Jersey, at the end of 2020. Parents claim the app saves them money by giving children the opportunity to be responsible for their own wants.

Virtual Piggy Bank

Kids can benefit from painless savings tactics, like rounding up to every dollar, each time they use their debit card with apps like Goalsetter. They can set goals to buy the latest video game or save for a trip to a theme park through set-it-and-forget-it regular withdrawals. Goalsetter raised its seed round led by Astia Angels in January, 2021 and aims to change the future financial plans of its young users and their families.

Investing for Their Future
The beauty of compound interest is that the younger you start, the more you can earn. Investment platform Acorns has made it that much easier for kids with Acorns Early. Meanwhile, the company just acquired Pillar, the AI-powered debt management platform that focuses on student debt. After Acorns acquired several debt management platforms in Q1, many wonder what this financial education might do for preventing debt for this next generation.