Cash App, part of the Block fintech network, has launched a new financial service aimed at children aged six to 12 in the United States.
This program enables parents to set up managed bank accounts for their young children. Each child will receive a linked debit card, which they can use for spending purposes, while parents retain complete control over deposits and monitoring the account.
Children will not have direct access to the Cash App interface. They can receive peer-to-peer payments from select approved users like grandparents and earn up to 3.25% interest on their balances. Parents can also use an existing allowance feature to set up regular automated transfers into the child’s account.
Strategic Expansion and Financial Literacy
By introducing this service, Cash App aims to build financial literacy among children by teaching them about savings goals. The company reports having approximately five million active teen users already, and the expansion into younger age groups is designed to create a continuous relationship with these potential future customers.
Upon turning 13, with parental approval, children can move from their managed accounts to broader Cash App services. These include capabilities for buying and selling cryptocurrencies like bitcoin and trading stocks, under adult supervision until they reach the age of 18.
