Cash App Launches Kids Accounts for Financial Learning

Cash App, operated by Block, has launched a new feature allowing parents to create managed accounts for children aged 6 to 12. This initiative is designed to introduce younger users to financial management concepts.

These accounts enable parents to send allowances, designate funds for savings, and monitor their child's expenditures. The system allows for the setup of recurring transfers and provides the ability to restrict transactions, offering a controlled environment for children to learn about money.

Children who are granted these managed accounts will receive a personalized debit card. They will be able to accept payments from up to five designated trusted accounts. Importantly, these younger users will not have direct access to the Cash App platform itself.

Upon reaching the age of 13, Cash App facilitates a transition for these accounts. Parents can opt to convert them into 'sponsored accounts,' unlocking more advanced features such as peer-to-peer payments, stock investments, and cryptocurrency trading, while still maintaining parental oversight.

This move places Cash App in competition with other fintech services and tech giants. Venmo began offering services to teens aged 13-17 in 2023, while Apple and Google also provide similar supervised account options through Apple Cash Family and Google Wallet.