While most kids have a savings account (8 out of 10 parents put money aside for their children), only a few have a current account. But times are changing with the emergence of neo-banks.
Can you lend me a tenner?
Teenagers are like us: they spend! And they mainly spend on-line!
A bank note from mum or dad’s wallet doesn’t really suit the new generation, and with hindsight, perhaps that wasn’t the best way to teach them how to manage their money.
We are a stepping stone.
That is how the well-named Step defines itself.
The American neo-bank is about to launch and is aiming at teenagers…and their parents, of course!
The objective: allow 12-17 year olds to start managing their money in a totally secure environment.
Sounds promising, and like everything these days it works via smart phone.
A complete package
A free bank account with no charges which lets you monitor your account, pay with a bank card, send and receive money and even earn rewards…that is Step’s basic package. In terms of security: no overdraft is allowed and each sum spent can even be subject to prior parental authorisation.
A kitty for my sneakers.
The recently launched French app, Pixpay, lets you creates tasks (€5 if your teenager washes the car) or a kitty. It’s a kind of numeric, themed piggy bank: yet another new pair of trainers? On the app, you can set up a “sneakers” kitty which Mum, Dad or even Uncle Eddie can top up on birthdays or at Christmas.
The idea is also to make kids more aware of the value of money.
Money managers of the future?
Another player in the market, Xaalys, has made financial education the basis of its banking solution. The start-up offers two formulas: a pay-to-use version for €2.99 a month including all functionalities, and a free version which gives access to fun management tools. The name wasn’t chosen off the cuff. Xaalys means money in Wolof, the language spoken in Senegal. As the brand says: “where money is scarce, to possess some calls for respect and wisdom.”
So what’s next?
That’s the question on everyone’s lips. Teenagers grow up…and the neo-banks know full well that at some point the bird will fly the nest. The big question will be: to go where?
Back to mum and dad’s bank? Or to continue with another neo-bank?
Bets are open!
Photos Credits : Step, Pixpay, Xaalys