With the pandemic, a lot of people have approached the world of investing, and many more have experienced the massive use of eCommerce. Among them mostly millennials and boomers, in short, the adults who live with smartphones in their hands, but are not always digital in their daily activities (from paying bills down). What about the younger ones? For once we are not focusing on Generation Z, but we are going to probe a market that is not yet so well known and developed in Italy, also an accomplice to a lack of financial education.
In the United States and Great Britain, on the other hand, it is a blossoming of fintech startups aimed precisely at the Kids&Teen segment, which allow children to experience online or cashless purchases always controlled by their parents, who authorize payments without the fear that the little ones will squander it all on candy. So let’s take a look at five fintech startups that speak to kids and families.
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Among the most famous fintech companies in this field is Greenlight, a startup based in Atlanta, Georgia, already valued at more than $2.3 billion (thus, unicorn), which recently launched a children’s credit card through Mastercard. Using Greenlight’s services, according to data provided by the company, are more than 5 million users, including parents and children. The company was created to provide a debit card for minors, thus helping them not only to become more independent in their daily lives, but also to understand the value of money.
While it is true that investment apps are also a valuable vehicle for financial education, in the sphere we are discussing this mission is even more pronounced. Gohenry performs a similar function to Greenlight. For a monthly fee of $3.99, the UK fintech allows parents to track the spending their children make through the startup’s debit card. Moms and dads have a dedicated app, toddlers one obviously more suited to them.
“Every year millions of high school graduates enter the real world without ever having taken a single class on how to manage money. Kids learn best by doing, and BusyKid helps them implement important life lessons from the palm of their hand.” The third startup on our list is BusyKid itself, which with this message on its website reaffirms the mission of fintech companies in financial education for young children, hoping to help shape citizens who are more aware of their savings and investments. Again, a debit card is provided.
Also focused on financial literacy is NuMoola, another U.S.-based fintech that aims to bring not just children, but the entire family closer to a better consciousness about savings and home economics. Available in the App Store, the app relies not so much on a debit card, but on missions that parents can entrust to their children so that they can then reward them. On the platform, the account and items of income and expenses are the first comparisons to one’s accounts.
Closing out the list of fintech companies for children is Rooster Money, a UK reality that dialogues with families by again offering debit cards. According to Crunchbase data, the figures for the children’s fintech sector are not yet that high, but they still remain promising for a newly blossoming field that could soar in the coming years. In 2021, more than $500 million was invested around the world on 89 fintech products and services aimed specifically at the segment.
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First published in StartupItalia, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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