5 Features to Look for in a Money App for Your Teen

This article was paid for by Cash App.

Whether it comes from a part-time job through direct deposit or from a parent directly, every teen wants to have spending money. And while cash isn’t entirely obsolete in the eyes of teenagers, there’s no denying that the world is increasingly digital and cashless. 

This means more families are turning to banking apps to give their teens pocket money, monitor their spending and saving habits, and help them build their money management muscles early on. 

If you’re looking for a money app for your family, here are five features to keep an eye out for.

You want your teenager to take ownership of their personal finances, but it can be worrisome (and potentially dangerous) to leave them entirely to their own devices before they’ve developed any financial know-how. 

For that reason, you want an app that lets you keep a close eye on your teen. An app like Cash App offers what’s called a sponsored account. This means you, as the parent*, have complete oversight and the ability to do things like:

• Monitor transactions to encourage responsible spending (and saving).
• Immediately lock your teen’s debit card in case of loss or other problems.
• Receive immediate alerts when they send money to someone new (i.e., a peer-to-peer transaction with a new person).
• Block transactions with people you don’t want them to interact with.
• Rest assured that Cash App blocks merchant categories that are deemed unsafe for teens.
• Progressively give access to features you would like your teen to use, such as investing.

This isn’t about micromanaging – it’s about giving your teenager autonomy with their finances, while still having important safeguards in place so you both feel secure. 

An app linked to a debit card is a convenient way for your teenager to make purchases, both in person and online. And, because it’s directly connected to Cash App, every transaction is automatically tracked and viewable within the app.

It’s streamlined and automated, with no manual data entry required. So, you and your child have easy access to accurate and up-to-date insights into their spending activity. When you can both stay closely in touch with their spending, it’s easier to fix bad habits and work together to build their financial hygiene.

Security is understandably one of your biggest concerns with any digital money tool. Even if your teen isn’t managing tens of thousands of dollars, they (and you) deserve to know that their finances are in good hands.

The financial services app you choose should offer robust security measures, including: 

• 24/7 fraud detection 
• Real-time notifications of suspicious activity so you can take swift action
• Encryption to keep all sensitive data safe
• Thorough identity verification, including the ability to detect false age claims
• Security lock (Face ID, Touch ID, or a secure pin) to access and use the app

A tool like Cash App has all of these protections in place, so you can rest assured knowing that your teen’s finances are just as secure as your own. 

You don’t just want to monitor and manage how your teen spends money — how they receive it matters too. Look for an app that makes it easy for your child to get the money they’re owed. 

If you pay your teen an allowance, your chosen banking app should let you pay it directly through the app. Find an app that lets you and your teen send and receive money instantly, without all the fees. 

For kids with part-time jobs, it’s helpful to have an app that allows for direct deposit, too. So your teen can receive their hard-earned paycheck without jumping through any hoops.

Alarmingly, only half of U.S. adults are financially literate. So, it’s never too early to teach your child or teenager about smart money management. Fortunately, your chosen app can help with features like:

• Monitor their spending habits to help them see where the money is really going
• Savings goals to encourage regular contributions (even small ones)
• Investing tools to help them learn how to invest, once you decide they’re ready**

Ultimately, your financial services app shouldn’t just track your teen — it should enable teachable moments for them, too.

You want to give your teenager some financial independence, but it’s also nerve-racking to turn them completely loose with their allowance or paychecks.

A money app that offers features specifically for teen accounts can help you strike a balance between oversight and ownership. Your child gains some level of control over their spending and money management, while you supervise and step in as needed. 

You’ll help them learn, grow, and practice their financial skills — with the benefit of a solid safety net in place.

Disclosures

Cash App is a financial services platform, not a bank. Banking services provided by Cash App’s bank partner(s). See http://cash.app for more details. Prepaid debit Cards issued by Sutton Bank, Member FDIC. See Terms and Conditions. Direct deposit provided by Cash App, a Block, Inc. brand.

*To view the eligibility requirements for sponsoring a teen, please visit the Sponsored Accounts section of the Cash App Terms of Service.

**Brokerage services by Cash App Investing LLC, member FINRA / SIPC, and a subsidiary of Block, Inc. Investing is a non-deposit, non-bank product that is not FDIC insured and involves risk, including monetary loss. Block, Inc. is not a member of FINRA or SIPC. For additional information, see the Cash App Investing disclosures. Additional fees for securities may apply, such as regulatory fees and fees to transfer securities externally. Please see our House Rules for more information.