In a world quickly going cashless, it’s important for kids to adapt, too.
Enter the Cash App for kids, a tool launched in 2021 to enhance financial literacy in the younger generation.
With this app, kids can open accounts, carry out transactions, and learn about saving and responsible spending.
It’s become a popular way for friends to split costs, and for parents to manage their children’s daily expenses.
But it’s not just about spending. It’s also about learning to make money work for them.
So, if you’re keen on giving your child a taste of financial independence while still keeping a watchful eye, Cash App for kids could be just what you need.
Let’s get started!
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Cash App for Kids: An Overview
The popular money management app has features tailored for kids aged 13 to 17.
Your child can now have their own Cash App account, and it’s about much more than just saving up for that fancy new skateboard or paying for movie tickets.
As a parent or trusted adult, you become the sponsor of their account. You’ll be able to monitor activity, turn certain features on or off, and even close or pause the account by contacting Cash App support.
Kids get access to in P2P transactions, the Cash Card, direct deposit, and even dabble in bitcoin and stocks.
Plus, parents or guardian can set up recurring allowance payments, making “I forgot” an excuse of the past.
Cash App has placed restrictions on certain businesses to protect minors from potential financial risks.
Cash balances in both sponsored accounts and the sponsors’ accounts are FDIC insured up to $250,000 through Cash App’s partner banks.
This includes multiple Cash App accounts and multiple sponsored accounts under the same insurance coverage. Note though, that bitcoin and investing balances are not covered by FDIC insurance.
Cash App for kids offers a great way to give them a taste of financial independence while keeping them safe and educated. Plus, it’s a nice little break for your wallet, right?
How to Set Up a Cash App Account for a Teenager
There are two ways to kickstart your child’s experience with Cash App.
The first method involves your child requesting you to sponsor their account, which will grant them access to certain features.
The second method is more proactive – you can invite your child to create a Cash App account, opening the door to collaborative money management.
Here’s a step-by-step guide to setting up a Cash App for kids:
1. Teen Ask You to Sponsor Their Account
Your tech-savvy teenager starts by downloading the Cash App from Google Play or the App Store.
Here’s how they send you the authorization request:
- Open the Cash App and tap the profile icon on the home screen.
- Navigate to ‘Family Accounts’ and tap on ‘I’m a Teen’.
- They’ll fill in the application form with their name and birthday, then tap ‘Request Approval’.
- They’ll need to input your name, email, phone number, or $CashTag.
- Click ‘Send’ to shoot that request over to you.
2. Parent/Guardian Invite Kids/Teens
A legally recognized parent or guardian has the authority to invite their children to start using Cash App.
Here’s how you authorize their account:
- Open Cash App and tap your profile icon.
- Head over to ‘Family Accounts’ and tap ‘Invite a Teen’.
- Follow the prompts to share an invite link via text or email.
- Once your teen has downloaded the app using the link you sent, you’ll have to approve the app.
- Tap the Activity icon on the home screen.
- Go to ‘Request for Approval’.
- Tap ‘View’ to review the terms of service, then click ‘Approve’.
And just like that, your teenager is ready to start learning about money management with their very own Cash App account.
Key Features of Cash App for Kids
Cash App account for your kids will have access to the following features.
1. Send & Receive Money
Cash App for kids is an ideal solution for instant monetary transactions.
Whether it’s for movie tickets, pizza with friends, or receiving their weekly allowance, your child can send or receive money swiftly.
Sponsored accounts, which include those used by kids, have the ability to send, receive, and request USD payments up to $1,000 per 30 days. This includes recurring allowance payments, making it even easier for parents to manage their child’s funds.
Additionally, the Cash Out feature allows your child to transfer money from their Cash App balance to a connected bank account, with a limit of $25,000 per 7 days.
Your child can also add funds to their Cash App balance, up to $7,500 per 30 days. This allows them to manage their money and maintain a healthy balance in their account.
For kids receiving funds via traditional means, they can make paper money deposits to their Cash App account with a limit of $250 per 7 days and $1,000 per 30 days.
Lastly, the direct deposit feature offers an alternative for receiving funds, such as paychecks from part-time jobs.
2. Unique $Cashtag for Their Account
Just like all Cash App users, your child will have their own unique $Cashtag or Cash App name.
This is like a username for Cash App, making it easy to send and receive money. It’s a fun way for kids to personalize their account and make it truly theirs.
For inspiration to help your kids select the perfect $Cashtag, check out our article 500+ Cash App Names: Cool. Unique & Funny Cashtag Ideas.
3. Custom Cash Card
Cash App isn’t just digital. Your kid will get their own custom Cash Card, a debit card that can be used anywhere that accepts Visa.
They can even design the card themselves, adding a touch of personal flair.
Check out our article for creative ideas and inspiration for your Cash App card designs.
4. ATM Withdrawals
If your teen needs some cold, hard cash, they can use their Cash Card to make ATM withdrawals.
Note that there is a $2 fee per withdrawal, but Cash App provides an ATM fee rebate for users who have monthly direct deposits of at least $300 into their accounts.
Related: Cash App ATM near Me: How to Find Free ATMs in Your Area.
5. Cash Boosts
The Cash Boost feature on Cash App allows your child to enjoy immediate discounts at popular outlets like Starbucks, Burger King, and DoorDash.
However, it’s essential to note that Cash Boosts come with certain restrictions. These include minimum purchase requirements, maximum discount limits, and they cannot be applied to cash-back transactions.
The specific details of each Boost can be viewed directly in the Cash App by tapping on a Boost. Furthermore, Boosts do expire but are frequently replaced with new offers.
6. Buy/Sell Stocks and Bitcoin
With Cash App for kids, they can learn the basics of investing. Starting with as little as $1, they can buy and sell stocks or bitcoin.
Parents or guardians must approve this feature before their child can begin investing.
Notable features include the ability to gift bitcoin from their Cash App balance, participate in ‘Round Ups’ and ‘Auto Invest’ in stocks.
Despite these features, there are limitations. Kids cannot conduct bitcoin transactions with other $Cashtags or use Bitcoin Boosts.
As a parent or guardian, you have the ability to control these features, monitor all transactions, and ensure a safe environment for kids to learn about investing.
Moreover, there’s a $100 weekly limit on buying, gifting, or rounding up in stocks and bitcoin, providing a balanced platform for learning and practicing financial responsibility.
Limitations of Cash App for Kids
While Cash App offers a range of features tailored to young users, there are some limitations and restrictions, especially for those under 18.
Certain features like ‘Borrow’, ‘Check Deposit’, ‘Cross-Border Payments’, and ‘Phone Support’ are only available for users aged 18 and over.
Moreover, Cash App imposes certain transaction restrictions to protect minors from potential financial risks.
Children with sponsored accounts cannot use their Cash Card to conduct transactions at specific types of merchants.
These include establishments selling alcoholic beverages like bars and liquor stores, cigar stands, hotels and motels, dating services, government-owned lotteries and casinos, bail and bond payments, and car rental services.
These limitations are set with the aim of ensuring that the platform remains a safe, secure, and age-appropriate environment for children and teens to learn about and manage money.
How Parents Can Monitor and Regulate Kids’ Transactions on Cash App
Parents and guardians have an important role in monitoring and regulating their child’s transactions on Cash App.
As the account sponsor, you have full visibility and control over your child’s activities on the platform.
To access these controls, navigate to the Family page within your profile section.
Here, you can review your child’s Cash App and savings balances, examine their transaction activity, manage their Cash Cards, and even toggle the Investing feature (stocks and bitcoin) on or off.
You can also view your child’s account activity in real-time from your app, or by referring to your monthly statements.
To do so within the app,
- Tap on the Profile icon
- Select Family
- Choose the account you wish to view.
- Select ‘See All’ to peruse the complete transaction history.
Alternatively,
- Log into cash.app on a desktop
- Go to the Activity page
- Click on Statements, and choose the month.
- Scroll down to the Authorized Accounts section.
You have the ability to reach out to Cash App’s Support team to disable your child’s Cash Card, terminate their Cash Card and Direct Deposit, or cancel your sponsorship.
For dispute management, whether a payment or transaction issue arises on your child’s account, you or your child can contact Cash App’s Support team to open a dispute claim.
This robust control and visibility ensure you can effectively oversee your child’s financial activities on Cash App while promoting a safe and educational environment.
Using Cash App for Financial Education
Cash App presents an excellent platform for financial education, especially for teenagers.
It provides a real-life setting where kids can learn about digital transactions, savings, and even investing.
With the flexibility to control, monitor, and regulate transactions, parents can ensure a safe, practical, and interactive learning experience for their children.
How Cash App Can Teach Money Management
Cash App for kids gives young users hands-on experience with money management.
They learn about the basics of transactions – sending, receiving and requesting money. They also get a feel for budgeting as they manage their balances and savings.
Moreover, the app introduces them to the world of investments with features like buying and selling stocks and bitcoin, albeit with parental approval and limits in place.
This way, they learn about the potential risks and rewards associated with investing.
Using Cash App to Pay Allowances
Paying allowances becomes more streamlined with Cash App. Parents can set up recurring allowance payments, eliminating the need for physical cash and the excuse of forgetting to pay.
With allowances directly deposited into their accounts, kids can better manage their personal spending and savings.
It also provides a practical opportunity for them to learn about regular income and the importance of budgeting.
Direct Deposit Wages: A Possible Use Case
As kids grow older and take on part-time jobs or internships, they can take advantage of Cash App’s direct deposit feature.
This feature can be a powerful tool for teaching them about wages and income management.
By receiving wages directly into their Cash App account, they can understand the dynamics of earning, spending, saving, and possibly investing their income.
This provides a great foundation for when they step into their careers and manage their finances independently.
Frequently Asked Questions
Here are several common queries you may have about Cash App for kids.
Can a kid get Cash App?
Yes, kids aged 13 and above can use Cash App through a feature known as Cash App for Kids.
However, they need to be sponsored by a parent or trusted adult, who is responsible for approving their transactions and monitoring their account.
Is Cash App safe for 13-year-olds?
Yes, Cash App is safe for 13-year-olds and is designed to promote financial literacy. Parents or trusted adults sponsor accounts for those aged 13 to 17, giving them control over their child’s account.
The sponsor can monitor transactions, turn on/off specific features, and set up security measures to ensure their child’s account safety.
Furthermore, Cash App for kids has transaction restrictions at certain businesses to protect minors from potential financial risks.
How do I set up Cash App for my child?
To set up Cash App for your child, you’ll first need to have your own Cash App account. From there, you can send an invite to your child via the Family section in the app settings.
Your child will then create their own account and request your sponsorship. As a sponsor, you’ll be able to monitor your child’s account activity, manage features, and even pause or close the account if necessary.
What happens when you turn 18 on Cash App?
Upon turning 18, Cash App users can transition from a sponsored account to an individual one.
On their 18th birthday, they will receive a notification to begin the process of verifying their identity within the app.
After successful verification, the sponsorship link is cancelled and the user gains full ownership of their account with access to all of Cash App’s features.
Conclusion
Cash App for kids offers an invaluable platform for teaching financial literacy and responsible money management.
With its extensive features and customizable controls for parents or guardians, it seamlessly bridges the gap between financial dependence and independence for teenagers.
By using this application, not only are you setting your kids up with a practical tool for today’s digital age, but you’re also investing in their financial future.
Remember, the key to financial savvy is starting young, and Cash App is here to make that journey easier.
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