Need to Know
- JPMorgan Chase is launching a checking account for kids.
- The account can be managed by both parents and kids through the existing Chase mobile banking app.
- Using the app’s Earn, Spend, and Save features, parents can help kids check off completed chores to earn an allowance, spend within budget at permitted online stores, and work towards a savings goal.
In an effort to teach youth about money management, JPMorgan Chase is launching a new checking account designed for kids and teens. The new account, a part of Chase First Banking, can be managed by parents through the Chase mobile app.
Built in collaboration with Greenlight, a kids’ debit card company dedicated to teaching children to grow up to be financially savvy, the checking account offers no monthly fees and unique features for both parents and kids.
The Earn feature allows parents to set allowances and assign chores, so kids can see how much they will receive when chores are completed. Kids can then check off completed tasks and confirm when their allowance has been paid.
The Spend feature lets parents set spending limits and determine which types of stores they can shop at, also letting kids know how much they are allowed to spend and where they can shop. Parents are also alerted when spending occurs.
When certain goals are completed, the Save feature notifies parents to move money over to a different account. This feature helps kids learn to work towards a savings goal.
Parents can also turn certain features off or on, lock their kids’ account when needed, and edit or cancel chores. Kids will also get their own debit card that corresponds with the spending limits their parents have set.
“Having this account is like having a financial health learner’s permit: kids can learn how to manage money, and parents have the ability to guide their experience safely and in real-time,” said Kavita Kamdar, head of Chase First Banking, JPMorgan Chase.
The Chase banking app currently has 39 million active customers.
JPMorgan Chase has made a dedicated effort in recent years to digitize its services and target a younger audience, which also means competing with top fintech firms and major tech giants Amazon and Google.
The once-traditional bank has since partnered with a newer fintech firm to improve receipt management, plans to launch a U.K.-based digital-first bank next year, and has launched a new digital fraud prevention hub to support the small- and medium-sized businesses that use its services.