Mobile payment service Venmo recently unveiled its new Teen Accounts, aimed at helping young users learn about financial responsibility through sending and receiving money while being managed by parents or legal guardians. Along with the new accounts, the company also announced the launch of the Venmo Teen Debit Card, which doesn't carry any monthly fees.
Each Teen Account is linked to the parent's Venmo account and is operated separately, having its own balance. Parents can oversee their child's transactions, adjust privacy settings, and even send funds directly to their teenager's account. Additionally, these accounts allow teens to view their spending, and they may also be eligible for direct deposits.
Although access to the full-featured Venmo app can be granted or restricted by parents, they are still able to view the account's balance, transaction history, debit card PIN, lock/unlock options for the card, friends list, and block options for users. A maximum of five Teen Accounts can be monitored through one parent's personal Venmo account. Teens, however, are not allowed to use some features, such as crypto transactions, and currently, Venmo does not plan to include extra functionalities like savings accounts or budgeting tools for Teen Accounts.
Erika Sanchez, Vice President and General Manager at Venmo, explained the importance of introducing Teen Accounts: 86% of Gen Z are interested in using an app to learn about personal finance... For parents or legal guardians, the Venmo Teen Account allows them to give some financial flexibility to their teens, while giving them parental controls and visibility into their teen's spending habits.
According to the company's research, over 45% of Gen Z prefer discussing personal finance with an adult, and over 50% of parents have expressed interest in using an app to help teach their children about money management. With the introduction of the Teen Debit Card and Teen Account, Venmo aims to facilitate financial understanding and skill-building for both parents and their teens.
Setting up a Venmo Teen Account can be accomplished by parents through the 'Me' screen on the Venmo app, proceeding to their name in the top left-hand corner, and then choosing 'Create a teen account' from the drop-down menu. Parents also have the ability to choose a Teen Debit Card color, and provide pertinent information about their teen, including name, date of birth, and address.
By tapping into the teen banking market, Venmo has opened a new avenue for adults to sign up for the service. Venmo's new teen-focused features will be rolled out to a selected group of customers next month, with wider availability expected in the coming weeks.
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