Parents and kids now have a way to help them manage allowances, monitor spending, save towards a goal and even digitally invoice for completed chores. Launching today, Chase First Banking is a new checking account designed to help parents teach kids and teens about the importance of money management through the Chase Mobile app.
The account, which does not charge monthly fees, was built by Chase in collaboration with Greenlight, a company whose mission to help parents raise financially smart kids.
Most kids learn about money when out shopping with their families. But as more transactions happen digitally, kids can lose touch with real-time discussions on the value of money and how to think about purchases.
“Families are juggling so many more responsibilities today than ever before,” said Allison Beer, Head of Digital for Consumer & Community Banking at JPMorgan Chase. “To help, we’ve made it easy for parents to manage kids’ allowances, keep track of chores and teach important financial skills from within the Chase Mobile app.”
To keep things simple, Chase First Banking accounts have three features—Earn, Spend and Save.
Here is how it works for adults:
- As the owner of the account, the Earn tab allows parents to set allowances and assign chores, including how much kids will receive and when they need to be completed.
- They can set the amount kids can spend and at what types of stores from the Spend tab and receive alerts when spending happens.
- They also have exclusive control over moving funds from Save once kids complete a goal.
- For extra peace of mind, they also can turn features on and off, lock their kid’s debit card, and cancel and adjust chores or allowances.
And here’s how it works for kids:
- Each child gets their own personal debit card that can be used only based on the spending limits set by their parents.
- From their own Chase Mobile app, Earn lets them see what chores they have been assigned, check them off when completed, and see when their allowance is paid.
- Spend helps them know how much they have and where they can make purchases.
- Save helps them work toward a financial goal and alerts their parents when it’s been achieved.
- They can also lock or freeze their card if they misplace it.
“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 at JPMorgan Chase.
Research shows money habits are set by the age of 7. Financial education can start as early as the age of 3 according to CBS News business analyst Jill Schlesinger, in a report discussing the importance of teaching children to be financially literate.
Identification of coins, for instance, and “distinguishing between things that are free and things that cost money” are finance fundamentals that should be taught at a young age, Schlesinger said.