The way parents talk to their kids about money changes over time. You might teach your six-year-old the basics of spending and saving — not to mention addition and subtraction — using actual dollars and cents. But that approach won’t work with a teenager, especially in a world of digital-first banking [1].
Kids and teens need a safe way to learn about money that grows with them, and parents need trusted, easy-to-use tools to teach them. Cash App Families accounts are designed specifically for children and teens, with broad parental controls and strong privacy and security protections that automatically evolve as your child learns over time.
Here’s what parents need to know about how to set up a financial services account for their child, and how Cash App Families accounts can help you teach your kids smart financial habits, from kindergarten to high school graduation.
How to open a financial services account for a minor safely
When it comes to family bank [1] accounts, keeping your child safe is a parent’s top priority. With Cash App, children [2] ages 6-12 and teens [3] ages 13-17 can learn the basics of financial management with money accounts for minors that include robust parental controls, automatic fraud protection and built-in safety and security features.
When you’re ready to open a money account for your child, it’s quick and easy to do in your own Cash App, without in-person visits, long waits or paperwork. And because Cash App Families accounts were created to evolve with your family as your children reach age milestones, you only have to set up a kid’s bank [1] account once
Once the account is created, you’ll unlock the following benefits:
- Monitor everything your child or teen saves and spends
- Receive real-time transaction alerts
- Set parental controls according to your own values as a parent
- Automate their allowance with automatic fund transfers
Teach financial literacy early with Managed Accounts for kids
A parent or guardian can set up a managed account for a child as young as six years old. Cash App Managed Accounts [2] for kids ages 6-12 give parents complete control and oversight. Because Managed Accounts are only accessible through the parent’s Cash App, your child’s experience is fully controlled by you. Plus, aside from up to five approved contacts chosen by you, peer-to-peer payments to Managed Accounts are automatically blocked. And if anyone not on that list tries to send money to your child, you’ll get an instant alert.
Each Managed Account comes with a customizable debit card with your child’s name on it to give them a sense of responsibility over their money, but you can set spending limits, block transactions with certain merchants and lock their card instantly right from your own Cash App. When your child turns 13, they’ll be able to “graduate” with parental approval to a Sponsored Account, which offers parental controls, but with direct app access. It’s like taking off the training wheels for digital banking: Your child gets a little more independence while staying under your watchful supervision.
Teens develop autonomy with Sponsored Accounts
Opening a Cash App account for teens is similar to opening a Managed Account for young children, with a few key differences. Sponsored Accounts [3] offer the same secure digital banking environment and built-in parental controls while giving teens a little more independence as they take on more responsibilities. Your teen can log into their own Cash App account directly, but you still hold full account ownership, oversight and parental control.
This means your teen can send and receive funds, set savings goals and even practice investing with your approval. But those activities can only happen within the spending limits you set, with age-appropriate merchants. And you can still lock or unlock their debit card any time, anywhere.
Once you’ve taught your teen the basics of smart personal finance — and once they become legal adults — it’s time for them to strike out on their own. At age 18, they’ll be prompted to convert their Sponsored Account to an individual Cash App account, just like yours. You’ll have peace of mind and confidence that they’ll make smart choices with money, because you’re the one who taught them.
Secure, modern family banking with Cash App
Cash App Families accounts offer the same security you count on to send and receive money through your own Cash App, plus enhanced safety and privacy measures designed to keep kids and teens safe from fraud. Advanced 24/7 fraud monitoring blocks suspicious transactions before they happen, and both Sponsored and Managed Accounts are eligible for FDIC insurance up to $250,000, subject to terms[4]. Plus, these accounts are automatically blocked from making transactions at age-inappropriate merchants, adding an extra layer of protection for your child.
Thanks to a robust suite of parental controls, you set the rules for your child or teen. Establish spending limits, get real-time transaction notifications and restrict where they can spend money right from your own Cash App. You can see transaction histories, monthly statements and progress on savings goals, and if needed, you can lock your child’s debit card instantly with just a tap in the app.
Here’s a rundown of how Cash App Managed and Sponsored accounts grow along with your family while keeping kids and teens safe and secure.
Help your child learn real-life, digital-first money skills. Open an account in Cash App Families today.
FAQ
How do I open an account for a child on Cash App?
Eligible parents or guardians can open an account for a child or teen within the adults’own Cash App account. Under the “Money” tab, scroll down to “Family” and tap “Start” to establish a managed account for kids or invite a teen to a sponsored account.
Can a 10-year-old log into the app on their own device?
No. For kids ages 6-12, all Managed Account activity happens in the parent’s Cash App account. There’s no way for the child to access their account independently.
What happens to a Managed Account when my child turns 13?
Cash App accounts for kids can be converted seamlessly into Sponsored Accounts with parental approval once the child turns 13. At this point, the teen can access Cash App on their own device, but parents can still set limits and track account activity.
Can friends or extended relatives send money to my child’s account?
Yes. Funds in Sponsored and Managed Accounts are eligible for FDIC pass-through insurance for up to $250,000 through Cash App’s partner institutions.
Are investing options available for children in these accounts?
It depends on the type of Cash App Families account. Managed Accounts for kids ages 6-12 block any access to stock trading and Bitcoin investing [6]. Sponsored Accounts can allow these features, but only with parental approval.
Are the funds held in Cash App Families accounts protected?
Yes. Funds in Sponsored and Managed Accounts are eligible for FDIC pass-through insurance for up to $250,000 through Cash App’s partner institutions.
Disclosures
[1] Cash App is a financial services platform, not a bank. Banking services provided by Cash App’s bank partner(s). Prepaid debit cards issued by Sutton Bank, Member FDIC. Cash App Visa® Debit Flex Cards issued by Sutton Bank, Member FDIC, and The Bancorp Bank, N.A., pursuant to a license from Visa U.S.A. Inc. See terms and conditions for the Sutton prepaid card at cash.app/legal/us/en-us/card-agreement, for the Sutton debit flex card at cash.app/legal/us/en-us/debit-flex-card-agreement-sutton and for the Bancorp debit flex card at cash.app/legal/us/en-us/debit-flex-card-agreement-bancorp.Savings provided by Cash App, a Block Inc. brand
[2] Parents and legal guardians can open a managed account for kids 6-12. To view the eligibility requirements for sponsoring a teen or child, please visit the Sponsored Accounts section of the Cash App Terms of Service at cash.app/legal/us/en-us/tos#sponsored-accounts
[3] Teens 13 to 17 can use Cash App with sponsorship by an eligible parent or guardian.To view the eligibility requirements for sponsoring a teen or child, please visit the Sponsored Accounts section of the Cash App Terms of Service at cash.app/legal/us/en-us/tos#sponsored-accounts.
[4] If you sponsor one or more Sponsored Accounts, your funds are eligible for FDIC pass-through insurance through Wells Fargo Bank, N.A., Sutton Bank, and/or The Bancorp Bank, N.A., Members FDIC, for up to $250,000 per customer when aggregated with all other deposits held in the same legal capacity at each bank, if certain conditions are met. See the Cash App Terms of Service at cash.app/legal/us/en-us/tos#fdic-pass-through-insurance Cash App is a financial services platform, and not an FDIC-insured bank. Prepaid debit cards issued by Sutton Bank, Member FDIC. Cash App Visa® Debit Flex Cards issued by Sutton Bank, Member FDIC, and The Bancorp Bank, N.A., pursuant to a license from Visa U.S.A. Inc.
[5] Cash App will pass through a portion of the interest paid on your savings balance held in an account for the benefit of Cash App customers at Wells Fargo Bank, N.A., Member FDIC. To earn interest on your Cash App savings balance, you need to have sponsor approval. Exceptions may apply. Savings yield rate is subject to change.
[6] Brokerage services provided by Cash App Investing LLC, member FINRA/SIPC, subsidiary of Block, Inc. Stablecoin, Bitcoin Map, and Lightning Network are not available to New York residents. Bitcoin services provided by Block, Inc. Bitcoin services are not licensable activity in all U.S. states and territories. Block, Inc. operates in New York as Block of Delaware and is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Investing and bitcoin are non-deposit, non-bank products that are not FDIC insured and involve risk, including monetary loss. Cash App Investing does not trade bitcoin and Block, Inc. is not a member of FINRA or SIPC. For additional information, see the Bitcoin and Cash App Investing disclosures at cash.app/legal/us/en-us/bitcoin-disclosures and cash.app/legal/us/en-us/disclosures-in-app
