The 5 Best Financial Literacy Apps for Kids

Published on April 4, 2024 at 8:15 PM

I can unfortunately relate to an infinite number of memes that joke about how unhelpful math class was for real-life money management. I also didn't have the benefit of having parents that were great at handling money, or talking about it, which left me making some questionable credit decisions in my early adulthood that took a while to recover from.

Luckily, I learned how to make better financial decisions and began money conversations with my own children at a fairly early age. "Kids are super smart, and they see everything you do," Ben Jones, CPA and founder of EduCounting tells POPSUGAR. "If you waste money or are anxious about it, they'll see that and learn from it."

I started talking to my children about money when they were each around 4 years old. It began with conversations around things like the difference between dollars and coins and how we buy things at stores. Then, my husband and I started giving our kids allowances at age 5 (one dollar for every year of their age) and helping them learn what those dollars could be used for.

Originally, we used the MoonJar toy bank but I could only handle so many trips to the store watching my kids carefully count all their coins to buy Pokémon cards before I figured there had to be a better way to improve their financial literacy (and our shopping trips).

So, I delved into the world of financial literacy apps for kids, and was pleasantly surprised to see the options out there. "Kids live on technology and want money," BusyKid CEO Gregg Murset says. "Why not combine the two to instill a foundation that can help them avoid life's basic money pitfalls?".

Best of all, financial literacy apps aren't just for older kids. "Kids generally understand the concept of money by the time they're preschool age," says Jennifer Seitz, certified financial education instructor and director of education at Greenlight. "That means parents can introduce age-appropriate basics — like what money is used for, how we earn it, and how much things cost — at a pretty young age."

My research helped me find great financial and allowance apps for kids of varying ages, ones for larger households, and even an option that helps older kids start building credit. Below, we cover the pros and cons of the five best financial apps for kids.

As for which app is ultimately right for your family? Seitz suggests a few considerations: "Choose apps with parental controls that fit your needs. Be aware of any fees or costs associated with the app and compare different ones to see their value for the services provided. Finally, consider the app's long-term viability and potential to grow with your child's evolving financial needs. Having a solid foundation of financial literacy during childhood can set the stage for lifelong financial wellness as your kids transition into adulthood."

BusyKid

Price: $4/month

BusyKid, a debit card and app, allows parents to pay kids an allowance, as well as "bonus" payments for things such as birthday money. The money can be categorized in one of three ways: save, spend, and share. At any time, a parent or child can transfer money to the child's debit card to spend.

BusyKid includes the option to donate to charities using the app as part of a child's financial education. They also offer an investing option with no commissions for stock transactions. In their investing option, a child can invest as little as $10 in any stock of their choosing.

For example, my daughter, who loves to travel, has purchased $10 worth of stock in United and Southwest Airlines at different times. These are partial shares, but still gain and lose money in real time, a function that helps kids get real-life experiences. Murset says a "sound financial foundation is made up of knowing how earning, saving, spending, investing, and donating all work together."

Pros:

One account can accommodate up to five kids and two adults.
Kids have the option to invest in charities or the stock market, showing that finances are about more than just buying or saving.
The "BusyPay" feature allows your child to accept money via a QR code, which is great for relatives that want to send money for gifts or if you have an entrepreneur that likes to sell things.
The app offers options for recurring allowances, payments for chores, and the ability for parents to offer a "savings match" for what their child does save in their account.

Cons:

If your child engages in the investing option, it can take a few days for the money to be returned to them once they sell their shares of stock.
It also costs money to replace a lost card, something that other options don't charge for.
Many other options offer in-app games and learning lessons to teach kids more about financial literacy such as compounding interest. BusyKid has online content like this through a partnership, but it isn't offered in-app which makes it a bit harder to access.

Greenlight

Price: Ranges from $5-15/month

Greenlight is a debit card and app that helps teach kids about money management. It allows parents to have stronger control over how their child spends their money by setting spending limits on specific stores. It also offers plans with cashback rewards, an annual savings reward, and an investing platform, although those cost extra.

Greenlight also offers the opportunity to gamify financial literacy through its
Level Up, a financial literacy game that teaches money skills aligned with the National Standards for K-12 Personal Financial Education. Seitz recommends the game as a way of keeping kids engaged in learning about finances, in addition to"using real-life examples such as budgeting for a pet, including them in family conversations around household expenses, sharing books, and offering them practical experience with a debit card."

Pros:

Greenlight offers customizable cards, which kids love, at no added cost.
Perhaps most importantly, Greenlight allows parents to set spending limits by store and category.
There is a freeze feature in case your child misplaces their debit card.
A chore chart also allows parents to connect allowances to housework.

Cons:

The monthly fees increase considerably if you want to take advantage of options like investing and 1-percent cashback.
Accounts can't accept direct deposits from PayPal, Apple Cash, or Venmo.
It can be difficult for multiple parents or guardians to manage the app without a joint account.

GoHenry

Price: $5 a child per month or $10/month for a family of four

GoHenry is a joint card and app that allows parents to pay child allowances on a debit card. If you are a family with an allowance system already in place, GoHenry might make your lives a little easier to manage financially.

GoHenry shines in its lessons, which are interactive videos and quizzes known as "Money Missions." The content is created by financial professionals and teachers based on national standards and allows kids to earn points and badges as they complete the missions. The lessons are catered to a child's age, ranging from 6 to 14 years old. This age span is important, says Jones. "You have to meet a kid at a level they can understand," he adds. "If you try to teach too fast, they'll lose interest."

Pros:

GoHenry allows instant money transfers to your child's account.
There are also payment options for chores, automated allowances, and gifts from family or friends.
You can set savings goals for your kids.
Parental controls include spending limits set by the day, week, and month, as well as in-store, online, or ATM withdrawals.

Cons:

The pricing structure is more expensive than other similar apps.
You can only add funds to the account using a credit or debit card.
Children can't pick their own PIN.
Some businesses, such as convenience stores and restaurants where they sell age-prohibited items like alcohol, may not accept the card due to restrictions on the account.

Step

Price: $0 for basic card, $99/year for Step Black

Step is a secure spending card geared toward teens and older kids. Similar to the other options, a kid can only spend the money that's in their Step account, but the money spent is reported to the credit bureaus as if it were a credit card. This helps teens build a credit history without the risk of overdrafts, credit card debt, or paying interest.

"Bad financial decisions live with you for a long time," Jones says. "You can pull yourself out of debt, but it can restrict a lot of your options in the meantime: jobs, interest rates, insurance premiums, housing, and more." Giving your kids a step up in understanding and building credit can give them a huge advantage in the financial landscape.

If you set up your Step account with a direct deposit of at least $500 each month, the card offers the ability to earn up to 5 percent in savings rewards. There are also cashback offers from stores, referral bonuses, and a savings round-up option. The Step card also offers the ability to start investing in stocks, exchange-traded funds, and Bitcoin with as little as $1.

Pros:

Step allows kids to get a head start on a good credit score right at 18.
There are cashback rewards, early deposit options, and savings rewards with direct deposit.
Cards can link to Zelle, Venmo, CashApp, and Paypal.
Step offers a six-lesson financial literacy program called "Money 101."

Cons:

It can take a few weeks to receive the card after signing up.
It's hard to deposit cash into the account because there aren't any physical branches.
If your child is paid by cash or check you'll have to find a work-around for deposits.
There is a daily withdrawal limit of $250.

FamZoo

Price: $6/month

FamZoo is a great app if you are looking for an even more risk-free way to familiarize your kids with finances. It offers two options: an IOU account that works as a ledger, and a prepaid card parents load. FamZoo allows an account to be mixed between the two, so you can balance some money in the IOU and some on the card, letting parents adjust spending for each child as needed.

FarmZoo has a few more unique features, including a private online community for parents. The app is also free for those who only use the IOU function.

Pros:

Checklist alerts from the app give kids friendly reminders about overdue chores or new jobs that have been assigned to them.
You can offer "Family Loans," with or without interest, to help kids kick off a business like a lemonade stand.
You can teach the power of compound interest by offering to pay interest on the money your child sets aside as savings.

Cons:

The monthly fee is a bit higher than most other options at $6.
There is no option to learn about investing.
There aren't parental controls over spending amounts or locations.

Tiffany Nieslanik is a freelance writer in Denver, CO, with over a decade of experience. She generally covers working motherhood, parenting, travel, music, and lifestyle trends.