Financial literacy is essential for all age groups, especially children, as they develop habits that will benefit them in the long run.
Recently, Google announced a new feature that enables children with Android phones to make in-store purchases using Google Wallet.
Parents and guardians will still need to load the payment card, and they will be notified by email whenever their child makes a transaction. They will also be able to manage and track activities through Google’s Family Link parental control app.
While kids will be able to use Google Wallet to access items like event tickets, library cards, and gift cards, they currently won’t be able to use it to pay for online purchases. Additionally, these services will only be available to users in the U.S., UK, Australia, Spain, and Poland.
Giving Kids the Reins
Youth banking and payment accounts have surged in recent years. While traditional banks like Bank of America and Chase offer such services, peer-to-peer apps like Venmo and Cash App have also introduced products specifically geared toward kids.
Additionally, youth-centric apps from GoHenry and Greenlight not only provide bank accounts and debit cards but also feature interactive lessons to teach kids healthy spending habits.
While some parents may hesitate to give their kids the reins to these financial tools, all these options include features that allow parents to set limits and monitor their children’s activities.
Building Banking Relationships with Young Customers
Parental buy-in is the most important factor for gaining traction in the highly desirable youth market. This space has become competitive, as Gen Alpha—children born in the last 15 years—is expected to surpass two billion people.
Not only will Gen Alpha be the largest generation ever, but they will also be highly tech-savvy and likely to have plenty of spending power. Brands that establish strong relationships with younger users early on will be best positioned to retain them into adulthood.
While these factors likely contribute to Google extending its digital wallet functionality to kids, there is another aspect to consider. Apple already allows kids to use Apple Pay for in-store purchases with its Apple Cash Family app.
