Kids under 17 made fewer transactions this summer, though the average spend per transaction was 3.8% higher than last year. According to data from USAA Bank, the average number of transactions per youth checking account decreased by 26% in June and 7.8% in July year-over-year. It’s also worth noting that June had two fewer business days compared to last year.
Though kids might be spending more, they are largely doing so in predictable places. Some of the top 15 retailers for children included gaming providers Steam, PlayStation, and Microsoft and big-box retailers such as Walmart and Target. Other popular summer spending destinations for kids were restaurants like Chick-Fil-A, Starbucks, and Chipotle.
One of the most significant insights from the report was the increased use of peer-to-peer payment platforms like Venmo and Cash App. The average Venmo payment in July was up 8.9% year-over-year, and total spending via Venmo increased by 12.9%.
“Summer is typically one of the busier seasons for youth spending, youth deposits and new youth account openings,” said Lemont Williamson, Product Manager for Youth Product at USAA Bank. “In 2024, we saw continued spending, but, just like with mom and dad, teenagers are being a little more intentional with how often they reach for that debit card or payment app.”
Fraud Risks
Parents are often hesitant to give financial tools to their children, especially as fraud cases continue to rise. P2P apps have been frequent targets for criminals who send manipulative notifications about fake rewards or tech support issues.
Additionally, criminals frequently impersonate many of the popular brands that younger consumer frequent, like Microsoft and Best Buy. According to the FTC, Microsoft impersonation scams cost consumers a total of $60 million in 2023.
Healthy Spending Habits
While fraud will always be a concern, there are substantial benefits to giving children their own cards and accounts. Youth debit accounts provide parents with an opportunity to discuss healthy spending habits with their children, and most accounts for kids come with robust parental controls.
Beyond traditional bank accounts, fintechs like GoHenry and Greenlight offer youth-specific debit products that include interactive lessons on spending. P2P platforms also offer youth products, and though they may not include financial education tools, they can be a great way for introduce kids to the world of digital banking.
