Verizon announced that it has launched Family Money, a prepaid card on the Galileo platform issued through Metropolitan Commercial Bank. The goal is to help provide a tool for parents to help their children learn financial management skills at an early age.
Parents link their checking account to the Family Money app which creates the means to load funds onto their kids’ cards. The card comes with card controls that can block certain transaction types and establishes spending limits.
A savings account is also a part of the service. The cost is $5.99 per month for up to 5 prepaid cards, which is higher than many introductory checking accounts at traditional financial institutions.
Verizon joins many other prepaid and bank account solutions targeted at kids including those offered by banks and credit unions plus fintechs like Current, Greenlight, and Jassby. It’s not certain why Verizon chose to get into financial literacy for kids, but perhaps they are looking to gain brand recognition and appeal with their next client base.
Here’s what Banking Dive found:
Today (7/15/21), Verizon introduced a new tool for parents to help their kids as they take charge of their financial future. Starting today, Verizon and non-Verizon customers can try Verizon Family Money for 30 days on us1— a new, easy-to-use app and prepaid debit card that allows kids to save, spend, earn, and become money-savvy. Parents can step back and watch their kids become financially responsible as they help manage from the sidelines. Verizon partnered with Galileo, the API standard for card issuing and digital banking, to create the fintech platform Family Money is built on. The Family Money Prepaid Visa Card is issued by Metropolitan Commercial Bank.
With Family Money, we’re showing what’s possible when tech and financial services come together. Building on the success of products like the Verizon Visa® Credit Card and the tools we already have for families as they grow with us, like the Verizon Smart Family service and GizmoWatch, Family Money provides even more value to our customers based on their unique needs. It’s the perfect way to help kids learn the ins and outs of managing money and yet another way we’re providing real benefits to our customers outside of the reliable connectivity they know and love us for,” said Todd Oberstein, Executive Director Product Management and Development at Verizon.
Overview by Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group