JPMorgan Chase launches bank account for kids
JPMorgan Chase is expanding its product range to customers as young as 6 years old.
The company already caters to high schoolers and college students with dedicated checking accounts. With the launch of Chase First Banking this week, it’s providing an account for children that gives parents control over the experience.
First Banking resembles the offerings from challenger banks aimed at Generation Z, such as Greenlight. In fact, JPMorgan collaborated with Greenlight for technology and insights into banking for parents and teens, though the account itself was built internally.
Increasingly, traditional banks of all sizes are trying to attract customers who belong to Generation Z.
The checking account is managed through the Chase mobile app, where it’s split into three components: Spend, Save and Earn. In the Spend section, parents can designate limits for different types of purchases, such as restaurants, online gaming or a general Spend Anywhere. Under Save, kids can name goals and set target savings amounts; a bar underneath each goal will chart their progress. The Earn section automates allowance (parents choose the amount and frequency) and lets parents schedule chores their children need to complete, with an optional monetary reward.
Kids also get their own debit cards that can only be used in accordance with the spending limits their parents set.
The app has 39 million active customers.
JPMorgan spent two months piloting the account with employees. One finding was that kids were logging in almost every day to check the progress of their savings goals.
“Having this account is like having a financial health learner’s permit,” Kavita Kamdar, head of Chase First Banking, said in a press release Monday. “Kids can learn how to manage money, and parents have the ability to guide their experience safely and in real time.”