The start-up company Step is developing an app that will give teens access to bank accounts with no minimum balance, no fees, and advice on how to manage their money. The app will integrate with Apple Pay and other online money-moving apps. It will also give parents the option to monitor the account and set limits and guidelines.
“Schools don’t teach kids about money,” Step CEO and co-founder CJ MacDonald said. “We want to be their first bank accounts with spending cards, but we also want to teach financial literacy and responsibility. Banks don’t tailor to this, and we want to be a solution teaching the next generation of adults to be more responsible with money in the cashless era. It was easy with cash to go to the mall but now everyone is using their phone for Uber and more.”
Sherri Haymond of Mastercard praised the new app in a press release, noting how it would incorporate new avenues of financial literacy to account for changes in the way that people access their money.
“Today’s young people are digitally savvy, having grown up with technology as a mainstay in their day-to-day lives. As a result, we also need to ensure that they become familiar with the unique aspects of digital payments including providing education about the various finance and payment products available,” Haymond said. “Step has taken a thoughtful approach to developing an offering for teens and families that provides that first step in educating and acclimating today’s youth to help them gain confidence and awareness around their finances.”