Current, a startup, has launched a new app aimed at helping parents give kids their allowance.
According to a report in TechCrunch, Current offers customers a Visa debit card that lets teenagers purchase things in stores or on the internet using money from their own bank account that they get via allowance for doing chores. The money is transferred from the parent’s bank account to their children’s accounts and the app. Parents can use the mobile app that accompanies the debit card to set a list of chores, track the spending of their children, encourage their kids to save and teach their children how to manage money.
“I worked on Wall Street for seventeen years as a trader and manager,” said Stuart Sopp, the founder of Current, in an interview with TechCrunch. “Now as a father, I wanted to build something with financial discipline that would help [my daughter].”
The service can also enable parents to further move away from cash by bringing allowance to the digital world. The app, which is available in both iOS and Android, enables parents to set guidelines and expectations in terms of how they earn money, but also how it’s spent.
TechCrunch noted the app and Visa debit cards gives children a sense of independence, but at the same time, parents can still track spending and control what their children purchase. The app enables parents to set limits on how much can be spent on any given day or how much money can be withdrawn from an ATM. What’s more, parents have the ability to block the debit card from being used in places that aren’t kid appropriate — like a casino or bar — reported TechCrunch, noting parents can even block specific merchants once an initial purchase has transpired.