The financial world is vastly different today than it was for previous generations. It’s no longer just about earning a paycheck; now we navigate budgeting, credit scores, student loans, mortgages, and even the complexities of cryptocurrency and NFTs. This intricate landscape can be overwhelming for adults, let alone children. Simply explaining the importance of a good credit score to a child might not resonate. Financial concepts need a more engaging approach to capture a young person’s attention. Fortunately, smartphone apps offer the ideal, kid-friendly solution for imparting financial wisdom.
The creative minds behind popular adult apps have also recognized the importance of children’s financial literacy. A variety of Apps To Help Kids Learn To Manage Money are available, making it easier than ever to start your child’s financial education journey. Let’s explore seven engaging and effective apps designed for this purpose.
The Crucial Need to Teach Kids About Money Management
While kids juggle school, friendships, and navigating an ever-changing world, it might seem like financial literacy is just another burden. However, equipping children with financial skills is increasingly important and beneficial for their future.
Financial literacy provides a foundation for improved financial well-being throughout life. Research emphasizes the significant impact of financial knowledge. A 2017 study revealed that disparities in financial literacy could account for as much as 40% of the wealth gap at retirement. This highlights how early financial education can lead to better financial outcomes later in life.
Furthermore, financial literacy is linked to better credit management. A strong credit score is crucial for various aspects of adult life, from securing loans to renting an apartment. A 2015 study funded by the FINRA Investor Education Foundation demonstrated that high school students with robust financial education had significantly higher credit scores – approximately 20 points higher on average.
Despite the clear benefits, financial education isn’t universally prioritized in schools. In 2020, only 21 states in the U.S. required a personal finance course for high school students, according to the Council for Economic Education. This gap underscores the need for parents to take a proactive role in their children’s financial education.
For busy parents, apps to help kids learn to manage money offer a convenient and effective starting point. These seven apps provide engaging and practical tools to introduce children to essential financial concepts.
1. RoosterMoney: Mastering Allowance and Savings Goals
RoosterMoney is primarily designed as an allowance app, but its strength lies in teaching children about saving for both short-term and long-term goals. The app visually presents their earnings and projected savings, allowing them to allocate funds into digital “safes” dedicated to specific financial targets they set within the app. This tangible representation helps children understand the concept of delayed gratification and saving for future needs.
The basic virtual allowance tracking feature of RoosterMoney is free, offering a solid starting point. For enhanced features like chore tracking, setting interest rates on savings, and a prepaid debit card for kids, a small annual fee unlocks premium functionalities. The prepaid card adds a layer of real-world experience, allowing kids to practice spending within a controlled environment.
- Apple App Store: 4.7 stars
- Google Play Store: 4.4 stars
2. AdVenture Capitalist: Exploring Business and Investing Fundamentals
AdVenture Capitalist takes a gamified approach to financial education, venturing beyond personal finance into the realms of business and investing. Starting with a simple lemonade stand, players progress to hiring employees, expanding their businesses, and even attracting angel investors. This engaging game introduces fundamental concepts of entrepreneurship, investment, and business growth in an accessible format.
AdVenture Capitalist is free to download, making it readily accessible. However, parents should be aware of in-app purchases, which can accelerate progress within the game but are not necessary for learning the core financial principles. The game subtly introduces the idea of capital, return on investment, and scaling a business, concepts that can be valuable even for young players.
- Apple App Store: 4.7 stars
- Google Play Store: 4.5 stars
3. The Game of Life: Visualizing Long-Term Financial Goals
The digital version of the classic board game, The Game of Life, culminates in the “Retirement” tile, effectively mirroring the long-term financial aspirations of many adults – a comfortable retirement. While filled with entertaining, non-financial scenarios, The Game of Life app subtly imparts foundational financial concepts to young players through the game’s progression.
Navigating life events within the game, players encounter choices and consequences that indirectly relate to financial planning and long-term thinking. Designed for tablets, The Game of Life app is available for a one-time purchase. It’s a fun way to introduce the idea of life stages and how financial decisions can impact future outcomes, even if it’s within a simulated environment.
- Apple App Store: 4.5 stars
- Google Play Store: 4.2 stars
4. FamZoo: A Family Banking Ecosystem
FamZoo creates a controlled “zoo-like” environment for kids to learn about personal finance, simplifying the often complex financial “jungle” for adults. Best suited for children with a basic grasp of allowances, FamZoo allows parents to establish a virtual “family bank.” A key feature is the option to provide kids with prepaid debit cards linked to the family account, offering real-world spending experience under parental supervision.
FamZoo tracks spending, chore completion, interest earned on savings, and even parent-funded investing accounts. This comprehensive approach provides a holistic view of family finances and allows for hands-on learning. FamZoo operates on a monthly subscription basis, representing a recurring cost to factor into the family budget. The prepaid cards and detailed tracking features make it a powerful tool for teaching responsible spending and saving habits.
- Apple App Store: 4.6 stars
- Google Play Store: 4.7 stars
5. Verizon Family Money: Holistic Money Management for Kids
Verizon Family Money is a comprehensive money management app specifically designed for children. Parents can easily set up allowances and provide their kids with prepaid debit cards. This free app simplifies tracking spending, setting spending limits, and even temporarily freezing cards if needed. The app provides parents with control and visibility while giving kids a degree of financial independence and responsibility.
The app’s free availability makes it an attractive option for Verizon customers. Its features focus on practical money management skills, such as budgeting, tracking expenses, and understanding the use of debit cards, all within a safe and monitored environment.
- Apple App Store: 4.5 stars
- Google Play Store: 4.1 stars
6. Bankaroo: From Family Project to Global Financial Education Tool
Bankaroo originated as a family project when 10-year-old Dani Gafni sought a better way to track her spending money. With parental support, the app was created and has since evolved into a financial education tool used by families and schools worldwide. Parents can deposit funds, automate allowances, and kids can set savings goals, log expenses, and earn achievement badges, adding an element of gamification. Parents and teachers can monitor progress through app notifications and email updates.
Bankaroo offers different pricing models: a one-time download fee for families and monthly or annual fees for schools with over 20 students. Its simplicity and focus on core financial concepts make it suitable for younger children and educational settings.
- Apple App Store: 3.4 stars
- Google Play Store: 5.0 stars
7. Toshl Finance: Money Management for Teens and Beyond
While not exclusively for teens, Toshl Finance is user-friendly and secure, making it ideal for teenagers who want to learn effective money management. Its key strength is providing a centralized platform to manage various financial accounts, including bank accounts, credit cards, investment accounts, and even cash holdings. This comprehensive view helps teens understand their overall financial picture.
Toshl offers a free one-month trial, allowing users to explore its features. After the trial, a monthly subscription fee applies. For teenagers starting to manage more complex finances, Toshl provides a valuable tool for budgeting, tracking expenses across multiple accounts, and gaining a deeper understanding of their financial inflows and outflows.
- Apple App Store: 4.7 stars
- Google Play Store: 4.4 stars
Teaching kids about money management is an investment in their future financial well-being. These apps to help kids learn to manage money offer diverse approaches, from gamified learning to practical banking simulations, making financial education engaging and accessible for children of different ages and learning styles. By leveraging these tools, parents can empower their children with the financial literacy skills they need to thrive in today’s complex world.
