UK-based digital bank Monzo has planned to launch a bank account for children under 16, letting youngsters set savings goals and organize money with ‘pots’. Monzo’s new account, which will come with a brightly coloured Monzo card in pink, yellow, or blue, will include in-app guidance for children on money topics.

The account has no fees for signing up, topping up, subscriptions, or spending abroad, and can be held by children aged six to 15 years old. Options for customisation and upgrading The digital bank’s officials said ‘favourites’ are included with the account, with tools for children to customise their app and cards to choose from. It will give them their first taste of saving and budgeting, as well as receiving scheduled pocket money payments and using a card to pay in a shop, while giving parents or guardians control and visibility to ensure children are managing their money safely.

Parents will have the child’s account linked to their own and can choose to be notified when their child spends, can set spending limits, and use controls to turn cash withdrawals and online payments on or off. Children can ‘graduate’ to an account for 16 and 17-year-olds and again to a full Monzo account when they become an adult. Teaching finances from a younger age It is understood that Monzo will be exploring potential options for interest on savings as it expands and develops its under-16s account.

A OnePoll survey for Monzo among 2,000 parents indicated that more than seven in 10 wish that they had been taught about money management at a younger age. Of the parents who discuss finances with their children, half (50%) said they want their children to understand how to save pocket money, with just over two-fifths (42%) saying they want their children to understand how to create a budget. .