Money transfer app Venmo this week announced a new service for teenagers that hopes to educate teens on "financial responsibility."
The application is among those that allow users to easily transfer money from one person to another with a few taps on the phone.
Venmo says 13 to 17-year-olds can now sign up for an account with the approval of a parent. The app will also allow teens to sign up for a Venmo debit card.
Venmo says the new accounts will allow parents to "monitor transactions, manage privacy settings, send money to their teen, and will help parents to educate their teens on creating healthy money habits."
"Venmo is a natural place for teens to learn how to engage with money responsibly, especially considering 86% of Gen Z are interested in using an app to learn about personal finance," said Erika Sanchez, vice president and general manager of Venmo. "For parents or legal guardians, the Venmo Teen Account allows them to give some financial flexibility to their teens, while giving them parental controls and visibility into their teen's spending habits."
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Additionally, Venmo says that teens can obtain an ATM card that can be used for free, and is linked to their Venmo account.
Most banks offer debit cards for teens as young as 13, but most banks require customers to be 18 to have their own checking account.
As to when is the right time for a kid to have a credit or debit card, that's up to the parents, experts say.
"There's no universal age when it suddenly becomes appropriate to get your children a credit or debit card. It depends on the kids — how responsible they are and how often they need to buy things when a parent isn't around. The decision is often forced upon families when it becomes inconvenient for the children not to have a card," NerdWallet says.
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