Monzo: bank unveils plans to launch fee-free kids account to teach savings - with brightly coloured cards

• A popular digital bank is launching a new fee-free account for children under 16
• The account will allow kids to set savings goals and manage money with "pots”
• The account includes a vibrant card in pink, yellow or blue, and offers in-app guidance on money management
• Available for children aged 6 to 15, the account has no charges for signing up, adding funds or spending abroad
• Parents can link their accounts to their child's, set spending limits and control features like cash withdrawals and online payments
• A survey found that over 70% of parents wish they had been taught money management skills at a younger age

Digital bank Monzo has announced plans to introduce a new account designed for children under 16, allowing them to set savings goals and manage their money using “pots.”

The account will feature a vibrant Monzo card available in pink, yellow, or blue, along with in-app guidance to help children learn about money management.

The fee-free account is available for children aged six to 15, with no charges for signing up, adding funds or spending abroad. Children can “graduate” to an account for 16 and 17-year-olds and again to a full Monzo account when they become an adult, the bank said.

TS Anil, the bank's CEO, said the account will include popular Monzo features, enabling kids to customize their app and card experience.

It will give children 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, the bank said.

Rachel Springall, a finance expert at Moneyfactscompare.co.uk said: “It’s great to see more competition in the market to encourage the savings habit and for under-16s to learn how to manage their own money.”

Springall said that account providers do not always offer products for children as young as six.

She added: “Budgeting and saving for a rainy day is a life skill which might not come naturally to some or indeed passed down, so getting into such a routine might seem a hassle.

“This is why digital apps and accounts that provide real-time balances and teach money management skills are a great asset to enhance any financial education.”

Parents will have the child’s account linked to their own, and can choose to be notified when their child spends. Parents can set spending limits and use controls to turn cash withdrawals and online payments on or off.

Springall said: “Parental access is also essential to ensure their children are spending safely, and it’s good to see this Monzo account allows them to quickly turn off cash withdrawals or online payments.”

How to get the account

Parents or guardians can join a waitlist for the new account, with the first customers getting access later this summer and the product being rolled out over the months ahead.

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 said they want their children to understand how to save pocket money, with just over two-fifths saying they want their children to understand how to create a budget.

We'd love to hear your thoughts on Monzo's new account for children! Do you think it's a good way to teach kids about money management? Share your opinions, experiences, and any questions you have in the comments section.