Cash App For Kids: What Parents and Teens Need to Know

Mobile cash apps have become popular, secure ways for parents to manage allowances and for kids to pay for expenses at school, for sports, hobbies, and other daily needs.

Options are plentiful to manage money between parents and children. You can send direct bank transfers via Zelle, manage shared accounts on platforms like Cash App or Current, or make transfers between mobile wallets including PayPal and Venmo.

In this article, we will detail how teens can take advantage of the features offered by Cash App (by Block, Inc). Let's explore the capabilities, signup process, restrictions, and our top picks for alternative cash apps for kids!

How Do I Use Cash App When Under 18?

Anyone 13 years or older can sign up for a Cash App account. However, you will have less access to features if you cannot verify your identity by social security number or if you are under 18 years old.

Luckily, Cash App customers between 13 and 17 can get access to expanded features in the US if you have a sponsored account, which is supervised by a parent or guardian.

What is a Cash App Sponsored Account?

A Cash App sponsored account is an account that is legally owned by a parent or trusted adult. The sponsor must first own a verified Cash App account of their own. Then, they can invite a child between 13 and 17 to become an authorized user.

If you are a teen, you can download the app first. Then, you'll use the app to send a sponsorship request to your parent.

With a sponsored account, the teen will be able to send and receive money, use a Cash Card, use Boosts, get direct deposits, and even access bitcoin and stocks. Sponsors will be able to track their child's activity, turn off certain features, and cancel sponsorship at any time.

Once the authorized user successfully verifies their age upon turning 18, the sponsorship will be cancelled. The 18-year-old will become the full legal owner of their own account, and the former sponsor will lose access to visibility and control.

Cash App Features for Teens

Cash App is one of the easiest apps to open and has some of the best features for families. Check out this list below to see how parents and teens can manage their daily expenses together.

Teens with sponsored Cash App accounts can do the following:

• Receive recurring allowance payments;
• Send, receive, and request $1,000 per 30 days;
• Add max of $7,500 to their balances;
• Cash out max of $25,000 once a week;
• Use Cash Card to spend at stores;
• Withdraw cash from ATMs with Cash Card;
• Deposit paper cash ($250 per 7 days, $1,000 per 30 days);
• Access Cash Boost;
• Buy Bitcoin (up to $400 per 30 days);
• Buy stocks (up to $400 per 30 days).

You can also rest assured that FDIC insurance up to $250,000 applies to your Cash App balances (including your savings). Cash App works with their partner banks to provide this insurance to the cash balances of both the sponsor's account and the sponsored teen's account.

However, Bitcoin and investing balances are not covered by FDIC insurance, and you will be liable for any losses. Please take note that investing and purchasing bitcoin involves risk, and that you may lose money.

Kids Cash App Restrictions

In addition to the feature set above, sponsors can set spending limits. Transactions made on the account will be fully visible as well, so you can supervise your child's use.

Kids can invest and buy bitcoin with Cash App, but only with the permission of the sponsor. Sponsors will have to go through an approval process to unlock access. Once unlocked, the sponsor will still be able to see all transaction history and activity.

Here are the Cash App features that only verified account holders 18+ can access:

• Borrow;
• Check Deposit;
• Cross-Border Payments;
• Phone support.

Cash App Card for Kids

Teens can use the Cash Card to deposit cash by ATM, withdraw cash by ATM, and spend with the card.

Cash App also offers a "Boost" feature when you spend with the card. Boosts are instant rewards and savings that you can get when you spend at participating retailers like Starbucks, Walmart, Chipotle, CVS, and many others.

Risks of Using Peer-to-Peer Cash Transfer Apps

The financial technology of app platforms like Cash App, Chime, and Venmo is safe and secure. While Cash App is not a bank. it works with its partner banks, such as Sutton Bank Member FDIC, to issue debit cards and provide banking services. The Cash Card uses a license from Visa U.S.A., Inc. Your cash balances are insured by Federal Deposit Insurance Compensation (FDIC) to keep your deposits safe. So in the unlikely case of bank failure or company insolvency, your balances will be safe.

The main risk you need to be aware of is sending money to the wrong person. Transfers made on peer-to-peer payment apps like Cash App, Zelle, Venmo, and others are like handing cash to someone.

If you accidentally send money to a user, or want a refund from a vendor, Cash App cannot guarantee that you get your money back. You should only send money to people you trust and use your debit card at trusted, secure shops.

6 Great Cash Apps for Teens

Platforms like Cash App and Current let parents directly supervise the allowances and spending of their kids. Other apps are simply mobile wallets that let you transfer money between accounts, but do not offer dual management capabilities.

Let's look through a few Cash App alternatives for teens to compare their advantages and drawbacks:

1 — Cash App

As we explored above, Cash App offers top-quality accounts for parents to manage the finances of their kids. It's also one of the most widely used and trusted apps in the country.

Anyone between 13 and 17 can open a Cash App account. To access all features, teens will need a verified parent or trusted adult to sponsor them. Upon approval, teens can receive recurring allowances, save, spend with a debit card, and more. Parents have the flexibility to set limits, cancel sponsorship, and view all transaction history.

Learn more: Read our guide on Cash App or visit their website.

2 — Current

Current is another contender for best cash app for teens. Like Cash App, there are no subscription fees or hidden fees. Parents can send instant transfers, set spending limits, automate allowances, and view your child's debit card spending.

Current has a few other standout features for families. Parents can block certain merchants, assign chores to complete, and allow other family members to add funds.

Learn more: Read our in-depth Current review or visit their website.

3 — Chime

Chime is an excellent app that gives customers a free US checking account. It is one of the most widely used fintech apps in the United States. It comes packed with features, including an optional savings account, optional credit builder card, and free instant transfers between Chime account holders.

However, Chime is only available to customers 18+ with a social security number. It does not have joint account or parental control capabilities.

Learn more: Read our in-depth Chime review or visit their website.

4 — Venmo

Venmo is a mobile wallet app that issues debit cards to spend in the United States, and in US territories. Parents and legal guardians with Venmo accounts can apply for teen accounts for their kids.

You'll be able to monitor your kid's balance from the Venmo app and get real-time spending alerts. You can adjust privacy settings, view transactions, or lock the debit card at any time. The main drawback with Venmo is that it is purely a mobile wallet; it lacks some interesting features like savings, investing, and credit building.

Learn more: Read our guide on Venmo alternatives.

5 — PayPal

PayPal is a mobile wallet that's offered worldwide, best known for its fraud protection technology. In addition to offering a mobile wallet to send and receive money, PayPal offers business features, credit cards, and Pay Later tools.

However, PayPal requires account holders to be 18 and older. It does not offer teen accounts or parental control tools. We also highly discourage using PayPal to send money internationally or to spend overseas. Overall, we think apps like Cash App, Current, and Chime may be better alternatives for families with teens.

Learn more: Read our in-depth PayPal review or visit their website.

6 — Zelle

Zelle is technology that integrates with nearly every bank across the United States to help you transfer money instantly to friends and family (instead of waiting the usual 1-3 business days). The Zelle app does not offer you a US checking account, as its only purpose is to send money from bank to bank.

Zelle is a solid option to send and request money between family members, but it does not come with checking accounts, parental controls, debit cards, or other family-management features.

Learn more: Read our guide on Zelle alternatives.

Cash App Safety Essentials: 10 Tips for Parents and Kids

Opening supervised cash accounts for your kids is a great way to teach them about online safety and financial planning. Here are a few of the most important practices to keep in mind when using digital cash apps:

1. Explain the risk of no refunds: Help kids understand that cash transfer apps equate to sending cash. They are not like credit, which can be disputed and more easily refunded.
2. Double check your transactions: Double-check recipient details to avoid sending money to the wrong person.
3. Only connect with known contacts: Exchange money only with people you know. Scammers are well-documented using cash apps to ask for money.
4. Stay informed about scams: BBB Scam Tracker is a great resource that shows examples of scammers targeting users.
5. Protect personal data: Never share passwords or personal information. If suspicious links that look like they are coming from a cash app company, and they ask for your password, never respond. Report it to the relevant authorities, such as the Bureau of Consumer Protection.
6. Use a VPN: Subscribe to data protection software like Express VPN to protect your devices and cash apps from hackers.
7. Turn on app security: Teach kids to use strong passwords, PIN codes, facial ID, multi-factor identification, and fingerprint ID for added protection.
8. Consider using credit: The main advantage of opening a line of credit with a bank or credit card company is fraud protection and making transaction disputes. Be aware that failing to pay off your credit card debt in full each month will lower your credit score, and cost you in interest fees.
9. Keep low app balances: Maintain minimal balances in your child's cash app account. In the case of lost funds to scams or fraud, losing $100 is always better than losing $1,000.
10. Teach financial literacy: Cash apps represent opportunities to educate kids about financial literacy, from interest rates on savings to compound interest on investments.

Disclaimers About Cash App

Brokerage services by Cash App Investing LLC, member FINRA/SIPC, and a subsidiary of Block, Inc. Investing and purchasing bitcoin involves risk; you may lose money. Bitcoin trading is offered by Block, Inc. Cash App Investing does not trade bitcoin and Block, Inc. is not a member of FINRA or SIPC. For additional information, see the Bitcoin and Cash App Investing disclosures.

Cash App Investing is a self-directed service; you are solely responsible for orders placed through your account. Cash App Investing does not provide investment advice or recommendations.

Fractional shares investing may involve additional risks such as non-transferability. For additional information regarding the unique risks and limitations of fractional shares, please see your Investing Customer Account Agreement.

Disclaimers About Chime

Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank, N.A. or Stride Bank, N.A.; Members FDIC. Credit Builder card issued by Stride Bank, N.A.

¹ Out-of-network ATM withdrawal fees apply except at MoneyPass ATMs in a 7-Eleven location or any Allpoint or Visa Plus Alliance ATM.

² To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.

³ The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is accurate as of November 17, 2022. No minimum balance required. Must have $0.01 in savings to earn interest. The average national savings account interest rate of 0.21% is determined by FDIC as of November 17, 2022 based on a simple average of rates paid (uses annual percentage yield) by all insured depository institutions and branches for which data are available. Visit National Rates and Rate Caps to learn more.

⁴ On-time payment history can have a positive impact on your credit score. Late payment may negatively impact your credit score. Results may vary.

⁵ Chime SpotMe is an optional, no fee service that requires a single deposit of $200 or more in qualifying direct deposits to the Chime Checking Account each month. All qualifying members will be allowed to overdraw their account up to $20 on debit card purchases and cash withdrawals initially, but may be later eligible for a higher limit of up to $200 or more based on member's Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your limit. Your limit may change at any time, at Chime's discretion. Although there are no overdraft fees, there may be out-of-network or third party fees associated with ATM transactions. SpotMe won't cover non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. See Terms and Conditions.

References Used In This Guide

Families. Cash App. Accessed 27 September 2023.
Teen Banking. Current. Accessed 27 September 2023.
Teen Debit Card. Venmo. Accessed 27 September 2023.
Venmo Teen Account. PayPal. Accessed 27 September 2023.
Why do I need to verify my identity? Cash App. Accessed 27 September 2023.
Cash Card Minimum Age. Cash App. Accessed 27 September 2023.
Cash Boost. Cash App. Accessed 27 September 2023.
Authorized Users Under 18. Cash App. Accessed 27 September 2023.
Sponsorship and Safety. Cash App. Accessed 27 September 2023.
Features and Limits on Family Accounts. Cash App. Accessed 27 September 2023.
Request Sponsorship for Family Accounts. Cash App. Accessed 27 September 2023.
Sponsor Controls and Visibility. Cash App. Accessed 27 September 2023.
Transaction Restrictions for Family Accounts. Cash App. Accessed 27 September 2023.
Sponsored Accounts Turning 18. Cash App. Accessed 27 September 2023.