While the era of grinding for each dollar isn’t completely over, navigating personal finance has undeniably become more complex than it was several decades ago. Getting a handle on budgeting and credit is just the tip of the iceberg—you now also contend with student debt, fluctuating mortgage rates, and possibly even ventures into cryptocurrency and non-fungible tokens (NFTs).
This can be overwhelming for adults. But for children? It’s a lot to take in!
At least, that is, unless you take the time to sit down with your children and make the significance of a solid credit score clear. To truly engage young minds, financial concepts need to be presented in an appealing manner. Interestingly, smartphone applications provide an excellent means for delivering financial education that resonates with kids.
The innovative creators of the financial apps that many adults appreciate have not overlooked the realm of children’s financial literacy. If you’re set on introducing your child to money management, there’s an array of applications available. Below, we explore seven engaging and educational options.
Why Is Financial Education Important for Kids?
Aren’t children already burdened with enough stress from grades, friendships, and what seems like an endless global health crisis? Absolutely, but adding financial literacy to their lineup of priorities—yours too—holds significant value.
Research indicates that financial knowledge can pave the way for better financial outcomes later in life. A study from 2017 revealed that gaps in financial understanding might contribute to up to 40 percent of the wealth disparity between individuals approaching retirement with differing levels of savings.
It’s a fair assumption that enhanced financial conditions at retirement age stem from better credit scores accumulated over the years, and studies suggest that financial education correlates with improved credit ratings. According to a three-state study funded by the FINRA Investor Education Foundation in 2015, high school students who received comprehensive financial education boasted credit scores that were, on average, around 20 points higher.
However, as of 2020, only 21 states mandated personal finance classes for high schoolers, as reported by the Council for Economic Education.
In summary, financial literacy has the potential to create a substantial, potentially lifelong impact in children’s lives—but there’s no assurance they will acquire this knowledge through school systems.
So, what can busy parents do? Exploring these seven financial education apps for kids could be a terrific starting point.
1. RoosterMoney
RoosterMoney serves primarily as an allowance management app for children, making it particularly useful for teaching the principles of saving toward both short-term and long-term objectives. Children can track their available funds and project future savings while utilizing virtual safes within the app until they achieve their set financial aspirations.
The allowance management feature of RoosterMoney is free, yet premium functionalities like chore tracking and interest calculations require a small annual subscription fee.
- Apple: 4.7
- Google Play: 4.4
2. AdVenture Capitalist
This enjoyable and straightforward game transcends mere personal finance and introduces children to the concepts of business and investment. Players start with a simple lemonade stand but quickly find themselves hiring staff, scaling their enterprises, and even attracting angel investors.
AdVenture Capitalist can be downloaded for free; however, be mindful that it features several in-app purchases.
- Apple: 4.7
- Google Play: 4.5
3. The Game of Life
The endpoint of this digital rendition of the classic board game lands on the yellow tile marked “Retirement,” aligning perfectly with the average individual’s ultimate financial objective—a secure retirement.
While there’s plenty of enjoyment unrelated to finances along the journey, the foundational economic principles introduced in The Game of Life are readily apparent to young players. Designed for tablet use, this app does come at a small cost to download.
- Apple: 4.5
- Google Play: 4.2
4. FamZoo
While personal finance can be chaotic for adults, FamZoo creates a more manageable, zoo-like experience specifically for kids. Ideal for children who have a basic grasp of allowances, this app allows for the creation of a virtual “family bank” and provides kids with prepaid debit cards.
The application also tracks expenditures, chores, interest, and even investments initiated by parents. There is a monthly subscription fee associated with this app, so consider that when planning your budget.
- Apple: 4.6
- Google Play: 4.7
5. Verizon Family Money
The Verizon Family Money app provides comprehensive financial management specifically designed for children. Parents can manage allowances and issue prepaid debit cards to their kids. This free app simplifies the process of monitoring spending, setting limits, and even temporarily suspending cards.
- Apple: 4.5
- Google Play: 4.1
6. Bankaroo
Bankaroo originated from a family project initiated by 10-year-old Dani Gafni, who sought a solution for managing spending money, which led their parents to create an app. Today, Bankaroo serves as a tool for financial education in families and schools globally. Parents can allocate funds, establish allowances, while children define savings objectives, track expenses, and earn achievement badges. Notifications and emails from the app keep parents or teachers informed.
For families, there is a one-time download fee, while schools with more than 20 students will incur a monthly or annual charge.
- Apple: 3.4
- Google Play: 5.0
7. Toshl Finance
Toshl Finance is ideal not just for teenagers, but it is also straightforward and secure enough for teens wanting to enhance their financial management skills. This app’s true benefit is that it consolidates all of your teen’s financial accounts—like their bank, credit card, investment portfolios, and even cash—all in one user-friendly spot.
The app offers a free one-month trial, but following the trial period, a monthly fee of a few dollars will be required to continue using its features.
- Apple: 4.7
- Google Play: 4.4
