Chore-based banking apps are designed to help parents teach their children about money management by tying chores to allowance and providing tools for saving, spending, and sometimes even investing. Here's a breakdown of what they are, how they work, and some popular examples:

What are Chore-Based Banking Apps?

These apps are essentially digital banking platforms with features specifically tailored for kids and teens. They usually involve:

• Parent Accounts: Parents have a primary account linked to their existing bank account.


• Child Accounts: Parents create sub-accounts for their children.


• Allowance Automation: Parents can set up recurring allowances to be automatically transferred to their children's accounts.


• Chore Tracking: Parents can assign chores with specific monetary values. Children mark chores as complete, and parents approve them, triggering the payment.


• Debit Cards: Many apps offer prepaid debit cards for kids, allowing them to spend their money responsibly. These cards often come with parental controls.


• Spending Limits and Controls: Parents can set spending limits, restrict spending categories (e.g., no alcohol or gambling), and receive notifications about their child's spending.


• Savings Goals: Children can set savings goals within the app and track their progress.


• Educational Resources: Some apps include educational content about financial literacy, budgeting, and investing.


• Investing (Sometimes): A few apps offer opportunities for kids to learn about and start investing, often with fractional shares.

• Setup: Parents sign up for the service, link their bank account, and create profiles for their children.


• Chores and Allowance: Parents assign chores with specific values and set up a recurring allowance schedule (weekly, bi-weekly, etc.).


• Task Completion: Children complete chores and mark them as "done" in the app.


• Parent Approval: Parents review the completed chores and approve payment.


• Funds Transfer: The agreed-upon payment is transferred from the parent's account to the child's account.


• Spending & Saving: Children can use their debit card to make purchases (within parental limits) or save their money towards goals.


• Tracking & Monitoring: Parents can track their child's spending, savings, and chore completion through the app.

• Financial Literacy: Teaches children about earning, saving, spending, and managing money.


• Responsibility: Encourages responsibility by linking chores to earnings.


• Convenience: Eliminates the need for physical cash and simplifies allowance payments.


• Parental Control: Provides parents with tools to monitor and control their children's spending habits.


• Real-World Experience: Gives kids experience using debit cards and managing a bank account in a safe and controlled environment.


• Transparency: Creates transparency for both parents and children regarding chores, allowance, and spending.


• Savings Habits: Encourages early savings habits and goal setting.

• Cost: Most of these apps charge monthly or annual fees.


• Screen Time: Reliance on devices can increase screen time.


• Privacy Concerns: Data security is a concern when sharing financial information.


• Over-Reliance on Technology: Kids may miss out on learning about physical cash transactions.


• Potential for Conflict: Disagreements about chores or allowance can still arise.


• Not a Replacement for Teaching: These apps are tools to supplement financial education, not replace it. Parents still need to have conversations with their children about money.

Here are some popular options, with a brief overview of their features:

• Greenlight: One of the most popular. Offers debit cards, chore tracking, parental controls, savings goals, and educational resources. Offers an investing platform with parental approval required for trades. Subscription-based.


• GoHenry: Another well-known option with similar features to Greenlight. Focuses on financial education and offers a learning platform called "Money Missions." Subscription-based.


• BusyKid: Emphasizes earning, saving, spending, and investing. Offers debit cards, chore management, and investment features. Subscription-based.


• FamZoo: Highly customizable and allows for virtual accounts for different purposes (spending, saving, giving). Offers debit cards and chore tracking. Subscription-based.


• Step: Combines banking with a rewards program. Offers a secured credit card to help teens build credit. Subscription-based.


• Current: Offers spending cards for teens, chore management, and savings goals. Subscription-based.


• Acorns Early: Aims to teach investing from a young age. Invests spare change for kids through custodial accounts. Subscription-based.

• Age of your children: Some apps are better suited for younger children, while others are designed for teenagers.


• Features: Consider which features are most important to you, such as chore tracking, debit cards, savings goals, or investing.


• Cost: Compare the monthly or annual fees of different apps.


• Parental controls: Make sure the app offers the level of control you need to monitor your child's spending.


• Security: Research the app's security measures to protect your financial information.


• User reviews: Read reviews from other parents to see what they like and dislike about the app.


• Debit Card Fees: Be sure to check for any fees associated with debit card usage, such as ATM fees or foreign transaction fees.

Chore-based banking apps can be valuable tools for teaching kids about money management and responsibility. Carefully consider your needs and choose an app that fits your family's values and financial goals. Remember to supplement the app with open conversations about money.