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July 2, 2021updated 31 Jan 2022 10:15am

Verizon launches family money app and prepaid debit card for children

By Evie Rusman

US comms network Verizon has launched a new family money app and prepaid debit card designed for children aged eight to 17.

Verizon Family Money aims to help children become financially responsible while allowing their parents to manage from the side-lines.

Through the app, children can access a spending account with a prepaid debit card to make purchases and a savings Vault to save for future goals. However, parents are always in control and can monitor spending, set up allowances, and see purchases.

Parents can also use the app to set chores, assign rewards and manage allowances. In addition, they can set up spending blocks and instantly transfer money from the parent Wallet to kids when needed.

Helping kids manage money

Todd Oberstein, Executive Director Product Management and Development at Verizon, said: “With Family Money, we’re showing what’s possible when tech and financial services come together.

“Family Money provides even more value to our customers based on their unique needs. It’s the perfect way to help kids learn the ins and outs of managing money and yet another way we’re providing real benefits to our customers outside of the reliable connectivity they know and love us for.”

The company partnered with Galileo, the API standard for card issuing and digital banking, to create the fintech platform Family Money is built on. Meanwhile, the Family Money Prepaid Visa Card is issued by Metropolitan Commercial Bank.

Both Verizon and non-Verizon customers can trial the tool for 30 days for free. At the end of the trial period, the service auto-renews for $5.99 per month. The $5.99 fee, which includes up to 5 kids, will be debited from the parent’s Wallet in the app.

This comes as Verizon is still fairly new to financial services – In June 2020, Verizon introduced its first ever credit card allowing its wireless customers to save on their monthly Verizon bill through rewards earned on everyday purchases. The card also enables customers to use those rewards toward Verizon purchases, including bill payment and the latest 5G phones and accessories.

This story was originally published on Cards International, part of the GlobalData network.