Why banks and money-management sites are vying for kids’ cash
Stashing allowance money and birthday cash in a porcelain pig as a kid
is like hiding money under the mattress as an adult, if new
money-management websites for youngsters are to be believed.
Think of them as Mint.com for kindergartners: Kids (and their parents) can virtually monitor chores completed, allowance earned, and how assets like gift cards are spent. The funds can be allocated toward goals such as saving, spending and donating. Sites like ThreeJars and Zefty have been around since the recession, and a half-dozen or so more — including MoneyTrail.net , PlayMoolah , KidsCash and Kashpile — have launched in the past year.
The growth comes at a time when, experts say, kids are more likely to be unbanked. There aren’t as many kid-specific savings accounts from big banks as there were a few years ago, says Greg McBride, senior financial analyst for Bankrate.com. Most financial institutions aren’t interested in attracting underage savers. “The banks don’t have a shortage of cash; they have a shortage of revenue,” says Dennis Moroney, a director of research at Tower Group, a consulting firm. New products have tended to focus on college-age kids, who are more likely to bring in revenue from bank fees and credit card purchases as they move into adulthood, he says...MORE
