- Cash App launched parent-managed accounts for children aged 6-12 this week, offering a 3.25% interest rate on savings.
- Parents maintain full control, approving transfers from selected contacts, but these youth accounts have no Bitcoin functionality.
- Sponsored accounts for teenagers can include Bitcoin access with parental permission, a feature absent for younger users.
- Block’s research shows 89% of Gen Alpha children are actively saving, often for digital goods and personal tech.
- The company, which serves over 5 million teens monthly, expanded its youth offerings following major workforce layoffs and a pivot toward AI.
Cash App, owned by Block Inc., launched a new parent-managed financial account for children ages 6-12 on Tuesday, as the fintech platform expands into youth banking. The accounts offer a 3.25% interest rate on savings, allowing parents to build money management habits early, according to the company’s announcement.
Parents retain complete control, approving money transfers from up to five trusted contacts they select. Consequently, younger children cannot access Bitcoin through these accounts, a Block spokesperson confirmed to Decrypt.
However, when children turn 13, these managed accounts can convert to sponsored teen accounts with parental consent. These sponsored teen accounts do include the option for Bitcoin trading if parents grant permission.
This launch aligns with findings from the company’s own survey data. The Cash App “Raising Gen Alpha” report, based on a Harris Poll, found that 89% of Gen Alpha children are actively saving money.
Digital and gaming purchases lead their savings goals at 34%, followed by personal technology and toys or collectibles at 32% each. Meanwhile, 77% of parents have already begun money management discussions with their kids.
“We built managed accounts to give kids access to real financial tools and experiences while keeping parents fully involved,” said Block Executive Officer and Head of Business Owen Jennings. The platform already serves more than 5 million teens monthly.
The company, led by Bitcoin proponent Jack Dorsey, has expanded far beyond peer-to-peer payments into banking, investments, and Bitcoin trading. Consequently, it has launched other Bitcoin-centric products like a hardware wallet and modular mining rigs.
Block stock rose about 1.4% on Tuesday after the product launch. This expansion follows the company’s February decision to cut over 4,000 jobs, roughly 40% of its workforce, in a pivot toward AI-powered efficiency.
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