By Jamie Johnson, WCI Contributor
You can teach kids about money at any age, but it becomes essential once they reach the teenage years. As they approach adulthood, teens need real-life experience earning, managing, and saving money. If you’re looking for ways to do this, you might consider opening a Venmo Teen Account for your child.
Venmo is a peer-to-peer payment app that lets people transfer money to family and friends. The Venmo Teen Account lets parents create a Venmo account on their teen’s behalf. But it’s important to know how this account works and the pros and cons of setting one up first.
What Is a Venmo Teen Account?
The Venmo Teen account gives teens between the ages of 13-17 a way to send and receive money. The account comes with a free debit card and gives teens access to the Venmo app. However, parents can choose not to give their kids app access. Teens can spend their Venmo balance anywhere that a Mastercard credit card is accepted. If they start working, teens can set up a direct deposit into their Venmo Teen account.
A parent or legal guardian can sign up their teen for the app and monitor the account. Parents can lock or unlock the debit card, and all transactions are automatically set to private unless a parent updates the privacy settings.
There’s no application fee, monthly maintenance fee, or minimum balance requirements with a Venmo Teen account. Teens can withdraw money for free from in-network ATMs, though they will pay a $2.50 fee for out-of-network ATMs.
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How to Set Up a Venmo Teen Account
A parent or legal guardian will start by opening the account on the teen’s behalf. You’ll do this by completing the following steps:
- Click on the “Me” tab in the Venmo app
- Tap the arrow next to your name in the top left corner
- Select “Create a teen account” from the menu
- Click the “Get Started” button
- Verify your personal information
- Pick a color for the Venmo Teen debit card
- Add some information about your teen
- Add money to the Venmo Teen account
Once the account is set up, your teenager is ready to start using their Venmo account.
Pros and Cons of the Venmo Teen Account
The biggest benefit of setting up a Venmo Teen account is that it gives teens real-world experience managing money. Teens can send and receive money from family and friends, make purchases, and monitor their spending through the Venmo app. And the account comes with built-in parental controls and safety features, so they’ll still be receiving parental guidance. The app and debit card are easy to use, and they don’t come with any monthly fees.
However, some teens may be easier to take advantage of due to their lack of experience with money. If you do decide to open a Venmo Teen account, it’s a good idea to talk to your kids about online scams and how to avoid fraudulent transactions.
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Alternatives to a Venmo Teen Account
Opening a Venmo Teen account can be a great way to help your teenagers learn more about money, but it’s not your only option. If you’re on the fence about letting your teen use Venmo, here are some alternatives you can consider:
- Greenlight: Greenlight is a banking and investing app for kids and teenagers that comes with a debit card. Parents can help their kids set up savings goals, and kids can earn 1% cash back on their savings. But the app does come with a $4.99 monthly fee.
- Cash App: The Cash App is also available for kids from the ages of 13-17 with a parent or guardian’s approval. The app also comes with cryptocurrency and stock trading options. However, the Cash App comes with fewer parental monitoring features.
- GoHenry: The GoHenry app by Acorns comes with a debit card, real-time notifications, and peer-to-peer payments. Parents can help their kids set savings goals, and the app has built-in financial education tools. It does come with a $4.99 monthly fee, but there is a free 30-day trial.
The Bottom Line About Venmo Teen Accounts
Using a financial product like the Venmo Teen account can be a great way to help teens learn crucial money management skills. This account helps teens learn how to spend money responsibly while still providing some parental oversight. Plus, setting up a Venmo Teen account gives parents additional opportunities to have meaningful financial conversations with their kids. It can be a great way to open the lines of communication and help teens become comfortable talking about money.
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