CBA rolls out new app that allows Aussie kids to manage their own money

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Commonwealth Bank of Australia
A Commonwealth Bank of Australia logo adorns the wall of a branch located in Sydney, Australia, November 5, 2015. Reuters/David Gray

The Commonwealth Bank has rolled out a new banking app that would allow Aussie kids to manage their finances. The nation’s largest bank stressed that kids’ access to savings online is essential in instilling the importance of money management.

The Youth app has been launched, allowing kids to check their balances on saving as well as transaction accounts. They can even transfer money from one account to another. However, users cannot transfer money to other sources.

Last year, the app was tried by over 2000 children. The bank’s head of school banking and youth Veronica Howarth said that due to its success, the app has been released to all Apple users with CBA accounts.

Parents can also monitor the financial habits of their children. This can be possible using their own online banking login if they are also Commonwealth Bank customers.

“The parents can see their child’s account on their own adult banking app so they have full visibility of the account and transfers that are happening,’’ quotes Howarth as saying. She shared they have learned that kids have varied understanding of financial literacy.

Online banking for kids

According to a new research by Commonwealth Bank, almost 43 percent of Aussie parents said it was difficult to teach their kids about digital money or digital transactions. Forty-two percent of those who have participated in the study believe technology would make it easier to track savings goals online, and 41 percent of parents say that monitoring kids’ spending via a device or computer would be simpler. The app also allows kids to create a list of chores and tick them off as they complete each one of them in return for pocket money.

Ryan Watson, Tribeca Financial chief executive officer, said it has been a challenge for kids to understand where money comes from and its worth. “Teaching kids a good savings mentality will set them up financially for life,” he added.

Commonwealth Bank offers Youthsaver accounts for kids below the age of 14. The bank’s Dollarmites Club assists children in reaching their savings goals. The newly launched app seems to be an extension of the two.

In May, the bank warned account holders not to respond to a scam text message that instructs them to log into Netbank and unlock their account. It said the security of its customers’ baking details is its top priority.

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