Here’s a news flash for parents and kids: the days of carrying around heavy bags full of cash are over. This growing paperless reality fast-forwards the parenting task of educating kids on financial responsibility. As of 2021, most cash apps like Square’s cash app allow kids aged 13 and up to open accounts. Kids can also get a cash app debit card for retail purchases. But while cash apps are a popular and convenient tool, they come with some risks families should consider.
Instant Transaction from Cash
Cash Apps have become a popular tool with kids and an easy way to split costs or pay for something they’ve bought from a wish list. The secondary account lets you exchange money in real-time, so no need to go through any hassle of carrying around cash! Cash apps are a great way to send money instantly for everyday expenses like school fees for meals, entertainment etc. Some common cash apps include Paytm, Google Pay, etc
The ease of a money transfer app is convenient, but it also comes with risks. Most funds are not insured by the Federal Deposit Insurance Corporation (FDIC) so if your child sends unwanted cash to an unintended recipient they might have trouble getting it back! The leading cash apps are considered secure and can be used with little concern, but there’s always the potential for a cybercriminal to find your banking information or identity.
10 tips to keep your kids and family safe with Cash App
- Talk to your Kids: If you want your kids to be safe when using cash apps, take some time to discuss current scams and how to practice extra care. Clicks within a cash transfer app equal real cash. Help your kids understand digital money is equal to actual money.
- Use Safety measures:- Just like computers, mobile devices can be infected with viruses and malware. One of the best ways to protect your devices (and cash apps) is by subscribing to an antivirus product that includes safe browsing, scanning with malware detection tools and locating lost or stolen phones.
- Layer up your cash app security:- In addition to anti-virus, guide your kids into following password security protocols and add protection by setting a PIN code, facial ID or fingerprint when you set up their cash apps account- just like adults do! Make sure they lock it down properly so no one gets access but YOU. These steps offer more protection in case your child’s phone is stolen or lost, and a stranger attempts to use the cash app.
- Slow down and verify everything:- Kids are quick on the keypad, but advise your child to slow down when sending money to a friend with a cash app it’s important that they verify spelling and address. Most providers won’t help you recover misdirected funds – one typo can cost big bucks!
- Exchange money only with known people:- When using cash apps, advise kids to only exchange money with people they know. Scammers have been known to befriend minors only to ask for a loan or offer goods or services. Once the payment is sent, the scammer instantly deletes their accounts and is gone without a trace.
- Stay updated on cash app scams:- Read blogs related to different types of cash app scams to see how bad actors are targeting cash app users. This might be a very effective way to converse with your kids about the natural consequences of online scams.
- Protect personal data:- The best way to protect your kids is by making sure they don’t have access or knowledge of any harmful materials. This includes avoiding pop-up ads, trendy quizzes and random website URLs on otherwise reputable sites that might plant malware onto a device in order to steal bits or pieces of personal info which could be used for various attacks including financial/identity theft!
- Link your Credit Card with the Cash app:- If possible, consider linking your child’s cash app to a credit card rather than a bank account. Debit cards remove cash from an account instantly, but credit cards offer consumer protection in cases of fraudulent transactions. The one drawback is that a credit card company will charge interest on your balance.
- Keep Cash App Balance less:- If The cash app account balance of your child is low then it isn’t tempting for hackers and thieves to steal funds.
- Teach your child financial literacy basics:- It’s important to teach your children about money before they start to use Cash apps.
Cash apps are here to stay and an integral part of this digital revolution we are living in. As we continue to use them, it’s important for us to keep ourselves and our families safe. That includes educating children on the dangers of using these types of applications.