The child-friendly offering by Starling Bank has similar benefits to a child bank account, but with greater visibility and control for the adult.
Starling Kite will be linked to the adult’s personal or joint account.
Young people aged 6 to 16 will get their own debit card to help them track their spending.
10 September, London: Leading digital bank Starling, is launching Starling Kite to provide young people across the UK with a safe and contact free way to spend as they prepare to return to school.
Starling Kite is linked to the adult’s personal Starling account. A debit card for children can be ordered by an adult from the app. The card will have children’s names printed on it, giving them a sense of ownership and responsibility. They will be able to use it to spend online, in-store and to withdraw cash from ATMs (max £100). If the Kite debit card is lost or stolen, it can be locked from the adult’s Starling account.
The new card can also help young people learn how to budget, whilst also fostering an open and encouraging relationship with money in families. It provides adults with an easy tool for managing pocket money without the need to set up a full bank account for their child.
Starling Kite gives adults complete oversight. Within their Starling app they can allocate funds up to £5k to the card and monitor their child’s spending. Adults, whether using a personal or joint account, receive notifications whenever their child spends money. They can also check, control and limit specific functions such as online payments and ATM withdrawals and set a daily transaction limit which can be controlled and adjusted as the child’s financial needs and awareness grows.
Starling Kite will be available for £2 per card per month.
Anne Boden, CEO and Founder of Starling Bank, said: “Understanding the value of money and learning skills such as budgeting and saving from a young age, can help people lay the foundations for them to achieve better financial wellbeing later on in life.
“We want Starling Kite to encourage families to talk about money together and not see it as a taboo subject.”
Studies suggest that there remain significant gaps in how and when children and young people learn about money.In research from the London Institute of Banking and Finance (LIBF) last year found that 82% of students wanted more money-focused lessons at school. Starling Kite can help to plug this gap.