Personal finance mobile app targeting teens Wingocard has scored $2m in its seed round, which was led by Diagram.
The app is set for an Autumn launch and there are already 50,000 new users on the waiting list.
It is estimated there are 50 million teens in the US, making up around 15% of the population. On average, teens spend $2,600 each year on food and clothing, according to a survey from Piper Jaffray.
While they are keen spenders, they lack much financial education. A report from the Organization for Economic Co-operation and Development claims that one in five 15-year-olds in the US lack basic financial literacy.
Wingocard hopes to solve this problem. The mobile banking app enables parents to transfer money to their children and monitor how it is being spent. Teens can use the app to improve their understandings of earnings, spending and savings habits.
In addition to the mobile app, teens are provided with a Visa debit card that allows them to buy items anywhere, as well as send and receive money to friends and family.
With the effects of the coronavirus pushing more people to online shopping, Wingocard believes it is as important as ever to teach teens about money safety and a cashless economy.
Wingocard CEO Sebastien Brault said, “The COVID-19 pandemic has created an army of new online shoppers, as Americans move to ecommerce and delivery-based apps to shop for all types of items.
“When we began designing Wingocard, our goal was to give families the tools they need to manage money in the digital age, improve financial literacy for teens and provide a user-friendly mobile money app. As we prepare to launch this summer our growing waiting list highlights how important this tool is to help families navigate new online shopping habits and teach financial literacy.”
Speaking on the importance of child-focused money management platforms, John Ellmore, founder of financial product comparison website Know Your Money said, “This can help children to see that there isn’t a “magic money tree” that will give them more money if they run out, and that they are solely responsible for making sure they have enough money to buy the things they want.”
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