Pocket money apps for teens promote deeper penetration of financial literacy

Indian fintech startups behind teen-centric pocket money apps have rightly taken the lead in teaching young Indians the basics of personal finance

According to India’s 2011 census, the country is home to the highest teenage population in the world, surprisingly well over 250 million. Rightly regarded as the digital first generation that grew up amidst the smartphone era; this segment of the population continues to stand out as the most tech-savvy. They have opinions about the choices they make every day within their family when it comes to food, fashion, gadgets and more. Although independent in mindset and choices, this generation ironically has not been exposed to financial literacy in formal education.

A survey conducted by the National Center for Financial Education in India recently revealed that only 27.18% of respondents had financial knowledge, which was the lowest percentage among BRICS countries. Around 80% of transactions made by teenagers in India are in cash, with digital transactions being done mostly on their motherboards/digital wallets. Banks have largely ignored this segment considering it unprofitable. At a time when Indian teenagers are taking the lead in pursuing various career paths, it is rather unfortunate that they have to embark on their adulthood phase with little or no knowledge related to personal finance.

Indian fintech startups behind teen-centric pocket money apps have rightly taken the lead in teaching young Indians the basics of personal finance. They have created digital platforms that empower teens to learn money management skills through the financial products/features available in the app. It is also a win-win situation for parents who help their children to use these applications, as it gives them a better overview of the pocket money spent.

By learning how to spend, save and earn, Indian teenagers make concrete decisions and take a first step towards understanding responsible money management. By offering educational content that directly breaks down financial concepts, they teach teens money management skills. Additionally and more importantly, by catering to some very specific needs and expectations of this segment, they provide real age experiences for teens to apply their financial skills.

According to statistics, on average, a teenager’s attention span is limited to eight seconds. Keeping this in mind, market participants curate content for this audience by breaking down complex concepts related to finance into reduced formats. They not only cover the basics like interest, inflation, taxes, etc., but go beyond that by simplifying multiple banking nuances like credit/debit cards/RTGS/NEFT, etc. money apps make the learning process smarter and more fun for teens.

Indian teenagers who are becoming increasingly digitally savvy over the years are seizing the opportunities that arise to understand and apply financial concepts in their daily lives. The wallets offered to this segment come with a pocket money card (credited with specific allowances granted by their parents on a daily/weekly/monthly basis) giving them access to instant money anywhere, whenever ! Teenagers regularly find ways to consciously use the allowances given by their parents and learn to allocate them to their various personal spending needs. More importantly, tracking spending at a young age has the power to define their outlook on money for the rest of their lives.

Many innovations, including gamification features, are being driven by pocket money app players to make the overall consumer experience more engaging and relevant for parents and teens. Take, for example, features that let parents reward their kids for the money they save OR assign chores to encourage them to build good habits. GenZ consumers who seek instant gratification and convenience in most aspects of their lives latch onto these innovative features – a sweet spot directly impacted by spending money apps. This is a generation that thrives on relationships between peers. Pocket money apps allow teenagers to transfer money between friends in real time for the first time. Instilling the skills of splitting allowances to help peers is an important life skill.

Ultimately, pocket money apps deal with a segment of users who like to be appreciated, recognized and incentivized. Teen-focused retail brands offer discounts and rewards in partnership with spending money apps.

Indian teenagers value clutter-free, easy-to-grasp, transparent and authentic communication and this is where pocket money apps hit the bullseye. They sowed the seeds of imparting financial literacy to a segment of users who need it the most. By creating platforms and apps that serve as springboards for young consumers to take ownership of their finances, fintech players are poised to change the way this generation will think about money matters in their age. adult. Never before had they been formally trained to cultivate good financial habits before embarking on a journey to higher education or the professional sphere, but that is now history. Their today will define who they are tomorrow.

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