Parents maintain complete control over the new accounts, approving transfers from up to five trusted contacts they select, according to the announcement. When children turn 13, the managed accounts can convert to sponsored teen accounts with parental consent. The service is not available in New York.
Sponsored accounts for teens do have the option of handling Bitcoin, if parents allow access to the asset. However, the managed accounts for younger kids do not include that crypto functionality, a Block spokesperson confirmed to Decrypt.
Cash App's timing aligns with shifting savings habits among young people. The company's Raising Gen Alpha report, based on a Harris Poll survey of parents, found that 89% of Gen Alpha children are actively saving money. Digital and gaming purchases lead their savings goals at 34%, followed by personal technology and toys or collectibles at 32% each.
The survey revealed that 77% of parents have already begun money management discussions with their children, while 50% of Cash App-using parents said they already manage money through the platform on their kids' behalf.
"Cash App serves more than 5 million teens on a monthly basis, and we've heard from parents that they want to start building good money habits with their kids even earlier," said Block Executive Officer and Head of Business Owen Jennings, in a statement. "We built managed accounts to give kids access to real financial tools and experiences while keeping parents fully involved.”
Cash App, owned by NYSE-traded Block Inc., has expanded beyond its original peer-to-peer payment services to include banking, investment options, and Bitcoin trading. The platform has positioned itself between traditional banking and digital financial services, serving users seeking alternatives to conventional financial institutions.
