Block’s Cash App has rolled out managed accounts specifically designed for children aged 6-12, offering an interest rate of 3.25% on savings. This move is part of the fintech platform’s expansion into youth banking services. Unlike older users, these new accounts do not provide access to Bitcoin.
Parents retain full control over these accounts and can approve transactions from a maximum of five trusted contacts they designate, as stated in the announcement. Once children reach 13 years old, their managed accounts have the option to convert into sponsored teen accounts with parental approval. However, this service is unavailable in New York.
For teens, sponsored accounts do allow Bitcoin management if parents grant access, but younger children’s managed accounts lack this crypto feature, confirmed by a Block spokesperson to Decrypt.
Cash App’s launch coincides with evolving savings practices among young people. According to the company’s Raising Gen Alpha report, which is based on a Harris Poll survey of parents, 89% of Gen Alpha kids are actively saving money. Their primary saving goals include digital and gaming purchases at 34%, followed by personal technology and toys or collectibles, each at 32%.
The survey also found that 77% of parents have initiated money management discussions with their children, while 50% of Cash App-using parents manage funds for their kids through the platform.
“Cash App serves over 5 million teens monthly, and we’ve received feedback from parents who want to instill good financial habits in their children from a young age,” said Owen Jennings, Block Executive Officer and Head of Business. “We developed managed accounts to provide children with real financial tools and experiences while keeping parents involved.”
Owned by Block Inc., listed on the NYSE, Cash App has diversified its offerings beyond peer-to-peer payments to include banking services, investment options, and Bitcoin trading. The platform aims to bridge traditional banking and digital financial services for users seeking alternatives to conventional banks.
In addition to facilitating Bitcoin transactions for eligible customers through Cash App, Block—founded by and led by outspoken Bitcoin maximalist Jack Dorsey—has introduced other Bitcoin-related products, including a hardware wallet and modular mining rigs.
After Tuesday’s opening bell, Block’s stock price increased by approximately 1.4%, reaching just under $75 per share. Earlier in February, the company announced significant layoffs, reducing its workforce by over 4,000 positions—about 40% of its employees—to enhance AI-powered efficiency.