Google announced on Thursday that Google Wallet will now allow parents to set up a secure balance for children under 18. The tech giant says the new feature is designed to help parents teach healthy financial habits while maintaining oversight of their child’s spending through built-in safeguards.
Parents can set daily spending limits, review their child’s transaction history, and choose to receive notifications whenever a purchase is made. Parents can also lock or unlock the account if the child’s device is lost, or activate a temporary “spending timeout” to pause spending at any time.
The new feature brings Google Wallet more in line with competing financial tools, including Apple Cash Family, which lets parents send money to their children while monitoring transactions and managing spending controls.
Additionally, the company is positioning itself against startups like FamZoo and Greenlight, which allow parents to teach their children financial literacy through prepaid debit card systems.
Kids can use their Android device or Wear OS devices to tap and pay wherever Google Pay is accepted. The tech giant sees the new feature as a way for kids to manage their own money without the need for an actual bank account.
The update is rolling out in the United States. It’s unknown when, or if, Google plans to bring the new capability to additional regions.
The new feature builds on Google’s announcement last year that parents and guardians in select countries can allow their children to use digital payments on Android devices under parental supervision. A payment card can only be added with parental consent, and parents receive an email whenever their child makes a transaction.
With last year’s update, kids also gained the ability to use Google Wallet to access supported passes, like event tickets, library cards, and gift cards.
Source: TechCrunch
