Reprinted from NYMetro Parents
Why is it so easy to spend money through an app—call a car, order food, buy a coffee—but not as easy to save it? Kidfund makes putting money into your child’s savings account as easy as tipping the barista.
Kidfund is an app that allows parents to quickly and easily open a savings account for their kid that links to their child’s profile, then invite friends and family, and tap gifts directly into kids’ accounts as they grow. “Opening a savings account is a great first step,” Laura Bailyn, co-founder and CEO of Kidfund, says. “But unlike an old school savings account, the Kidfund technology offers a savings account powered by the support of family and friends. It’s a great way to receive cash gifts for the big things in life, instead of adding to the endless pile of toys. Plus, it empowers children to spread the wealth to level the playing field for the next generation.”
We may not know what the future holds for our children, but we know it will cost money. By starting to save for your child’s future now, parents can set their children up for success in life. Whether the money pays for college, to start a business, buy a home, or travel the world, having money to fund opportunities throughout life is essential. Plus, research shows that childhood savings actually increases educational attainment because it shifts kids’ mindsets, making them feel that their future is planned for and instilling the habits they’ll need to take care of themselves when they’re grown.
“My aunt and uncle sent me a Kidfund gift for my birthday,” Jonah, Bailyn’s 13-year-old son, says. “It’s cool to see the pictures and remember that day, and their post in the app reminds me that they are there for me. Plus I set the charity slider to 10 percent, so I’m helping other kids save, too.”
The Kidfund team surveyed its community and found that the two reasons why parents aren’t saving are (1) they feel like they do not have enough money, and (2) they feel disconnected from their accounts and often forget to make deposits once accounts are opened. Kidfund is solving these problems.
Kidfund savings accounts are opened through the app with their banking partner USALLIANCE Financial, the federal credit union founded by IBM employees 50 years ago. Kidfund accounts are completely free (no fees whatsoever!), federally insured up to $250,000, and offer a 3% interest rate on the first $500. Kidfund gives your child the first $1 in their account for good luck and encourages parents to set auto-recurring transfers into their child’s account to help it grow. Whether it’s $1 a day, $20 a week, or $200 a month, every little bit makes a difference, and the Kidfund app lets families decide for themselves what they can afford.