By Indira Kasaeva
Verity – the region’s banking app for kids and teens aims to educate youth on managing finances, and transform the concept of 'giving allowance' for parents
Around 2/3 of adults are financially illiterate globally according to The Standard & Poor's Ratings Services Global Financial Literacy Survey, the world’s largest, most comprehensive global measurement of financial literacy. When was the last time you gave your kids some money, and how did you do it? Maybe it was cash, maybe it was your credit card – but how do you educate your kids when it comes to handling their money. Well, there’s an entirely new way to do it with a new tech solution called Verity.
With the world going through full-on digitization mode, the way we handle money has very much changed as well. Many of us barely even carry our credit cards, let alone our wallets. With reluctancy to touch any extra surfaces and the conveniences of our smartphones, it was a smooth transition. But how has this effected financial transitions with kids?
Co-Founder of Verity, Dina Shoman, who left the world of banking to pursue her passion of financial education for children explains; there are three ways parents give money to their kids: cash, their own credit cards, or via a child’s account through a bank, however each option has a downside. There is no insight on what cash was spend, credit cards have no spending controls. With this there isn’t much financial education on spending or saving. The new tech solution offers children the digital financial tools that aren’t currently available to them and educates them on core financial concepts in a fun and experiential way.
According to the brand’s research, the average monthly allowance is roughly AED 500 in the UAE, but can range from AED 250 to AED 1,200. The ultimate goal is to choose a reasonable value that allows children to spend on things they like but also to encourages them to save up. Teaching kids financial literacy from an early stage sets them up for a more conscious and responsible life when it comes to money.
Set to launch by the end of 2021, Verity caters to kids starting from eight to 18, with even younger children being able to use the app with some guidance from an adult. It offers features such as digital allowance with instant money transfers, saving and giving goals - to teach children on managing their finances and chores – parents can incentivize children to earn money by completing tasks like home chores, reading, exercising, and others. It also includes prepaid card options where parents can set transaction limits, get instant notifications, as well as activate or deactivate the card from within the app. The parents have an interactive dashboard that allows them to see their child’s spending and saving too.
The logistics are simple. Parents need to download the app and create a Verity account. They will need to verify their ID, to ensure highest security with approvals completed according to the local banking regulations. Following the creation of the account, you choose a subscription plan and add in the kids’ details. The app needs to be downloaded to children’s phones and linked to the parent’s app through a QR code. Parents can then upload any amounts to the Verity app via an instant bank transfer, and transfer money to kids respective Verity accounts. The rest of the services are customizable based on goals. If parents wish to give kids a physical prepaid card, it can be set up through the app with the card delivered in three business days.
The Verity founders aim to create a positive shift on the way families handle money. According to Dina, this novel way of granting allowance create more intentional and well thought out spending decisions, kids have a modern way of comprehending money value and are incentivized to earn more and save more. It also gives them ownership of their spending while allowing parents control and insights on purchases made. As they grow, they learn how to plan and budget for their lives which is a valuable skillset to have. For parents, Verity substantially simplifies life with convenience of digital and automated allowance. Visits to the ATM and potential of lost cash is replaced with instant transfers, and peace of mind being able to track on what allowance is being spend.
While cash will never truly disappear, online banking continues to expand and children are growing into this digital world. It only makes sense to teach them about the value of money, through simple and innovative solutions relevant to their way of life.
For more information on Verity visit www.veritytheapp.com or follow them on social @verityapp on Instagram or @verityTheApp on Facebook.