Achieving a good credit score requires demonstrating financial responsibility. Chase is now seeking to help families instill the basics of sound finances early in life, thanks to their First Banking program. What is Chase First Banking, and how does it compare to other banking options for teenagers, such as Greenlight?
Chase First Banking
Chase First Banking is a joint venture between JPMorgan Chase Bank and Greenlight – a company on a mission to help parents raise financially smart kids. First Banking is a checking account that allows parents to work with their children to impart the importance of money management, including spending, financial monitoring, and savings goals.
How Does Chase First Banking Work?
The First Banking service operates within the existing Chase Mobile banking app. Parents can open an account for their children and then control their financial habits through the app. This process involves assigning chores to show kids how they can earn their money and then set spending limits on using those funds.
Children have access to their account through the Chase Mobile app, allowing them to decide which chores to complete, track their spending, and see when their allowance is paid. Kids also receive their own personal debit card.
Launched in Conjunction with Greenlight
Financial tech company, Greenlight, is an integral partner in the Chase First Banking project. Greenlight is a company “on a mission to shine a light on the world of money for kids and parents.” The service, which costs $4.99 per month, allows parents to set up checking accounts for children of any age and provides an array of tools to help kids master their financial responsibilities.
“Teaching Important Financial Skills”
According to Chase, the program seeks to capitalize on the fact that most kids learn about money when shopping with their families.
“Families are juggling so many more responsibilities today than ever before,” said Allison Beer, Head of Digital for Consumer & Community Banking at JPMorgan Chase. “To help, we’ve made it easy for parents to manage kids’ allowances, keep track of chores, and teach important financial skills from within the Chase Mobile app.”
“Having this account is like having a financial health learner’s permit: kids can learn how to manage money, and parents have the ability to guide their experience safely and in real-time,” adds Kavita Kamdar, Head of Chase First Banking, JPMorgan Chase.
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