New debit card for teens helps build financial literacy
Wingocard is a free debit card for teens featuring built-in tools to help them develop good earning, spending and saving habits.
Wingocard is a new teen debit card and mobile app with a focus on financial literacy. It has no monthly fees or card-purchase fees and can be used anywhere Visa is accepted. The company announced on July 28th that it has secured $2 million in seed funding, which means it’s on track to launch this fall. There are currently more than 50,000 users on the waitlist.
Features: Get paid for completing chores, instantly transfer money between parent and teen accounts, set savings goals, send money to friends and family, pay for purchases using your mobile wallet, receive gift cards in the app, complete financial quizzes to earn rewards
Fees: No monthly fee, card-purchase fee or per-transaction fee; other fees not disclosed yet
Limitations: Not available until fall 2020 and there may be a subscription-based service for parents who want to access premium features, but pricing and details aren’t available yet
Teens spend around $2,600 a year on food and clothes, according to a Piper Jaffray survey. Instead of having to let your teen borrow your debit card for these purchases, now parents can set them up with their own Visa debit card while still having control over how they spend their money.
“The COVID-19 pandemic has created an army of new online shoppers, as Americans move to ecommerce and delivery-based apps to shop for all types of items,” said Wingocard CEO Sebastien Brault. “When we began designing Wingocard, our goal was to give families the tools they need to manage money in the digital age, improve financial literacy for teens and provide a user-friendly mobile money app. As we prepare to launch, our growing waiting list highlights how important this tool is to help families navigate new online shopping habits and teach financial literacy.”
How does Wingocard compare to other teen debit cards?
Let’s take a look at how Wingocard’s fees and features compare to the best teen debit cards:
Unlike most teen debit cards, Wingocard is free to use. You won’t pay a monthly fee, per-transaction fee or card-purchase fee. Wingocard has yet to release its fee schedule, but as of right now, it looks like the only time you’ll pay a fee is if you want to buy a premium subscription to access special features. This pricing model is almost unheard of as most teen debit cards usually have monthly fees starting at $3 a month or one-time card purchase fees of $4.95.
Wingocard has some standard teen debit card features you’ll love. Parents can set up chores, deactivate ATM withdrawals and control how their teen spends their money. Teens can request money instantly, create goals to track their savings and pay for items using their mobile wallet.
But there are also quite a few stand-out features unique to Wingocard. First, the card puts a clear focus on financial literacy. Teens can take personal finance quizzes in the mobile app to earn extra cash. Plus, they can complete lessons on budgeting, saving, tracking earnings and common financial terms.
“Financial literacy is an important skill that many U.S. students don’t learn in school. Wingocard gives families the tools they need to teach teens good spending and saving habits in a digital environment,” said Francois Lafortune, CEO of Diagram.
Second, the card comes with an ATM network of 87,000 machines, allowing your child to grab cash when they need it. Most teen debit cards don’t have an ATM network at all, which means they’re hit with a fee each time they dip their card into a machine.