Cash works fine for a 6-year-old’s allowance. But by the time a kid is making real spending decisions — buying snacks at school, splitting a pizza with friends, paying for a movie ticket online — cash starts to feel old-fashioned. Kids’ money apps fill the gap: a prepaid debit card the child carries, paired with a parent-controlled dashboard that handles allowance, chore tracking, spending limits, and real-time visibility. The major players (Greenlight, GoHenry, Step, BusyKid, Chase First Banking) all hit the same basic notes but differ on fees, features, and best fit.
What These Apps Actually Do
The standard feature set across the major apps:
- Prepaid debit card in the child’s name (technically issued under a parent’s account). Works anywhere Visa or Mastercard is accepted, online or in stores
- Parent dashboard shows every transaction in real time, lets you set spending limits, lock the card instantly, or restrict where it can be used
- Allowance automation — set a recurring allowance that hits the kid’s account on the day you choose
- Chore tracking — assign chores with dollar values; kids check them off; parents approve; money lands automatically
- Save / Spend / Give buckets — built-in versions of the three-jar system, with goals and progress visualization
- Round-up investing or kids’ investing (on some apps) — small fractional-share investing in stocks or ETFs with parental approval
- Financial education — varying amounts of in-app lessons, quizzes, or content
These are not bank accounts. The money sits in an FDIC-insured account at a partner bank, but the child doesn’t have a checking account, can’t write checks, and doesn’t get the full features of a real bank. They’re training wheels with strong parental controls.
The Major Apps Compared
The five most-used options as of this writing:
- Greenlight — the most full-featured option. Allowance, chores, save/spend/give, investing (in fractional shares with parent approval), debit card, financial education. Tiered pricing roughly $5–$15/month depending on plan. Most expensive but most polished. Best for families that will use the investing and education features
- GoHenry — very similar feature set to Greenlight. Allowance, chores, debit card, save buckets. Around $5–$10/month. No investing on the base plan. Strong educational content. Best for families that want the core kids’ debit card experience without paying for investing
- Step — free (no monthly fee). Debit card with parent oversight; no chore-tracking dashboard like Greenlight. Pitched at teens 13+ as a transition to real banking, with credit-building features. Best for older teens (15–18) where the chore-tracking is unnecessary
- BusyKid — focused on chores and the save/spend/give/invest framework. Cheaper ($4–$5/month). Less polished interface than Greenlight or GoHenry. Best for families focused on the chore-pay model
- Chase First Banking — free (if the parent has a Chase checking account). Basic feature set — allowance, chores, debit card, parental controls. Less feature-rich than paid options but the price is right. Best for existing Chase customers
Prices and features change frequently — verify current details on each provider’s site before signing up.
What to Look For
- Monthly fee that fits the value — $5–$10/month is reasonable for the features. $15+ should come with investing or multiple kids’ cards
- FDIC-insured deposits — verify the partner bank carries deposit insurance. Reputable apps all do
- Real-time transaction visibility — the whole point. If the parent dashboard lags by hours, lock-the-card features can’t protect you
- Card lock from the app — lost or stolen card should be lockable in one tap
- Custom spending limits — per-day, per-transaction, per-merchant-type limits
- Ability to block merchant categories — gas stations, gambling sites, certain stores. Not all apps offer this
- Cash withdrawal at ATMs — included on most cards. Some have surcharge-free network access; some don’t
- Easy money movement — can the parent send money instantly? Can the kid send money back? Friction here gets old fast
When These Apps Are Worth It
- Ages 8–13 — the sweet spot. Kids need a way to pay for things online and in stores without parents handing over a credit card, and the parental controls match what an 8–13-year-old needs
- Multiple kids in the same family — most apps offer family plans that cover 3–5 kids for one fee. Cheaper than separate accounts
- Allowance + chores in one place — if you’re already tracking chores on paper or a whiteboard, automating it inside the app reduces friction
- Building habits before real banking — the visualization of save/spend/give buckets builds budgeting habits that translate to real accounts later
When to Skip Them
- Kid is under 7 — physical cash teaches more at this age than a debit card
- Kid is 16+ and ready for a real account — at this point, a teen checking account at a real bank (see Teen Banking) is a better step. Step is the exception — it’s designed for this transition
- Family budget can’t absorb $10/month easily — the lessons can absolutely be taught with cash, jars, and a notebook
When to Graduate to a Real Bank Account
By age 14–16, most families benefit from moving the teen to a real teen checking account at a credit union or bank. The signals it’s time:
- Teen has a real job — direct deposit needs a real bank account; most kids’ apps don’t handle this cleanly
- Teen is asking for more independence — tight parental controls feel restrictive once a kid is responsible enough not to need them
- App fees are adding up — teen checking accounts are usually free
- Teen needs to write a check or receive one — prepaid cards can’t do this
The Bottom Line
Kids’ money apps fill a real gap: a way for kids 8–14 to make digital payments with strong parental controls, automated allowance, and built-in budgeting buckets. Greenlight is the most full-featured (and most expensive); GoHenry is similar without investing; BusyKid is cheaper; Chase First Banking is free for Chase customers; Step targets older teens transitioning to real banking. Pick based on the age, the features you’ll actually use, and whether the monthly fee fits. By mid-teens, the training-wheels stage is over — transition to a real teen checking account.
Further Reading
This article is educational only and is not financial, tax, or legal advice. Product features, fees, and rules change over time. Verify current details with each provider before making decisions. Consult a qualified financial advisor for guidance on your specific situation.