Teen Pocket Money Apps Driving Deeper Penetration Of Financial Literacy
India’s fintech startups behind teen-centric pocket money apps have rightfully taken the lead in teaching India’s youth the basics of personal finance
As per India’s 2011 Census, the country is home to the highest teenage population in the world, strikingly well over 250 million. Rightfully considered as the digital-first generation that has grown up amidst the smartphone era; this segment of the population continues to stand out as being the most tech-savvy. They are opinionated when it comes to the choices that they make on a day to day basis within their families across food, fashion, gadgets and many more. Despite being independent in their mindset and choices, this generation ironically has not been given exposure to financial literacy in formal education.
A survey conducted by the National Centre for Financial Education in India recently revealed that only 27.18 per cent of the respondents were financially literate which was the lowest percentage among the BRICS countries. Around 80 per cent of transactions conducted by the teens in India are in cash with the digital transactions done mostly on their parent cards / digital wallets. Banks have largely ignored this segment considering it unprofitable. At a time when India’s teens are taking the lead in pursuing diverse career streams, it is rather unfortunate that they have to embark upon their adulthood phase having minimal or absolutely no knowledge related to personal finance.
India’s fintech startups behind teen-centric pocket money apps have rightfully taken the lead in teaching India’s youth the basics of personal finance. They have created digital platforms which are enabling teens to learn money management skills through the financial products/features available in the app. It’s a win-win situation for the parents as well who support their children using these apps, as it gives them better insights into the pocket money spent.
By learning how to spend, save and earn, India’s teens are making real-world decisions taking their first step towards understanding how to manage money responsibly. By offering educational content that directly breaks down financial concepts, they are teaching the teens money management skills. Additionally and more importantly, by addressing some very specific needs and expectations of this segment, they are giving the teens real-age experiences to apply their financial skills.
As per statistics, on average, a teenager’s attention span is restricted to eight seconds. Keeping this in mind, market players are curating content for this audience by breaking down complex concepts related to finance in formats which are bite sized. They are covering not just the basics like interest, inflation, taxes etc. but going beyond by simplifying multiple banking nuances like credit / debit cards / RTGS / NEFT etc.. By presenting focused curated content in engaging formats like short blogs and videos, pocket money apps are making the learning process smarter and more fun for the teens.
Indian teens who are getting more digital savvy with every passing year are embracing the opportunities which have come their way towards understanding and applying financial concepts in their day to day lives. Wallets offered to this segment come along with a pocket money card (credited with specified allowances given by their parents on a daily/weekly/monthly basis) giving them access to instant money anywhere, anytime! Teens are steadily figuring out ways of consciously utilising the allowances given by their parents and learning how to allocate them for their varied personal spending needs. Most importantly, tracking the expenses at a young age has the power to define their outlook on money for the rest of their lives.
A lot of innovations including gamification features are being spearheaded by pocket money app players towards making the overall consumer experience more engaging and relevant for both parents and teens. Take, for example, features which allow parents to reward their children for the money being saved by them OR assign chores thus incentivising them for good habits. GenZ consumers who look for instant gratification and convenience in most aspects of their lives are latching onto such innovative features - a sweet spot directly hit on by pocket money apps. This is a generation that thrives on peer to peer relationships. Pocket money apps for the first time are now enabling teenagers to transfer money among friends, in real-time. Instilling the skills of splitting allowances to help peers is an important life skill.
At the end of the day, pocket money apps are dealing with a user segment which loves to be appreciated, acknowledged and incentivised. The retail brands focused on teens are offering discounts and rewards in partnership with pocket money apps.
India’s teens appreciate clutter-free, easy to grasp, transparent and authentic communication and this is where pocket money apps have hit the bullseye. They have sown the seeds of imparting financial literacy to a user segment which needs it the most. By building platforms and apps which are acting as stepping stones for young consumers to take ownership of their finances, the fintech players are poised to change the way this generation will look at money matters as adults. Never before were they formally trained to cultivate good money habits prior to embarking upon a journey towards higher education or professional arena but that’s all history now. Their today will define who they are tomorrow.
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house
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