Does your 12-year-old have a wad of cash burning a hole in her pocket? If so, you might just consider a new bank account designed for kids that JPMorgan Chase (JPM 1.55%) has launched. The big lender has rolled out Chase First Banking, which is aimed squarely at little ones as young as six.
Chase First Banking is, in many respects, a traditional checking account. The key difference is that the account holder's parent or guardian can set limits on spending. They can do so on a category-by-category basis if they wish, or set an all-encompassing limit.
The account, which is managed via the company's mobile app, is split into a trio of components: spend, save, and earn. The spend section is where spending limits are set. In save, account holders can set savings goals and track the child's progress toward them. Finally, the earn section lets adults autopay allowance, setting the amount and payment dates. It even has a chore completion feature.
As with any decent checking account, Chase First Banking comes with a debit card. Parents can (and should) put spending limits on this instrument. It can also be locked by the adults in case of any serious problems.
In its press release trumpeting the new product, JPMorgan Chase emphasized that the account carries no monthly fees.
"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," said head of Chase First Banking Kavita Kamdar.