Investing Via Cash App: A Guide For Under-18S

Cash App is a financial services application available in the US that offers peer-to-peer money transfer, bitcoin and stock exchange, a personalised debit card, savings account, short-term lending, and other services. Anyone 13 years or older can sign up for a Cash App account. However, you will have less access to features if you are under 18 years old. Cash App requires users to be 18 or older to invest. To access all features, teens will need a verified parent or trusted adult to sponsor them. In this article, we will discuss how teens can invest using Cash App and the steps they need to take to get started.

How to get a sponsored Cash App account

Cash App allows anyone aged 13 or above to create an account. However, to access certain features, those between the ages of 13 and 17 must have a sponsored account. A sponsored account allows users in this age bracket to use Cash App with approval from a parent or guardian.

To get a sponsored account, you must first sign up for Cash App. Then, follow these steps:

• Tap the Profile Icon on your Cash App home screen.
• Select Family and tap I'm a teen.
• Follow the prompts to enter your name and birthday.
• Tap Select Sponsor and look up a parent or guardian.
• Tap Send in the top right.

Once you have sent the request, your parent or guardian will need to approve it. They can do this by following these steps:

• Tap the Activity icon on the Cash App home screen.
• On Request for Approval, tap View.
• Review the terms and conditions and tap Approve.

After your account has been sponsored, your parent or guardian will be the legal owner of the account, and you will be considered an authorized user. They can track your activity in the app and turn specific features on or off. They can also end sponsorship at any time by contacting Cash App Support.

Cash App features for teens

Cash App is a financial services application available in the US. It offers peer-to-peer money transfer, bitcoin and stock exchange, a bitcoin on-chain and lightning wallet, a personalised debit card, a savings account, short-term lending, and other services.

Anyone 13 years or older can sign up for a Cash App account. However, you will have less access to features if you cannot verify your identity by social security number or if you are under 18 years old. Luckily, Cash App customers between 13 and 17 can get access to expanded features in the US if they have a sponsored account, which is supervised by a parent or guardian.

Teens with sponsored Cash App accounts can do the following:

• Receive recurring allowance payments
• Send, receive, and request $1,000 per 30 days
• Add a maximum of $7,500 to their balances
• Cash out a maximum of $25,000 once a week
• Use a Cash Card to spend at stores
• Withdraw cash from ATMs with the Cash Card
• Deposit paper cash ($250 per 7 days, $1,000 per 30 days)
• Buy Bitcoin (up to $400 per 30 days)
• Buy stocks (up to $400 per 30 days)

With a sponsored account, the teen will be able to send and receive money, use a Cash Card, use Boosts, get direct deposits, and even access bitcoin and stocks. Sponsors will be able to track their child's activity, turn off certain features, and cancel sponsorship at any time.

Risks of using Cash App

Cash App has risen in popularity, especially among young people, due to its ease of use and features like the ability to trade stocks and cryptocurrency. However, it is important to be aware of the risks associated with using Cash App or any other peer-to-peer (P2P) payment platforms. Here are some of the potential risks and dangers to watch out for:

Scams and Fraud

The ease and convenience of Cash App have made it attractive to fraudsters and cybercriminals. Scams and fraud are prevalent on Cash App, and users need to be vigilant to protect themselves. Common scams on Cash App include phishing attempts, merchant fraud, customer service scams, fake sweepstakes, money flipping, and stimulus check fraud. It is essential to be cautious when providing personal or financial information and to only send money to people you know and trust.

Irreversible Transactions

Cash App transfers are not reversible, and users need to be aware that once a payment is made, it cannot be undone. This can be problematic if a user accidentally sends money to the wrong recipient or falls victim to a scam. While there is a "request" function to ask for a refund, the recipient is not obligated to comply. Therefore, it is crucial to double-check recipient information before sending any payments.

Lack of Identity Verification

One of the vulnerabilities of Cash App is that it does not require proof of identity to use the platform. This lack of identity verification makes it easier for scammers and fraudsters to operate on the platform. It also increases the risk for users, as there is no way to confirm the identity of the person they are transacting with.

Limited Customer Support

Cash App does not offer phone support, and users who encounter issues or have queries may find it challenging to get timely assistance. While the app provides in-app customer support, the lack of phone support can be a disadvantage, especially for urgent matters or complex issues.

Data Privacy Concerns

While Cash App claims to use encryption and fraud detection technology to protect user data, there are still concerns about data privacy. Users should be cautious about the information they share on the platform and review the app's privacy settings to ensure their data is protected. It is also important to be wary of malicious emails or links that may compromise personal information.

Security Risks

As with any digital payment platform, there are inherent security risks associated with using Cash App. Users need to take precautions such as securing their devices, enabling two-factor authentication, and regularly updating passwords to protect their accounts and financial information. Additionally, it is recommended to avoid using public Wi-Fi for transactions, as it may be susceptible to hackers.

Cash App alternatives for teens

While Cash App is a great option for teens to get started with money management, there are several other alternatives with unique features that can be explored by parents and teens.

• Apple Cash Family: This is a good option for parents who want to monitor their teens' spending closely. It is available for iOS users and can be set up through the Family Sharing plan. Parents can limit who their child sends money to, get notified of transactions, and lock the account if needed. The Apple Cash card can be used anywhere that accepts Apple Pay, and children can also use the funds to send money to others through Messages.
• Venmo Teen Account: Venmo, a PayPal-owned payments platform, introduced the Venmo Teen Account in May 2023. This account is available for teens between 13 and 17 years old and offers a teen Mastercard debit card. Parents can monitor transactions, see their teen's contacts, block users, and lock the card. The account is set to private by default, and there are no monthly fees or cash withdrawal fees at certain ATMs.
• Greenlight App and Debit Card: This app and debit card have no minimum age requirement and are ideal for children and teens. Parents load money onto the card from their own Greenlight app, and it can be used almost anywhere that accepts Mastercard. Direct deposits for teens with jobs must be in the child's name and cannot be from government sources. Greenlight also has several "guardrails" to block certain types of transactions, such as wire transfers, security brokers, dating services, and online gambling.
• GoHenry App and Debit Card: This app and debit card are designed for kids aged 6 to 18 and offer features for both teens and parents. It includes chore and allowance tracking, real-time alerts, and spending controls for parents. GoHenry also provides customer support seven days a week and offers built-in financial education tools for teens, including interactive financial lessons.
• Google Pay: Google Pay is available for teens from 13 years old. While it only works on Google Play, parents can add a payment method and limit spending to specific apps or types of purchases. Parents can also require preauthorisation for every purchase.
• RoosterMoney: This prepaid card has a broad set of parental controls and allows parents to automatically split pocket money between spending and saving. It also has a built-in chore tracker, so parents can set it to only pay out when chores are completed.

While these alternatives offer similar features to Cash App, it is important to carefully review and compare the options before choosing the most suitable one for your needs.

Cash App safety essentials for parents and teens

Understanding Cash App

Cash App is a financial services application available in the US. It offers peer-to-peer money transfer, bitcoin and stock exchange, a personalised debit card, a savings account, and short-term lending, among other services.

Age Requirements

Anyone 13 years or older can create a Cash App account. However, only those 18 and older can invest through the app. To access expanded features, teens between 13 and 17 need a sponsored account supervised by a parent or guardian.

Sponsorship

A sponsored account is an account legally owned by a parent or trusted adult. The sponsor must first own a verified Cash App account. They can then invite a child between 13 and 17 to become an authorized user. Teens can download the app first and send a sponsorship request to their parent.

Features of a Sponsored Account

With a sponsored account, teens can send and receive money, use a Cash Card, access boosts, get direct deposits, and buy bitcoin and stocks. Sponsors can track their child's activity, set spending limits, turn off certain features, and cancel sponsorship at any time.

Safety Tips for Parents and Teens

• Explain the risk of no refunds: Help teens understand that sending money through Cash App is like sending cash. It cannot be easily disputed or refunded.
• Double-check transactions: Always verify recipient details to avoid sending money to the wrong person.
• Only connect with known contacts: Exchange money only with people you know. Do not send money to strangers or respond to requests from unknown sources.
• Stay informed about scams: Use resources like BBB Scam Tracker to learn about common scams targeting Cash App users.
• Protect personal data: Never share passwords or personal information. Do not respond to suspicious links or messages that appear to be from Cash App and ask for your password. Report these to the relevant authorities, such as the Bureau of Consumer Protection.
• Use a VPN: Subscribe to data protection software like a VPN to protect your devices and Cash App from hackers.
• Enable app security: Use strong passwords, PIN codes, facial ID, multi-factor identification, and fingerprint ID for added protection.
• Keep low app balances: Maintain minimal balances in the Cash App account. In the event of scams or fraud, losing a small amount is preferable to losing a large sum.
• Teach financial literacy: Use Cash App as an opportunity to educate teens about financial literacy, including interest rates on savings and compound interest on investments.
• Understand the risks: Be aware that investing and purchasing bitcoin involves risk, and you may lose money.

Frequently asked questions