EXCLUSIVE: Why Your Kids Probably Need A Monzo Account

As the shift to online banking becomes increasingly prevalent, so too does Monzo’s likeability, with the company achieving a valuation of £2 billion in 2019 as more people sought the convenience of a bank at the touch of their smartphones.

Whilst everybody has been a victim of their own financial mismanagement at least once in their lives, I can definitely say the majority of my errors were made during my teenage years! However, opening a Monzo account from the age of 16 exists as a useful financial choice for the youth of today that undoubtedly solves many of these ill-mannered spending habits. And here’s why:

An easy process – Two aspects of life that the pandemic has definitely made people more aware of is the access to their finances and their ability to make value of their time. With Monzo, both are far more achievable than with the traditional retail banking institutions. As a 22 year old finishing university, I would always find myself having to either meet in person with retail banks, or provide huge masses of evidence of my spending history before I could even be approved for a simple current account. Monzo completely eradicates these barriers to entry, with the online process taking a mere 10 minutes to gain access to these financial services after very basic questions about one’s identity and spending habits. This allows the youth to establish some financial agency from the age of 16, which is Monzo’s legal lowest entry age for opening an account, which is a hugely valuable and maturing responsibility.

An organised account history – The younger you are, the less likely you are to have pressing financial commitments such as rent, mortgage payments or health and life insurances. The result is that your money ends up everywhere! ONS reports from 2018 showed that children aged from 7 to 15 spent their income primarily on clothes and shoes, food and drink, and games as hobbies. With each of these categories having so much variation in themself, it is easy to lose track of where one’s money goes. Monzo solves this problem though, by dissecting one’s financial history through salary, spending, bills and saving pots. All of these help an individual, and particularly a growing teen, appreciate the value of their money and understand their spending habits by the time they can open a Monzo account, encouraging them to be more self aware and perhaps more disciplined as a result.

Managing money between friends and family is made effortless – sending money to your close ones, for whatever reason, is largely an everyday process for most people. Whilst regular retail banks already have a fairly straightforward process for transferring money, Monzo further simplifies the process. Without needing their bank details, you can transfer money to who you need to with just their phone number or email address, reducing the need to give away valuable information such as sort codes and account numbers.

Reducing the fear of fraud – As aforementioned, Monzo’s features allow for greater protection of sensitive financial data. They pride themselves on several instances of this, such as detecting and warning Ticketmaster about a breach of data months before there had been an announced issue. Furthermore, being protected by the Financial Services Compensation Scheme (FSCS) means that funds deposited into Monzo accounts are regulated and insured by the government. With over 1 million children in the U.S being victims of identity theft in 2017, costing families $540 million in out-of-pocket expenses, it appears that fraudulent endeavours can cause serious financial damage, and so Monzo helps reduce this risk of child financial exploitation.

As the world becomes more technologically advanced, so too must the way we bank, and how we teach our children about banking and financial safety. It is with this that makes Monzo a reliable and respectable venture for the youth of today.