So, this is it; the first post from me and the first post for Otly. And what do you do when you have to meet someone (you, the reader) for the first time, of course, you use a quirky pickup line and you introduce yourself.
Here we go:
Hi, We’re Otly and we think what we are doing is pretty cool. We are creating the first bank for kids and we have started doing this by building a pocket money management app for parents and kids. With this app you can set up monthly/weekly automatic payments into the account of each of your children. As of right now we are still working with a digital currency which means that it is a money management tool and not yet linked to any bank or real money. Although this is the case, we want to expand our capabilities and eventually enable the use of real money. In this way we want to give children a real banking experience where the parent decides the degree of independence.
Sounds good? We think so
The reason why Lior and Vedran started Otly was because managing your child’s pocketmoney is, simply put, a nuisance. The first and biggest problem with this is that you just plainly forget that Sunday is pocket money day. Not only that, when your kids are younger, they don’t remember either and only when they need it they will ask for it. Although this is a way to save money, kids often remember that they didn’t get their allowance for a number of weeks, and you do too. In the end you end up paying more because you feel bad about it or because you thought you forgot 4 weeks while it was actually 3 weeks.
Another issue we want to work on solving is that our society is becoming increasingly digital. Even though in today’s society we can still buy things with cash, between now and the time our children go to college, our world will become more and more cashless and digital. With the app we try give parents the tools to teach their children about digital money and that, just as with coins and bills, you can only spend it once. Already children have to buy their points for Fifa and Pokemon Go in a digital app store which is linked to the parent’s credit card. This means children don’t see money disappear, it’s almost like magic, it’s free money.
Besides this, giving kids the freedom and responsibility to handle, manage and spend their own money will give them the skills necessary to succeed later in life. Getting familiar with concepts like saving, spending and debt on a young age and interest, investing and the time value of money on a later age will only improve their chances on a financially stable future. It is not without reason that UNICEF and the OECD spend a lot of time and energy on promoting financial education.