Jovan Pavlicevic and Jamie German founded SquareOne to teach kids financial skills.
New Zealand app aimed at younger generations of cashless parents to teach kids about money.
The two SquareOne co-founders had careers in financial services and were inspired to create the app when their own children came of age and discussed pocket money and bank accounts.
Jovan Pavlievi said: “The only thing our kids have seen so far is mom and dad just tap a card and get what they want 24/7.”
Without hard cash, like piggybacking coins, it was difficult to teach money classes, so Pavlievi and Jamie German thought of an app to encourage good financial habits with debit cards.
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“There has been some kind of physical medium of exchange for millennia, and suddenly in a generation it’s gone. How do we teach our children the value of a dollar and where does a dollar come from and how much effort does one put into earning it? have to do?”
Once the app is downloaded and parents have set the level of control they want, the kids will be given a bank account number for the MasterCard debit card.
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Since its launch in November, SquareOne has signed 45,000 customers, surpassing its goal of 30,000 for the first year in seven months. The couple expects the number of subscribers to reach 100,000 for the year.
To minimize the risk of fraud, the card does not contain any details other than the child’s maiden name and the MasterCard and SquareOne logos.
It wasn’t a credit card so couldn’t get into debt and couldn’t be used in liquor stores like R18 stores. Parents received push notifications for each transaction and could set parameters, e.g. B. how much could be spent and whether online spending was allowed.
Along with incentives to save, there were some lessons about financial well-being, such as: B. Goal setting, negotiation and delayed gratification.
SquareOne was not a bank but a licensed financial services and dispute resolution service registered as part of Financial Services Complaints Limited.
Pavlicevic said the long-term goal is to grow with its customers and eventually offer financial services products for the whole family.
It has taken a lot of work to get into financial literacy, but SquareOne has established itself as a way to develop financial skills, build good financial habits, not just knowledge.
“You can actually make $1, put that dollar to work in the real world, and connect the dots right. How hard is it for me to empty the dishwasher? And then you have this toy in storage. 10 dishwashers worth?”
The company is currently focusing on New Zealand and expanding its capacity and then expanding overseas, he said.
“And with the Mastercard partnership, this is a very important part for us. And we can use that in many countries around the world.”