Yesterday, global neobank Revolut launched Revolut <18, a new take on their junior account aimed at improving financial literacy and empowering young people.
A recent OECD international study of financial literacy showed that only 57% of adult respondents in member countries obtained the minimum target score of 5 for financial literacy.
Younger adults aged 18-29 were found to score the lowest. Saving habits were particularly bad, with one-third reporting a saved financial cushion of one week, while one quarter said one of a month.
Financial education from a young age is seen to provide a bridge to help improve this behavior. With the <18 account, parents and guardians can set a “payday” for pocket money, while children can set their own saving goals. They can track spending using their own <18 app, and reminders are set to help them keep to these goals.
In addition, the company has introduced a brand new peer-to-peer payment facility. Users can send and receive money between other friends that use Revolut <18.
“We listened to feedback from our customers who said they wanted our under 18s product to be customizable and to look and feel more personal to them. Therefore we wanted to create a more grown-up feel to the card and app as it is an account that can grow with you,” said Tara Massoudi, Revolut General Manager of Premium Products.
“We’re delighted to introduce Revolut <18 to new and existing customers. The new <18 card’s yellow design is energized, positive and fresh, appealing to a variety of under 18s.”
The account was launched in the US, Europe, and Australia yesterday. The 10,000 U.S. customers of Revolut Junior have already been transferred to the new <18 accounts. Future rollout to other countries is expected very soon to cater to all 1.6 million users of the Junior account.