Can a Minor Have a Cash App Account?

Cash App, a mobile payment service, has become a widely used platform for managing personal finances. A frequent question arises regarding the ability of minors to use this service. It is possible for individuals under the age of 18 to have an account, but only under specific conditions and with direct adult supervision. This arrangement allows younger users to engage with digital money management tools in a controlled environment.

Requirements for Minor Accounts

For a minor to establish a Cash App account, they must be at least 13 years old. Cash App facilitates accounts for individuals aged 13 to 17, provided there is explicit approval from an eligible parent or legal guardian. The parent or guardian must possess their own verified Cash App account to sponsor the minor’s account. This sponsorship involves linking the minor’s account to the parent’s, making the parent the legal owner of the sponsored account.

The verification process for setting up a minor’s account requires specific information from both the minor and the sponsoring adult. This includes details such as their name, date of birth, and potentially a Social Security Number for identity verification. Cash App employs measures to detect and prevent minors from falsifying their age. Funds held in sponsored accounts, including savings, are FDIC-insured up to $250,000 through Cash App’s partner banks.

Features and Restrictions for Minors

Once a minor’s Cash App account is established and sponsored, it offers several functionalities but also comes with distinct limitations. Minors can send, receive, and request money, with typical limits such as up to $1,000 in payments every 30 days. They can also add up to $7,500 monthly to their balance and cash out up to $25,000 per week. The Cash Card, a customizable debit card, allows in-store purchases and ATM withdrawals, with spending monitored by the parent. Direct deposit is also an option, enabling teens to receive allowances or earnings directly into their account.

Certain aspects of Cash App remain restricted for minors due to age and regulatory compliance. Minors cannot directly engage in investing in stocks or Bitcoin without explicit parental permission and oversight, and even then, these balances are not FDIC-insured. Features such as borrowing money, depositing checks directly, or making cross-border payments are unavailable to users under 18. Additionally, the Cash Card for minors has restrictions on use at specific establishments like bars, casinos, or for certain services like car rentals.

Parental Oversight and Responsibilities

The sponsoring parent or legal guardian plays a direct and active role in managing a minor’s Cash App account. They are considered the legal owner of the sponsored account, with the minor acting as an authorized user. This ownership grants parents access to comprehensive oversight tools, including the ability to review all transactions and balance details, even for savings, stock, and Bitcoin. Parents can also receive real-time notifications about their child’s account activity, enabling continuous monitoring of spending habits.

Parents have the authority to control which features the minor can access, such as enabling or disabling the Cash Card or access to stock and Bitcoin features. They can also set spending limits on the Cash Card and within the app to manage expenditures responsibly. The parent is ultimately accountable for all activity on the sponsored account and must ensure compliance with Cash App’s terms of service. This level of control allows parents to guide their children in developing financial literacy while mitigating potential risks.

Setting Up a Minor’s Cash App Account

The process for a parent or guardian to set up a Cash App account for a minor is integrated within the application. The sponsoring adult must first have their own verified Cash App account. From their profile, they can initiate an invitation for their teen to create a sponsored account. The parent navigates to the “Family” section within their Cash App profile to send this invitation.

Once the minor accepts the invitation, they will be prompted to provide their personal details, including their name and date of birth. The parent will then need to approve the request, which formalizes the sponsorship. After approval, the minor can order a personalized Cash App Card directly through the app.