NEW YORK (FOX 5 NY) - When it comes to kids and allowances, parents have been doling out cash the same way for ages.
But in a world that's becoming ever more cashless, it's now common to compensate kids for chores and more with a few clicks and a swipe. And yes there's an app—well, actually, several—for that.
"We were really motivated to create a service to help young people learn about money in the modern world and the world they're growing into," said Dean Brauer, the co-founder of GoHenry, one of the first so-called allowance apps to hit the market.
Since 2012, it has amassed more than 700,000 users. It is for kids ages 6 to 18 and comes with a linked, personalized debit card. Through the app, parents can arrange weekly deposits and set tasks for their child to earn money. They can also set limits on where the card can be used and how much can be spent.
The card doesn't allow any debt to accrue, and the app allows kids to set savings goals and even donate to charity.
GoHenry costs about $50 a year. But Brauer called it an investment that goes beyond convenience.
"This allows them to give their children freedom and independence to start learning about money in a way that suits them and gives them some responsibility to start to understand the value of money," Brauer said.
When it comes to financial literacy in classrooms, very few states actually require it to be built into the curriculum so these companies behind the apps say they're a great way for parents and their kids to take the matter—literally—into their own hands.