New kid on the block: How pocket money app Spriggy compares to traditional kid’s bank accounts

Kids and money don’t usually go together, unless they’re asking for more to spend! That’s why teaching your children good money skills early can set them off on the right foot. 

There have been a few kid-friendly bank and savings accounts over the years but some don’t really help with the lesson of managing money better. A few years ago Spriggy arrived on the scene and things began to look up for parents.  

But before jumping on the app and moving money out of the kids’ first account, we should look at how Spriggy stacks up to traditional bank accounts.  

So what is Spriggy?

Spriggy is a prepaid card and mobile app that’s aimed at families and kids. Since launching in November 2016, it has amassed a user base of over 850,000 people and has given children and parents the opportunity for some hands-on experience with financial decisions like saving, spending and even budgeting.

The Spriggy prepaid card allows children to use their own money for their own purchases. But don’t worry, as a parent you’re still across their spending! With Spriggy, parents have full view and control of the app and can choose just how much pocket money their kids can spend. 

So whether transferring money to the card for spending or into customisable ‘savings accounts’ on the app, the goal is to help show your kids better money management.

How does the Spriggy card work?

Once parents have signed up online for an account and activated the Spriggy card, they will be able to load funds into the Spriggy digital wallet. This simply means linking their debit card or bank account and transferring money across. Children will then be able to use the card at any stores (in person or online) that accept Visa.

How does the app work?

The Spriggy app is compatible with both Apple and Android. It’s a digital wallet with different accounts accessible to parents and children (well parents have access to everything), and here’s a basic run through of how to use the different accounts:

First up you’ll need to transfer money onto Spriggy through a linked debit card or bank account. Say you want to transfer across $50, this will end up in the ‘Parent Wallet’ account on the app which your child can't see.

Okay, so there’s now $50 sitting in the ‘Parent Wallet’. What next? To make those funds available to your child you’ll need to transfer that $50 (or a smaller amount) into the ‘Pocket Money’ account. So effectively you're giving them their pocket money!

Now that the $50 is sitting in the ‘Pocket Money’ account, your child will be faced with two choices: either they can transfer it to the ‘Spriggy Card’ account where’ll they be able to spend it (using the card), or to the ‘Savings Goals’ account where (unsurprisingly) they’ll be able to save it. Your child will be able to set up multiple goals in the ‘Savings Goals’ account so they can save for different things at once!

Does Spriggy cost money?

Yes. Spriggy charges $60 a year for an account of up to 4 kids (with an additional $10 for every additional child) and the card itself expires after a year. While the Spriggy card can be used by your kids overseas on your next vacation, any foreign currency transactions will be hit with a 3.5% surcharge.

Parents/Guardians can apply to enable the prepaid card to allow ATM cash withdrawals at a maximum daily limit of $250.

Also, if you sign up to Spriggy now you can get the first 30 days free. In addition, Spriggy is offering eligible members their first year paid for thanks to NAB. This offer ends 30th of June, 2023. 

Is there a minimum or maximum deposit limit?

Yes. The minimum you can deposit onto the card is $10, while the maximum transaction limit is $250. There’s also a maximum balance of $999 across a single child’s account. For example, you could have a ‘Parent Wallet’ account balance of $700, $49 on the ‘Spriggy Card’ account and $250 in ‘Savings Goals’ account, but anything higher and you’d be over the limit. 

As a side note, Spriggy is currently experimenting with increasing the maximum amount by $4,999 with a limited number of families so there could be an increase in the future. 

Will Spriggy accounts earn interest?

No, which is a major bummer. According to Spriggy, due to regulatory constraints, they can’t offer interest payments on their product as they are not a bank.

What are the other useful features?

Instant transfers: If there’s ever an emergency you’ll be safe in knowing that you’ll be able to instantly transfer funds from your linked debit card to the ‘Parent Wallet’ account and then into the ‘Pocket Money’ account for your child to access. However, a transfer will usually take around 3-5 business days.

Alerts: Receive text alerts if a transaction on the Spriggy card has been declined because of insufficient funds or because of security issues.

Card lock: If the card is lost or stolen then either you or your kids can use the lock function feature to block future purchases.

Multiple users: Keen for more than one of your kids to get on the app? Not a problem, because Spiggy allows one family account for multiple kids.

Scheduled transfers: Want to make it really feel like your kids are receiving weekly pocket money? Well the app allows you to set up scheduled transfers from the ‘Parent Wallet’ account to the ‘Pocket Money’ account.

So how does Spriggy compare to traditional kid’s accounts?

Spriggy may have a number of appealing features which make it a great way to get kids involved in making financial decisions from a young age, but how does it stack up against some of the other competitors such as ZAAP?

Source: Mozo, rates correct as of January 19th 2023

The Verdict

If you’re after a more hands on approach for you and your children to take on the world of personal finance, then Spriggy could be the option for you. You’ll just have to weigh up the yearly fees, but the practical benefits the app provides are nearly unparalleled compared to traditional accounts.