Money and investing apps for families: what each kind does

Search for "investment apps for families" and you'll find very different things lumped together: places that hold your child's Junior ISA, apps that give children a prepaid card, and apps that teach. They do different jobs, and many families end up using more than one.

We make one of these apps, so we're not a neutral judge, and we haven't tried to rank anyone. We don't earn anything from any provider or app we mention. Instead, here's what each kind of app is for, what to look for, and an honest description of where Squids-In fits.

Three kinds of app

1. Investment platforms: where the money lives

Examples: Vanguard, Fidelity, AJ Bell, Hargreaves Lansdown, interactive investor, and many others.

What they do:

• Hold your child's Junior ISA or Junior SIPP
• Let you choose and buy funds or shares
• Take payments, including regular direct debits
• Are regulated by the Financial Conduct Authority

What to look for:

• The total cost: the platform fee plus the fund charges
• Whether they offer the kind of account you want (Junior ISA, Junior SIPP, or both)
• The funds on offer, especially low-cost index funds
• How easy the app is for you, and later for your child, who can take control of a Junior ISA at 16

Worth knowing: these are built mainly for the grown-up who runs the account. Children usually can't log in before 16, and there's not much for them to learn from.

Our guides to Junior ISA providers and index funds go into more detail.

2. Pocket-money apps: learning to spend and save

Examples: several apps offer a prepaid card for children, run by fintech companies and, increasingly, by banks.

What they do:

• Give children a card to spend with, topped up by parents
• Let parents set limits and see what's spent
• Help with pocket money, chores and saving goals
• Some include short money lessons

What to look for:

• Monthly fees, which vary
• The controls you get as a parent
• The age range it's designed for

Worth knowing: these are about everyday money: spending, saving and budgeting. That's a great foundation, especially for younger children. They don't generally hold Junior ISAs or teach much about long-term investing.

3. Learning apps: understanding how money grows

This is where Squids-In sits. These apps teach rather than hold money.

What to look for:

• Lessons pitched at your child's age
• Something to do, not just read
• A way to try investing without real money at risk
• A reason to come back (streaks, rewards) that doesn't push risky behaviour
• A way for you to see what they're learning
• A clear line between teaching and advice

Where Squids-In fits

Squids-In is a learning app for children aged 10 and up, with a parent side for you. We don't hold or move money, and we don't give financial advice.

For children:

• 130 short lessons, from needs and wants to index funds. Read, practise, then a quick quiz
• The Island Market, a game where they invest pretend money (Squids) in ten made-up island companies and funds, read the island news twice a day, and see how their picks do against a steady fund
• The Time Machine, which slides their savings forward to 18, 30 or 65 to show what time could do
• Streaks, cards and badges, so there's a reason to come back tomorrow

For parents:

• See their progress: lessons done, levels and streaks for each child
• Set the rewards: choose what streak milestones earn, from bonus Squids to a real pledge into their fund
• You make the real calls: your child can ask to invest, you choose what they can ask for, and you say yes or no. Any real trade is yours to make, with your own provider
• Keep their accounts in one place: add each Junior ISA, Junior SIPP or savings account and what it holds. Prices for many popular funds update daily. You enter the holdings yourself; there's no link to your bank or platform

What it isn't:

• It isn't an investment platform. You'll still need one to hold a real Junior ISA or Junior SIPP
• It isn't a pocket-money card
• Squids are game money and can't be cashed out

Where we are now: Squids-In is in a small family beta, on Android, iPhone and the web. It's free while we test it. Places are by invitation: join the waiting list and we'll let you know when one opens up.

Putting them together

Many families use a mix:

• A platform to hold the real Junior ISA or Junior SIPP
• A pocket-money app, or plain cash, for everyday spending and saving
• A learning app, or kitchen-table conversations, so children understand what's happening to their money

None of these replaces talking about money at home. Our age-by-age guide to talking to kids about money has ideas for starting.

Common questions

Q: What age should children start with money apps?

A: Pocket-money apps are often aimed at children from about 6. Learning about investing tends to click from around 10, when children can think about what might happen years from now. Squids-In is designed for 10 and up; younger children can join in with a parent alongside.

Q: Can children make real investment decisions?

A: Not on their own. In Squids-In, a child can ask to invest, choosing from the options their parent has allowed, and the parent decides. Any real trade happens in the parent's own account with their provider. From 16, a child can take control of their own Junior ISA, so it's worth building their confidence before then.

Q: What about safety?

A: For any app that holds real money, check it's authorised by the Financial Conduct Authority. For any app your child uses, check what data it collects and whether you can delete the account. Squids-In collects only what the app needs, never sells it, and a parent can delete the family's account at any time.

Q: Are there free options?

A: Some platforms charge no platform fee on Junior ISAs, but funds still have their own charges. Pocket-money apps usually charge a monthly fee. Squids-In is free during the beta; we haven't decided on pricing after that.

Key points

• Platforms hold the money. Compare total costs and the funds on offer
• Pocket-money apps teach everyday money, mostly spending and saving
• Learning apps teach how money grows, without holding any
• Many families use a mix, alongside plenty of conversation
• Whatever you use, involve your child. Understanding their own money is the lesson that lasts

Next steps

1. Read up on the accounts: what is a Junior ISA? and what is a Junior SIPP?
2. Try the numbers in our Junior ISA calculator or Junior SIPP calculator
3. Start the conversation with our guide to teaching kids about compound interest

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This article is for education only and isn't financial advice. The value of investments can go down as well as up.