CommBank-supported app Kit helps parents and kids break down money taboos
Kit, an app backed by Commonwealth Bank of Australia, is on a mission to help parents and their school-aged kids build healthy money habits in a digital world.
- Kit is a CommBank-supported pocket money app that aims to help kids learn how to earn, save, and spend money.
- Parents can monitor and manage their children's spending in real time.
- Kit is free for the first 30 days, with paid subscription plans available after the trial period.
Designed as an ‘earning-and-learning’ money app, Kit aims to teach kids the fundamentals of earning, saving, and spending money, while giving parents visibility and control.
It was launched in May 2022, initially rolling out in trial mode before expanding nationally.
How does Kit work?
Parents set up the account
A parent or guardian (aged 18 or over) creates a Boss account in the Kit app and links their own bank account. You don’t need to be a CommBank customer to use Kit.
From the Boss profile, parents can add one or more children, order a prepaid Kit card for each child, set spending rules and limits, and manage fees and subscriptions.
It comes in single and multi-child plans, the latter can be set up with up to five kids and each gets their own profile within the app.
Kids earn money through ‘PayDay’
With their own Kit account and prepaid card, kids can earn money for completing chores set by their parents. When kids complete their jobs, parents approve payment through PayDay and the money appears in the child’s Kit account.
Parents can choose whether money is paid (transferred) only once chores are completed, ideal for one-off tasks, or paid automatically on a regular schedule for recurring chores.
Kids learn to save with ‘Stacks’
In the app, kids can use their pocket money to create customisable savings goals called Stacks, which features an animated water level that rises as they reach their goal.
If a child withdraws money from the Stack, the app will provide a prompt or a ‘nudge’ to remind them of the impact this will have on them achieving their savings goals, thus encouraging reflection.
Kit Stacks savings feature (image supplied)
See also: 60 ways to save money
Spend money with the Kit card
Kids can spend their money for everyday purchases using a physical prepaid Kit card, which works much like a debit card. They can tap and pay in stores, make purchases within parent-approved categories (more on that below), and withdraw cash from ATMs.
The Kit card can also be added to the kid’s Apple Pay or Google Pay, allowing contactless payments via their mobile devices.
Earn interest by linking to CommBank Youthsaver
As it stands, Kit is not a bank account, it’s a pocket money app and a prepaid card designed for learning. And the funds are held by Kit’s financial services partner.
However, kids can earn interest on their money by linking their Kit account to their Youthsaver savings account.
Youthsaver is CommBank’s savings account for under 18s. It has no monthly account fees, and account holders can earn bonus interest by growing their balance each calendar month (excluding interest and transactions initiated by the bank).
Once linked, kids can unlock other functionalities in their Kit app, including viewing their Youthsaver balance and transaction history, see interest earned on their account, and transfer their pocket money (with the parent’s permission) into the savings account.
- Note, however, that kids are unable to transfer money out of Youthsaver back into Kit from within the app.
Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest interest rates on the market.
| Bank | Savings Account | Base Interest Rate | Max Interest Rate | Total Interest Earned | Introductory Term | Minimum Amount | Maximum Amount | Linked Account Required | Minimum Monthly Deposit | Minimum Opening Deposit | Account Keeping Fee | ATM Access | Joint Application | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
0.05% p.a. Bonus rate of 5.30% Rate varies on savings amount. | 5.35% p.a. | $1,097 | – | $0 | $249,999 | $0 | $0 | $0 |
| Promoted | Disclosure | ||||||||
2.25% p.a. Bonus rate of 3.15% Rate varies on savings amount. | 6.00% p.a. Intro rate for 4 months then 5.40% p.a. | $1,134 | 4 months | $0 | $499,999 | $0 | $0 | $0 | Promoted | Disclosure | |||||||||
4.00% p.a. | 5.90% p.a. Intro rate for 4 months then 4.00% p.a. | $936 | 4 months | $0 | $249,999 | $0 | $1 | $0 | Disclosure |
Parents stay in control
At the end of the day, parents remain in control. Through the Boss Mode they can monitor and manage spending in real time. Controls include:
- Setting daily or per-transaction spending limits
- Block specific merchants or categories
- Locking or unlocking prepaid cards
- Resetting PINs
- Viewing transaction histories
Spending and balance limits apply by default but can be adjusted in-app.
All these individual features can all be tailored for each child, making it easier to adjust rules as they get older. You may want to give your kid more control as they become more financially confident.
A modern solution to modern problems
A Kit-commissioned study in 2022 revealed 48% of parents avoid discussing money with their children, yet more than the majority (72%) are concerned about online games influencing their kid's attitudes towards money.
Conducted by YouGov, nearly half (49%) of the more than 2,000 Australian parents surveyed said their children (between 8-17 years old) spent money digitally without their knowledge or permission.
These parents said their kids spent an average of $179.31, with 22% notching up bills between $200 and $499.
The Kit app offers a solution to mums and dads struggling to keep up with the way their children are interacting with money through digital devices and online games.
See also: How to budget money
Speaking to Savings.com.au in 2022 Yish Koh, managing director of Kit, said it was becoming increasingly difficult to teach kids about money in the digital age.
Some of the avoidance of conversations around money comes from it being taboo, and often parents don’t know where to start.
While school education plays a really important role in financial literacy, the role that parents play is around positive money attitudes and behaviours, and that only comes with conversations and role modelling.
That’s what Kit is all about: it’s a tool to help kids and parents have healthy and stress‑free conversations.
Making money fun
The Kit app features an in-app Kit character designed similar to a video-game hero that teaches kids about money through prompts and nudges.
In September 2023, Kit introduced the Money Quests feature, which includes mini games, fortnightly quizzes to test their money skills, and nudges to encourage real-world money behaviours, like setting up a savings goal or developing better spending habits.
Ms Koh said that, given the clear gap in the market for a fun and engaging product with genuine educational substance, Kit was created first and foremost for young people.
“On a broader level, we really hope to demonstrate that Kit can substantially and measurably improve the financial capabilities of young people – that’s something we’ll continue to iterate our product around,” she said.
“At a more granular level, it would be great for families to shift the conversation away from kids nagging ‘I want this, buy me that’ to ‘I’ve got a bit of pocket money, there’s something I want to buy, and I know how I’m going to work toward it’.”
Kit fees and eligibility
Kit is free for up to 30 days and open to customers of any financial institution. After the trial, there are a couple of tiered pricing plans parents can choose from:
- $3 a month or $30 per year for the single child plan
- $5 a month or $50 a year for the multi-child plan (up to 5 kids)
- Free membership for eligible CommBank Yello customers
CommBank Yello is the big bank's “customer recognition” program. Eligibility conditions apply.
Kit charges no account, card, transaction, or withdrawal fees. It's important to note, however, that ATM operator fees may still apply when withdrawing money.
How to download Kit
The app is available to download via the Apple App Store and on Google Play.
More information on Kit can be found at heykit.com.au.