Alladin star, Will Smith and Nas, have invested in a new banking app for teens which will help them gain financial literacy. The company that developed the app is called Step. The two Hollywood celebs partnered in the funding, which is estimated to be $22.5 million, according to TechCrunch.
Parents will be able to monitor their child’s transactions, send money and place restrictions on their account, after which the app must have been attached to their MasterCard.
The restrictions placed on each MasterCard will also change as teens get older. For example, it will lend money for books and computers when they get into college.
The founder and CEO of Step, CJ MacDonald, said it important to teach young people about money management via an app since most of their purchase is through smart phones.
“Schools don’t teach kids anything about money,” he stated. “We want to emerge as their first bank accounts with spending cards, but we also want to teach financial literacy and responsibility at the same time. Banks don’t tailor to this, and we want to be a solution to the next generation of adults, teaching them to be more responsible with money in the cashless era. It was convenient with cash to go to the mall, but now everyone is using their phone for Uber and more.”
The app will first be sent out to the U.S. market, which reportedly has almost 50 million teenagers. MacDonald also indicates that the app will give teens a sense of independence, despite their parents still monitoring their transactions.
Smith and Nas aren’t the only Black celebrities who have invested their money toward helping the young generation gain financial literacy.
In 2018, 21 Savage teamed up with an organization called “Get Schooled” to teach kids about banking service. Also, he started the “21 Savage Bank Account Campaign” which will enable kids to learn how to properly handle their money.