How Prepaid-Powered Youth Payment Tools Are Helping Canadian Families Build Financial Confidence

By Carey Madsen

Digital payments are a common part of how kids learn to manage money. As families look for ways to give young people  financial independence without losing visibility or control, youth-focused prepaid cards have emerged as a practical option.

Unlike a credit card, a prepaid card limits spending to the funds available. For kids, that creates an opportunity to make purchases and manage money without taking on debt or overdrawing an account. Youth-focused prepaid products can also pair the card with parental controls that help adults stay involved. Depending on the product, parents may be able to load or transfer money, set spending limits, restrict certain types of purchases and see transactions in real time.

Those features can give kids room to make everyday money decisions within boundaries their families are comfortable with. They also create opportunities to put concepts like budgeting and saving into practice. A spending limit becomes something a child has to manage, a balance has to last until the next allowance, and a purchase can mean putting off something else they were saving for.

How prepaid is showing up in youth payments

Several products illustrate how youth payments are taking shape in Canada.

Mydoh pairs a money management app with a reloadable prepaid Smart Cash Card for kids and teens ages six to 17. Parents can transfer money into the app from a bank account, while kids can use the funds on their prepaid card for purchases in stores or online. Parents can see their child’s spending history, receive real-time spending notifications and lock the card when needed.

Wealthsimple is also applying the model through its Kids and Teens Accounts, which are currently in beta and not yet available to all clients. Children receive a prepaid Visa card and a simplified app experience, while parents can send one-time transfers or establish a recurring allowance. Parents can set per-transaction, daily, weekly and monthly spending limits, restrict certain transaction types or merchant categories and view balances and transaction histories.

Additional use cases have emerged outside Canada. In the U.S., Marqeta is supporting Google’s Wallet for kids offering, which lets supervised kids and teens under 18 receive and spend allowances through Google Wallet. Parents can set daily spending limits, view transaction history and notifications and lock or unlock the balance. Kids can then use compatible devices to tap to pay in stores.

The products differ in how families fund accounts and manage controls, but each gives younger consumers  a way to participate in real financial decisions with adult oversight. Mydoh’s experience offers a closer look at what young people can learn when everyday spending and saving decisions become their own.

To explore that further, we interviewed Angelique de Montbrun, CEO of Mydoh, and Lisa Min, Head of Product at Mydoh, about building financial confidence, learning from mistakes and the youth banking trends they are seeing in Canada.

1. Your new financial resilience research shows a gap between what kids know and what they can do with money—what’s one concrete product change you’ve made, or plan to make, as a result?

Lisa: Something we’ve believed since Mydoh launched is that young people learn best by doing. That’s why we continue to invest in features that help build financial confidence through real experiences in a safe environment. For example, Mydoh allows young people to set savings goals for things they want to buy and track their progress over time. Parents can also use the Savings Boost feature to contribute towards those goals, creating opportunities for encouragement and positive reinforcement along the way.

As the young people using Mydoh grow and their financial needs evolve, we’re focused on providing tools and experiences that grow with them. Our goal is to help young people build confidence by managing money early, so they’re better prepared for financial decisions later in life.

2. Where do you deliberately let a kid “mess up” with their Smart Cash Card, and how do you help families turn that into a useful learning moment instead of a conflict?

Angelique: While one in five Canadian parents say they step in to fix financial mistakes, we believe those moments can be valuable learning opportunities. Creating space to reflect, rather than immediately solving the problem, helps kids build confidence, resilience and better money habits over time.

Lisa: With Mydoh, one example is when a purchase is declined because there isn’t enough money available on a Smart Cash Card. Because it’s a prepaid card, the experience is a safe and reversible way to learn, without the risk of overdraft fees or debt. While disappointing in the moment, it helps young people connect spending decisions with real financial outcomes.

Real-time notifications also give parents an opportunity to step in as coaches, creating space for reflection and conversation rather than conflict.

3. As more youth money apps launch, what’s one thing you refuse to turn into gamified “financial literacy content” and insist on keeping as a real-money decision?

Lisa: Mydoh strongly believes that young people build genuine financial confidence through real experiences with money, not simulated scenarios. Making spending, saving and budgeting decisions with their own money helps them develop the judgement and habits that carry into adulthood.

Aspects of gamified learning like the use of leaderboards and comparative spending could encourage unhealthy competition or shame. Real financial confidence is personal, not comparative.

4. What has day-to-day prepaid use—checking balances, hitting limits, even getting declined—taught you about how kids think about “only spending what you have”?

Angelique: We’ve learned that when young people are responsible for their own money, they become more intentional with it. We see kids regularly checking their balances before making a purchase - a simple practice that is foundational to understanding the value of money and the basic principles of budgeting. It helps them connect spending decisions with what they can actually afford.

We’re also seeing this awareness translate into stronger saving habits, with more money moving into our Savings feature (General Savings and Savings Goals). Since launching Savings goals in 2024, savings activity on Mydoh has increased nearly 300%.

5. Anything else you’d like to share about your perspective on youth banking trends in Canada?

Angelique: One interesting trend we’re seeing is the rise of household finance, where financial products are increasingly designed to help families engage with money together. That’s a positive shift because financial habits often start at home.

At the same time, youth banking can’t simply be an extension of adult banking. Young people need opportunities to build confidence through their own experience with money, in ways that are appropriate for their age and stage of development.

Ultimately, the goal isn’t just access to financial products - it’s helping the next generation develop the skills, habits and confidence needed for long-term financial wellbeing.

Supporting better money habits from an early age

Youth payment tools can make financial learning part of everyday life rather than a lesson that happens separately from it. Managing a limited balance, deciding whether to spend or save and occasionally making the wrong choice can give young people experience with the trade-offs behind money decisions while parents can still provide guidance and set appropriate boundaries.

As more youth-focused financial products expand across the Canadian market, parents can look for tools that balance independence with appropriate safeguards and visibility. Giving kids opportunities to manage real money within clear boundaries can help them build the habits and confidence they will need as their financial responsibilities grow.