The youth banking market has seen growth over the past decade, but it still has a long way to go. Throughout the years, banks have focused much of their efforts on chasing the customers with the most money. Higher net worth customers can increase a bank’s deposits, be willing to take advantage of more of the bank’s product offerings, and often come with lower risk of default. Children and teens, however, are less appealing of a market, as they generally do not add a lot of assets and can come with additional headaches, such as special regulatory requirements.
That said, 2025 may be a breakout year for youth banking, which is set to experience significant growth as enabling technologies, evolving customer needs, and market opportunities create a perfect storm.
FinTok is making finance cool
Short form video platforms like TikTok, YouTube, and Instagram have evolved from places to post fun dance videos to become hubs for financial education and empowerment. This is especially true for Gen Z users, who spend a lot of time on these social platforms. The financial niche of TikTok, FinTok, has turned into a channel in which influencers simplify financial concepts, share savings and investing tips, and make financial education entertaining.
Banks and fintechs have yet to fully embrace this style of communication, largely because of the regulatory implications. Whether or not they are trying to reach out to clients on the social platforms, however, the fresh content is working to promote new interest in finance among younger generations. In 2025, banks that embrace the FinTok trend could stand out as financial partners for a new generation of financially curious consumers.
Financial education is on an upswing
The U.S. historically has been poor at integrating financial literacy in education systems, but that is rapidly changing. Schools, nonprofits, fintechs, and banks have increasingly prioritized financial education, integrating it into curricula and offering free resources to both parents and children. We’ve also seen a rise in apps that gamify learning about savings, budgeting, and investing. For banks, this means that now in 2025, young consumers not only have interest in the financial ecosystem, but they are also starting off with a strong foundation and a greater appetite for digital financial tools.
Youth-centric features are increasingly common
Gone are the days when “youth banking” meant a basic savings account with parental oversight. In 2025, you can expect to see these platforms include a wider range of features, including gamified savings goals, allowance management, safe spending controls, and even investment tools tailored to teenagers.
Banks and fintechs that prioritize these youth-centric tools with intuitive design elements will create stickier products. Many are doubling down on youth-friendly offerings via partnerships with companies such as Greenlight, which partners with a wide range of banks, including U.S. Bank, to empower families with financial tools.
Youth banking tools offer a means of differentiation
With the fintech landscape becoming increasingly crowded, youth banking tools provide an opportunity for differentiation. By offering new, unique features for traditionally underserved kids and teens, firms can stand out while capturing an untapped market segment.
Youth-focused offerings also serve as a way to engage the entire family, as parents will likely appreciate tools that not only educate their children about money, but also offer a starting point for them to establish their financial standing. As the banking landscape becomes more crowded in 2025, we can expect to see more youth tools that serve as a differentiator.
The great wealth transfer is already underway
The great wealth transfer, the impending movement of $84 trillion in wealth from Baby Boomers to Millennials and Gen Z is one of the most significant financial shifts of our time. In fact, the funds transfer is already underway as some Millennials and Gen Z have already started receiving inheritance. As organizations seek to capture this wealth, marketing to children and teens will allow firms to capture some of the wealth from those who are just starting their financial journeys.
Millennial parents are seeking to break the cycle
Millennials experienced financial hardship during the 2008 recession and some are still reeling from a combination of that downturn and burdensome student loans. The majority of Millennials are now parents, and because many feel like they were shortchanged in financial education and opportunities, they are are determined to equip their children with better financial habits.
Unlike previous generations, many Millennials are actively seeking to teach their kids about money management from a young age. Youth banking platforms, with features like savings goals and educational resources, align well with this parental mindset.
For banks and fintechs, 2025 is a great time to take advantage of dual opportunity. Not only can they capture the next generation of customers, but they can also strengthen relationships with their existing customer base of Millennial parents.
