Louise Hill, co-founder & COO of the children’s financial education app, GoHenry, recently sat down with Finextra to discuss developing financial resilience at a young age and their recent acquisition.
GoHenry offers Money Missions, which are financial lessons targeted to children of different ages, ranging from 6-10, 10-14, and 14+. The app covers the national financial education curriculum in the US and UK respectively, and offers gamified missions, quizzes, and lessons for children to gain essential monetary skills.
Kids are awarded certificates and badges on various topics within the app, and Hill adds that “elements are triggered by behaviour. Let's say a child went to look at their savings goal, that might trigger something about how saving for something long term works, the value of waiting, and saving up before you buy something rather than flushing money away. It is designed to build financial resilience and teach kids to feel empowered with money.”
Hill comments on how Gen Z and the younger generation today are digital natives, stating that there has been a major shift in children's shopping habits to digital and card payments. She emphasises that only 14% of kids choose to spend in cash.
The founding principle of the company was that there was nothing in society that could help teach children about how to be good with money. The recent challenges around how to keep on top of consolidated debt, the emergence of numerous Buy Now Pay Later (BNPL) providers, and the rising cost of living, has made it even more essential for young people to become confident with how they manage their money than ever.
Recently, GoHenry announced its acquisition by American saving and investing app, Acorns. On the transition, Hill speaks on the alignment of goals and values at both companies:
“Their mission was very clearly defined as financial wellness for what they call the ‘everyday American.’ So, not sophisticated investors, but encouraging everyday people to start investing early in a small, non-invasive way. It's simple and easy to understand what to build from an acorn-they use the phrase ‘to a mighty oak.’ Members can build their savings with compound interest they invest for the future. Education is fundamentally built into the services that they provide; we are the same.”
One in five 10-12 year olds are using GoHenry in the UK. Merged with Acorns, GoHenry has over 6 million customers in both the US and UK. In Europe, GoHenry is expanding with the company acquired in 2022, Pixapay, that operates in France, Spain, and Italy.
On assisting young adults and over 18 year olds, Hill expresses keen interest in furthering that goal to expand their services for people of all ages. “Last week I used the phrase: from 6 to 106!” Hill jokes.
Recently, Finextra covered an event at Parliament held by the Centre of Financial Capability of which Hill is a trustee. On the Government’s role in the financial education front Hill remarks:
“If the government's prepared to get behind the aim for every child in the UK to have a financial education by 2030, and they are prepared to release dormant assets, I think it's very achievable. The difference that can make to not only individuals, but society, runs through everything. From businesses being run better, more businesses being started, more money in the economy, more people being employed, more people having pensions, to savings being more resilient. It touches everything.”