Financial literacy, it appears, is on the decline among young people. According to a recent study, only 57% of adults in Canada and the US have financial security.
Further to that, an S&P Finlit Survey revealed that only 33% of adults worldwide are financially literate. As many of these stats continue to circulate, it’s becoming crystal clear that we’re in the midst of a real crisis when it comes to financial knowledge.
Certainly, school curriculums aren’t of much help. While the topic of finances has been making its way into some classrooms across Canada, mostly, options for teachers and parents to educate kids remain underwhelming.
Treasure – a new Canada-based startup argues that we also need tools outside of the classroom — ones that will assist parents in raising financially responsible (not to mention, successful) adults.
The financial education platform is designated for families and their kids and is taking an innovative approach to bridging the gap by providing hands-on experience in the form of an educational app and prepaid Mastercard for kids — the first of its kind in Canada.
The apps (one for parents and one for children) teach kids key lessons in personal finance, while the kid-safe prepaid card allows them to put those teachings to practical use — creating space for families to have meaningful conversations about money.
The platform is structured around a weekly payday that mimics working adult life. It can also adapt to a multitude of parenting styles, including allowances and chore-based rewards — or a hybrid of the two.
By laying the groundwork for understanding fundamental financial principles — like savings goals, spending habits, investing basics, the value of giving, and the importance of living within your means — Treasure’s mission is to empower parents to give their kids the tools they need to understand how money really works. The intended outcome, according to the startup’s creators, is to secure a prosperous financial future for generations to come.
Using a freemium model, Treasure allows parents to use the app without the card for free, whereas the prepaid Mastercard comes with a nominal monthly fee ranging from $5 to $10 a month depending on the selected plan.
But on top of offering the first prepaid Mastercard for kids in Canada, Treasure is also offering equity crowdfunding opportunities to investors who want to get in early on. In addition to bolstering a platform that’s helping parents raise financially smart children, there’s the latitude to cash in and become a co-owner.
To date, the startup has a raised a total of $430,000, including investments from the CEO of PureFacts Financial Solutions and Techstars.
Currently, their FrontFundr campaign has raised $118,150 of its $250,000 goal — all of which will go directly towards customer acquisition, product development, and expanding their internal team.
While the minimum buy-in starts at $250, investor tiers range from Topaz to Diamond — each level offering its own exclusive perks.
As the company scales, they also intend to partner with other financial service providers in order to expand the features available to customers.
To learn more about Treasure’s mission and to invest, visit frontfundr.com/treasure.