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SquareOne Review

In this review, we look at SquareOne, New Zealand’s first pocket money app, its features, benefits, pros, cons and must-know facts.
Updated 6 October 2023

Summary
  • SquareOne is the first app in New Zealand that offers child-specific saving and financial literacy innovation.
  • SquareOne encourages children to earn, save and manage money with the help of a parent.
  • Launched in late 2021, SquareOne provides a child with a debit card and online savings balance that a parent can monitor.
  • It's not a bank account, it’s a prepaid card, and children can’t withdraw cash, they can only use the card - meaning parents retain oversight of all activity.
  • SquareOne is the first app of its kind in New Zealand, but similar services have become very popular with parents and children overseas.
  • SquareOne competes against kids bank accounts (see our review of the current offers here). Still, none of these bank accounts offers the ability to set savings goals, jobs to earn money or the learning and development that SquareOne’s app seeks to deliver. 

To help understand what SquareOne does (and doesn’t) do, our review covers:

SquareOne - Key features

  • Mastercard prepaid debit card – Every child receives a prepaid card that can be topped up and used in shops and online.
  • Mobile app functionality - SquareOne is operated by a parent and a child using a secure app.
  • Regular and one-off payments – Parents can set up regular pocket money payments, set jobs/tasks and pay out money when finished. Payments are made using a parent’s debit card, and there is no transaction charge.
  • Instant notifications – Parents and children both receive instant spending notifications, which helps to keep track of money
  • Savings goals – To achieve savings, children are encouraged to set up savings goals and transfer money into the different sub-wallets, known as “pockets”. 
  • SquareOne costs $4.99 per month (for an account giving access to up to 2 parents and 5 kids)
  • There's a $5,000 limit across the family at any one time, and a $10,000 load limit across the year.
  • Download to start - You must download the SquareOne app to set up an account. This video outlines the service best; we consider the walkthrough to be essential watching.

Understanding what Parents and Children can do

What can children do?
  • Earn money by completing tasks and receive pocket money
  • Set up and follow savings goals using “pockets” – dedicated savings accounts with a specific goal attached. For example, setting goals like “saving for a scooter” or “saving for a Lego set”
  • Spend on the card
  • See a transaction history of all payments received (e.g. their earnings) and their spending
  • Budget pocket money payments

What can parents do?
  • Manage an unlimited number of children’s accounts in the app
  • Set up regular payments to cover pocket money or allowances
  • Make one-off payments
  • Set tasks that are rewarded with a payment
  • Receive spending and task achievement notifications

​How to set up a SquareOne account

Setting up a SquareOne account is easy, but you’ll need to share a few personal details. The steps are outlined below:
  1. Download the app (available for Apple or Android)
  2. Register you and your kid(s) - you will need to enter personal details such as your name, email, and mobile number and then choose a password to create an account. Once done, your card(s) are ordered and sent within a week. 
  3. Start using the app – SquareOne can be used right away, so there’s no need to wait for the cards to arrive. The features and benefits can be set up, and kids can start earning immediately.
  4. Parents can load the “parent wallet” – SquareOne makes it clear that adding your card is secure. The parent wallet offers an overview to help manage pocket money, payments, and parental controls. After that, parents can set up weekly pocket money, create jobs, and engage with their child about their savings goals. 

​How much does SquareOne cost, and how does it make money?

SquareOne costs $4.99 per month per family (up to 2 parents and 5 kids), which gives you access to all of the features outlined above. Importantly, the company aims to build a full family finance offering, and have fee-bearing products for parents. There's a $5,000 limit across the family at any one time, and a $10,000 load limit across the year.

​How does SquareOne make money?
SquareOne was launched in November 2021 per this Stuff.co.nz promotion. Per its terms and conditions, SquareOne charges a monthly subscription fee and a few other fees, detailed below:
  • Subscription fee of $4.99 per month (for up to 2 parents and 5 kids)
  • Card replacement fee prior to expiry: $10 (payable at the time of requesting or requiring a replacement card)
  • Unsuccessful disputed transaction claim fee: $10 (payable at the time SquareOne notifies you of your unsuccessful claim)
  • Currency conversion fee: 3% of the total amount of each relevant transaction.

Other activities are free of charge, including loading, inactivity (i.e. if you don’t use the card or app), cancellation or termination, card renewal/re-issue when it expires, and other services. 

Who owns SquareOne? Is my money safe?

SquareOne was founded by two parents with young families, looking for a way to teach their kids about money in a cashless world. The company is partnered with Mastercard, and backed by private investors, venture capital funds and investment companies. The founders have a wealth of experience in payments, banking and Fintech with careers of 15+ years each.

With regards to the safety of your money, SquareOne makes it clear here:
  • All customer funds are held in an ANZ trust account. Adding to that, SquareOne is a New Zealand-founded company and registered as a Financial Services Provider (SquareOne App Ltd: FSP1000546 and SquareOne Nominee Ltd: FSP1000691). 
  • Importantly, all customer funds are held on trust. This means that SquareOne can’t use your money in any way – they can only hold the money securely on your behalf.
  • SquareOne works with Mastercard to provide the payment service and is a principal licence holder. Finally, SquareOne is also a member of a dispute resolution service - FSCL (Financial Services Complaints Limited). 

SquareOne - Pros and Cons

Pros of SquareOne
  • Allows kids to become familiar with money and provides them with financial independence.
  • Making payments for pocket money and chores is easy and cashless using the app, and it’s easy to use and understand. 
  • Adults can track the earning and spending, allowing complete oversight of when and how children spend their money.
  • You can block the card at any time.
  • It’s free to join, with a $4.99/month charge thereafter (which covers up to 2 parents and 5 kids)
  • It’s free to load money.
  • Payments to retailers selling R18 items (e.g. alcohol, gambling etc.) are automatically restricted.

Cons of SquareOne
  • No interest is earned on savings
  • It’s not a bank, so the money earned can only be spent or saved. The company plans to add charity and investment features in the future.

Know This:
  • SquareOne doesn’t allow you to withdraw money from an ATM. Their support centre explains that this is about ensuring parents can see where their children spend their money – you can read the full explanation here.

​SquareOne Alternatives

SquareOne is the first to offer an independent money solution aimed at empowering and educating children. Alternative apps include Klever Cash (ASB), however this service is currently on hiatus and no longer accepts new applications. We will compare it against SquareOne if and when it returns.

Frequently Asked Questions

​Is SquareOne safe?

  • The money in your SquareOne account is held as electronic money – SquareOne is not a bank, and your money is not held in an account as it is a prepaid card.
  • SquareOne is not a bank, but a registered FSP (Financial Services Provider)
  • All money held with SquareOne is held in a secured ANZ commercial trust account for the benefit of its customers. 

Can SquareOne be used overseas?

Yes, you can use SquareOne overseas. However, there will be additional foreign exchange conversion costs (Currency Conversion Fee: 3% of the total amount of each relevant transaction). Our research proves that several cost-effective travel money solutions exist – our travel money cards guide has more details. SquareOne can be used anywhere that accepts Mastercard cards.

How do I cancel a SquareOne account?

Parents need to contact SquareOne’s support team to close an account. 

Does SquareOne integrate with Google and Apple Pay?

Not yet – but SquareOne makes it clear here - “SquareOne will soon be available via Apple and Google Pay. Once that is available, some terminals will accept the phone biometrics instead of a PIN. Meaning you can use Apple and Google Pay for contactless transactions of any amount as you will have already performed verification to unlock the wallet on your phone”. If kids are using Apple and Google pay, their respective age limits will apply.

We continue to update this review as new features are added.

​Summary and Conclusion

  • SquareOne is an innovative app that gives adults and children the power to teach and learn about money management.
  • The ease of operations is what makes SquareOne stand out – the app is easy to download, and because the card isn’t connected to a bank account, there are no regulatory delays in getting started. 
  • Adding a payment card allows the parent to make regular pocket money payments and set specific jobs or chores that the child can see. Once these are achieved, parents can send children the money.
  • SquareOne doesn’t allow cash withdrawals, which arguably is a sensible limitation. However, by doing so, children have a record of where they spent their money which enforces good behaviour. Likewise, parents have a trail of where the money was spent to help support decision making.
  • Overall, SquareOne provides a service that teaches basic financial skills while allowing independence.
  • The $4.99/month standard fee provides value for money if you and your child or children use the features regularly.
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