Recently, somebody asked me if they should allow their teenager to use an online banking app called Yotta. Yotta is interesting because it applies interest using a lottery format. If you read Yotta’s strategy, it really does sound like a scam. However, I can promise you that you should allow your teenager to use Yotta.
Viewer Discretion: I am not a financial advisor and any advice taken below is for educational purposes only. Some of the links below are affiliate, meaning I may profit of off them with them with no extra expense to the customer.
Saving with a twist
Yotta is almost built for teenagers. My child is currently very young, but if my child was older I would want them using Yotta right away. Teenagers often struggle greatly with saving. Teenagers struggle because it seems boring. Why save for my future when I can buy Nike shoes right now?
Yotta adds the perfect spice to saving for teenagers. Once a week you get to pick your numbers for that week. Every night Yotta will draw numbers and you will get rewards if your number is drawn. The prizes range from ten cents to a Tesla to ten-million dollars.
The incentive to save here is crazy. The more you save the more tickets you get so the more likely you are to save more money. For teenagers one win could hook them and next thing you know their entire life savings are in Yotta.
The earlier you start saving the better, so getting teenagers saving early is the best thing you can do. Also, since young people are much more likely to buy lottery tickets, there is a good chance that your teenager will “buy” more lottery tickets if they win. By “buying lottery tickets” your teenager will actually be saving.
The best part is that your teenager is almost guaranteed a prize. The minimum deposit amount is twenty-five dollars, which equals one ticket a week. However, if you use code GETYOURGREENZ when you sign up here you can receive one-hundred free tickets. With these one-hundred free tickets, you are nearly guaranteed a prize.
Yotta Sharing Feature
Another major perk of Yotta is that there is a huge incentive for sharing your code. Every time you share your code, you get one-hundred free tickets. If you keep working your way up you can eventually get one-thousand tickets per share. The sharing feature is perfect for social teenagers.
If your teenagers can spread the practice around the school, everyone will learn a valuable lessons about saving. Now knowing the practice of saving is huge for you and your child. After all, you are trying to retire to the good nursing home when you grow up.
Besides the obvious benefits of learning the habits of saving, there is one word that makes Yotta worth it for any teenager. The one word that if we knew as teenagers could have made us incredibly wealthy: interest.
Interest is a huge dictator in wealth, and if you want your child to be financially successful, you need to start now. One-hundred dollars can increase significantly over time. I would undoubtedly allow my teenager to put money in the bank for this reason.
Besides, money in the bank saved for college will always beat your child wearing flashy clothes that will go out style in three months anyway. Teenagers need to learn discipline with money and saving in Yotta is a great way to start.
With all of that being said, recently I wrote an article here discussing all of the bad sides of Yotta and my overall rating of the app. I rated the app pretty low for a variety of reason. The main reason why is because I believe that Acorns is a much better app for investing. If you would like to read more about my review on Acorns check that article out here.