(Bloomberg) — U.S. financial-technology unicorn Stash wants to teach students about money management and potentially curb the next generation’s appetite for day trading, a pastime that soared in popularity during the pandemic.
The subscription-based firm is acquiring financial-literacy startup PayGrade, which makes a virtual bank and investment simulation used by schools, Stash Chief Executive Officer and co-founder Brandon Krieg said in an interview.
“We’re facing a massive financial education crisis,” Krieg said, adding that 43 U.S. states don’t require personal finance to be taught in schools. “So some kids aren’t learning about money at school or at home.” He said the issue goes beyond the recent trading surge by retail investors that has whipsawed stocks like GameStop and AMC Entertainment.
“The meme stock phenomenon shows people want to invest, and we want to help them plan how to do that for retirement, for kids, or over the next 10, 20 or 30 years,” Krieg said.
PayGrade is used by around 100,000 students who are mostly in elementary, middle and high school. It will be rebranded as Stash101, and be offered free for children through parents, teachers and organizations such as public school systems.
Although Stash offers some trading features, Krieg said its more than 6 million users demonstrate prudent financial habits as they take virtual steps toward amassing wealth, with automated, recurring deposit amounts totaling $31 on average. They’ve collectively saved over $3 billion.
