PayPal Student Account: What It Was and Teen Accounts Today
In 2009 PayPal let parents give their teenage children a PayPal student account, a free sub-account with its own card and spending limits set by the parent. This article explains how the PayPal Student Account worked, when PayPal closed it, and which teen money accounts parents can use instead today.
Quick answer: The PayPal Student Account launched in the US in August 2009 as a free sub-account that parents funded and controlled, with a Student Card for shopping in stores. PayPal closed it in September 2016. Today, PayPal’s own option for US teens is the Venmo Teen Account for ages 13 to 17, opened and managed by a parent. For more choices, compare the best budget apps for teens.
Table of Contents
What was the PayPal Student Account?
PayPal announced the Student Account on 11 August 2009, just in time for back-to-school season. These accounts were sub-accounts set up by parents, which let teens safely use money and buy what they needed while giving them limited financial freedom.
What parents could do
- Keep track of all money spent by their children and set the spending limit they wanted.
- Run up to four PayPal sub-accounts for their teens.
- Transfer money on a one-time or recurring basis.
- Check balances, get low balance alerts and transfer money to their teen’s account from a mobile phone.
What teens could do
Teens learned to manage money and could shop online with PayPal, and in stores with the Student Card. They could only spend money that was in the account, so there was no credit to run up. They could also check their balance and ask their parents for money with a simple text message. The Student Account was available in the United States only.
What happened to the PayPal Student Account?
PayPal ended the program in 2016. It emailed users that student accounts would close on 29 September 2016, after which the student debit card stopped working. Any money left in a student account was moved to the linked parent’s PayPal account later that year.
PayPal’s standard accounts are for adults, so a teen cannot simply open their own regular PayPal account. If a parent no longer needs their own PayPal account, here is how to close a PayPal account.
PayPal student account alternatives for teens today
Venmo Teen Account (from PayPal)
PayPal owns Venmo (external site), and in 2023 it launched the Venmo Teen Account, the closest modern version of the old student account:
- For teens aged 13 to 17, opened by a parent or guardian who has a Venmo account.
- Comes with a Venmo Teen Debit Card (a Mastercard) for shopping in stores and online.
- Parents can see the balance and every transaction, lock or unlock the card, and send money to their teen.
- Teen transactions are private by default, and only the parent can change privacy settings.
- Parents cannot set their own custom dollar limits; they control spending by deciding how much money to send, and the account has built-in daily and weekly limits.
Teen debit cards from banks and fintech apps
Many US banks and money apps now offer teen or kids’ debit cards with parental controls, chore and allowance tools, and spending alerts. Compare fees, controls and whether the account is insured before choosing one.
Tips for teaching teens to manage money online
- Start with a small, regular allowance so teens learn to budget.
- Review the transaction history together once a week.
- Turn on spending alerts so you notice unusual payments quickly.
- Teach them never to share card details or login codes, and to watch out for scams and fake payment requests.
FAQ
Does PayPal still offer a student account?
No. PayPal closed its Student Account program in September 2016.
Can a teenager have a PayPal account?
Regular PayPal accounts are for adults. For US teens aged 13 to 17, PayPal’s option is the Venmo Teen Account, opened by a parent.
How many student accounts could a parent have?
A parent could run up to four PayPal Student Accounts for their teens.
Was the PayPal Student Account available outside the US?
No. It was only available in the United States.
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This is a great idea and obviously paypal are cashing in on a niche in the market. I live in a different country to my parents and this sounds like a great idea for them to send their grandkids their xmas and birthday money.
At the moment we are relying on the postal system to send cash and this can be a real pain.
thanks for the tip
sam
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