Jul 31, 2024
"Children begin forming money habits at the age of seven." - Louise Hill
The inspiration behind GoHenry is a relatable story to parents across the globe. "The idea was born out of a real need – to give children the skills to be smart with money from an early age."
Louise Hill, Founder & CEO of GoHenry – a pioneering app that focuses on providing financial education to children – goes on to explain, "My two kids were lucky enough to be given iPods... I had given them the login to my iTunes account and, frankly, they were having a great time. They were downloading music without a care in the world. And I was trying to figure out, 'how do I get them to understand that every time they clicked that button they were spending money?' I started printing out the invoices that iTunes used to email you for every 79 pence download, and pinning them on the fridge."
When it came time for Hill's kids to collect their pocket money, they were quite disappointed to hear they'd already spent it. Understandably, Hill felt defeated and began talking to other parents about her frustrations, and learned that everyone felt similarly. "Kids had started to use money online without us realizing it. I couldn't find anything anywhere that gave parents the tools to teach their kids [financial literacy] or... help them put controls or limits around [spending]. And that was where the idea came from."
With a vision to teach children about money through practical experiences, GoHenry has transformed from a prepaid debit card to a comprehensive financial education app. A few key themes from the episode include:
1. GoHenry's Expansion and Strategic Growth
GoHenry's journey from the UK to the US, and now into Europe through mergers and acquisitions, showcases strategic growth at its finest. Hill elaborates with us on navigating these expansions, focusing on the successful merger with Acorns and the acquisition of Pixpay.
"Expanding into markets like Italy, France, and the broader US has allowed us to cater to a wider range of financial needs for customers of all ages," she says.
2. Innovative Education Tactics
The unique approach GoHenry uses to teach financial concepts makes learning engaging and effective for different age groups. Dividing content into age-specific modules, the app covers the basics of money management and more complex topics like investing and online safety.
"Our goal is to make financial education accessible and fun, breaking it down into bite-sized lessons that kids can easily understand," Hill explains.
3. The Power of Resilience
Hill opens up about the setbacks and challenges faced early on in GoHenry's journey, including a crucial moment when funding was withdrawn by a family bank. "We... realized pretty early on that we needed to raise about three-quarters of a million pounds in order to get the business off the ground. Because in order to fund a prepaid card and app, we needed to plug into all of the banking systems, and that's reasonably costly. So we set about finding that money. We thought we'd found it fairly early on... with a family bank that committed to put in probably two-thirds of the money and then the rest from individual angels. But right at the last minute, the best way I can describe it is, 'son number three flew in from another country and decided he didn't like it at all.'"
Yet, her determination to serve an underserved market fueled their perseverance. "Believing in our mission and adapting quickly to challenges was key to our success," she reflects.
Key Takeaways
For those invested in financial education and entrepreneurial growth:
- Start early! Teaching kids about financial concepts lays the foundation for smarter financial decisions in adulthood.
- Don't act as a roadblock to growth. Build with scale in mind from day one.
- Partner wisely! When GoHenry began offering free accounts to Acorns' premium customers, onboarding and rapid growth felt seamless.
For a more comprehensive dive into these topics, tune in to the full episode below.
