Stash, a digital investing app that’s expanded to a full complement of financial product offerings including banking and financial wellness and savings tools, has acquired PayGrade, a financial literacy platform aimed at school-age kids. Terms of the deal were not disclosed.

Why should we care?
PayGrade is Stash’s first acquisition. The company currently has 6 million users on its platform and $3B in assets under management. The move is likely a way to win over the hotly contested teen market, for which other industry players, including Fidelity, are offering no-fee investing products. Stash currently offers custodial accounts for children that are set up and administered by parents. With the educational tools from PayGrade, Stash can more effectively market to young customers through broader educational messaging, which it calls an “immersive personal finance curriculum designed around simulated banking and investing.” PayGrade amounts to a virtual bank and investment simulation, according to Stash CEO Brandon Krieg. PayGrade, which is used by around 100,000 students, will be rebranded as Stash 101. Amid heightened interest in investing among younger users, one of the objectives will be to inform young people of the opportunities as well as challenges to keep in mind. The company doesn’t promote day trading, and it doesn’t allow margin or short-selling. “We don’t think the world needs any more casinos on phones in the pockets of kids,” Krieg noted.