Design an ATM for Kids – PM Interview Question

Here’s a structured way to tackle this question, step by step.

1️⃣ Clarify the Problem

Before diving into solutions, clarify the scope:

• Who am I?
  Am I a manufacturing company building ATMs as a physical product, or am I responsible for software features while hardware is outsourced, or both? Both (Assumption)
• What are we building?
  Since this product is for kids, I assume we are building a new product from scratch — not improving existing ATMs.
• Goal: The goal is to help parents teach kids financial literacy (saving, spending, managing money).
• Demographics:
  Target market = India
• Who are we building this product for:
  • Schools as commercial ?
  • Bank ATMs in India? Yes
• Competition:
  Assume this is a new market, so MVP should focus on usability + core goals.
• Age segmentation:
  • Kids (6–8): Low impact, too dependent to use ATMs.
  • Kids (8–10): High impact – right age for introducing financial tools.
  • Kids (10–13): Already aware of ATM basics, familiar with adult machines.
• Decision makers: Parents (primary), but teachers/grandparents also influence.

Clarifying upfront shows interviewers that you think about users, decision-makers, and constraints first.

2️⃣ Understand the Users

Kids (Primary Users):

• Need height-friendly, simple, engaging design.
• Want to learn basic transactions in a safe way.

Parents (Secondary Users):

• Want to teach financial literacy.
• Want to monitor and control usage.
• Concerned about reliance on cash and safety.

Teachers/Grandparents (Mediators):

• Potential advocates who encourage learning.

3️⃣ Identify Pain Points

For Kids:

• Can’t physically reach ATM height.
• Lack money, motivation, or understanding of PINs and withdrawals.
• Struggle with text-heavy or complex instructions.

For Parents:

• Limited ways to teach money management.
• No tools to monitor allowances or habits.
• Concerns about kids handling real cash securely.

4️⃣ Research Plan

Qualitative:

• User interviews with parents (Including kids)
  • Kids sharing their perspective with their parents

Quantitative:

• Surveys (parents primarily).
• Secondary data: online reviews, social media comments.

Competitive Analysis:

• Check if similar solutions exist, and analyze strengths/weaknesses.

5️⃣ Proposed Features (MVP)

Transactions:

• Deposit (coins + notes).
• Withdrawal (notes + receipts).
• Pop-up confirmation + kid-friendly voice prompts.
• Notifications sent to parents.

User Identification:

• Card + PIN (with reminder pop-up for card removal).
• Optional: Camera scanner to detect kid and link with parent for security.

Parental Controls:

• App or web-based dashboard.
• Load balance easily.
• Track balances + expenses.
• Per-transaction notifications.

Design:

• Height-friendly, with big buttons.
• Voice-friendly interface (optional).
• Kid-friendly UI (bright visuals, intuitive flows).
• Clear flows: Add Money / Take Out Money, etc.

6️⃣ Prioritization of Features

Feature	Effort	Impact	Priority Rationale
Parental Controls	Medium	High	Critical for trust. Parents are gatekeepers, so monitoring and limits must come first.
Transaction Basics	Medium	High	Core to the ATM use case: deposit/withdrawal with confirmations.
Kid-friendly Design (UI/UX)	Medium	High	Ensures accessibility (height, visuals, big buttons). Without this, kids cannot use independently.
Notifications to Parents	Low	Medium	Reinforces parental trust; complements core controls.
Voice Prompts	Medium	Medium	Improves accessibility, especially for kids with limited reading ability.
Camera Scanner (optional)	High	Low	Adds security but not essential for MVP. Can be deferred.

I prioritize features that maximize parental trust and ensure safe usability, while balancing effort and long-term scalability.

7️⃣ Metrics for Success

North Star Metric:

• Number of active transactions per child.
• Number of active child accounts.

Business Metrics:

• CAC (Customer Acquisition Cost).
• LTV (Lifetime Value).
• Sales/Units Sold.
• Churn rate (parents discontinuing use).

Engagement Metrics:

• Frequency of use.
• Deposit vs Withdrawal ratio.
• Time spent on educational features.
• Goal completion rate (kids saving to a target).

Parent Satisfaction:

• NPS.
• Survey responses.
• App reviews/feedback.

Kids’ Satisfaction:

• Harder to measure directly → observe reactions + parental feedback.

8️⃣ Trade-offs & Risks

Technical Risks:

• Hardware reliability (cash/coin handling, durability).
• Physical/data security.
• Integration with companion app.

User Adoption Risks:

• Kids lose interest once novelty fades.
• Parents may not want added responsibility.
• Must balance “toy-like fun” with serious financial tool.

Educational Risks:

• Risk of becoming just a play machine, not teaching real financial literacy.
• Age-appropriateness varies widely.

9️⃣ Summary

In summary, designing an ATM for kids requires balancing fun, education, and parental trust. Kids need a height-friendly, simple, and engaging interface to learn money basics, while parents need monitoring, control, and safety.

I’d prioritize parental controls, basic transaction features, and kid-friendly design as the top features. Metrics like active child accounts, transaction frequency, and parent satisfaction would measure success.

Overall, this approach ensures both kids and parents see value: kids learn financial literacy in a safe environment, while parents remain confident gatekeepers of the experience.