When you register as a parent for SquareOne you will be asked to create a 4 digit passcode. This 4 digit passcode will enable you to log in to the app. You can also log in to the app using a fingerprint or FaceID which will replace the need to enter a passcode.
When you register your kids you will be asked to create a PIN for their card. The PIN is the 4 digit number your kids will enter on a terminal when they are paying for something.
If your child has their own device then they will also set a passcode to access the app when they first log in.
In short:
Passcode = used to access the app
PIN = used to verify the card during a transaction
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