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Discover How the Greenlight Debit Card is Revolutionizing the Way Families Teach Their Kids About Money Management

Teaching Your Kids About Money

As a financial advisor and certified money nerd, I have always known how important it is to teach kids about money. After all, finances are a big part of growing up, and our children will eventually be on their own. When we take the time to teach them about paying bills, budgeting, and saving for the future, we are helping set them up for success and teaching them basic life skills at the same time.

Fortunately, technology has made this part of parenting considerably easier! When I first started teaching my kids about budgeting and managing money, we were using the envelope system inspired by Dave Ramsey and Rachel Cruze. My wife and I had a chore sheet with tasks our kids would have to complete each week, and they would get paid their "allowance" when they did all the work. From there, our kids kept their money in different envelopes – envelopes for spending, saving, giving, and specific goals.

The Envelope System With 4 Kids

This worked pretty well for a while, but my kid’s financial lives have gotten more complicated as they have grown up. For example, my oldest son is selling things on eBay, and I really wanted him to have his own eBay account instead of using mine. And obviously, cash in an envelope won’t help him run his eBay business at all. Not only that, but all four of our children are on our payroll, so they all have a tidy sum of money in their own checking and savings accounts already. Unfortunately, the bank we have all been using doesn’t offer a way for kids under 16 to access their money with their own debit card.

About Greenlight

Greenlight was originally founded in 2014 as a fintech app for kids, but the product has improved quite a bit since its initial launch. First of all, parents should know that Greenlight is a lot more than a debit card for kids. This debit card also works in conjunction with a mobile app that is equally accessible by parents running the account.

How Does Greenlight Work?

With a Greenlight debit card, you can:

• Set up chore charts for your kids
• Help your kids set up savings goals through the app
• Get notified each time your child makes a purchase
• Automatically transfer money (i.e. their allowance) to kids through the app
• Decide which stores your kids are allowed to spend money at
• Let your kids "save their change" by rounding up their purchases and diverting it to savings (similar to the Acorns app)
• Decide whether kids can access cash at an ATM

Greenlight Plans and Costs

While Greenlight offers a ton of tools that can help kids learn more about their finances, this product is far from free. Ultimately, this is one of the major downsides of Greenlight. After all, there are other debit cards for kids and teens that don’t have a monthly fee, although they have a lot fewer features overall.

Here’s a rundown of what you can expect to pay for a Greenlight plan depending on the tier of service you sign up for:

• Greenlight Core: The basic Greenlight plan lets parents get a debit card for up to five kids. This plan offers basic tools for parents, like the ability to set up chore charts, send their kids money, and be notified when their kids make a purchase. Kids in this tier of the program will also earn 1% in rewards on their savings.
• Greenlight + Invest: The Greenlight + Invest plan costs slightly more than the basic plan, yet families get the added benefit of investing tools. This feature within the Greenlight app lets kids purchase fractional shares of their favorite stocks, and they can start investing with as little as $1 with no trading fees. Parents also get to approve every trade right from the app. Kids in this tier also earn 2% in cash back on their savings.
• Greenlight Max: Greenlight Max is the top-tier plan, and it includes all the benefits of the basic plan plus the investing features. On top of that, parents get benefits like priority customer support and kids also get 1% back on purchases made with their debit card and 5% in cash back on their savings. Other features like family location sharing, SOS alerts, and crash detection are included.

How to Sign Up for Greenlight

To sign up for a Greenlight account for your family, you’ll need to enter your phone number and be willing to download and use the mobile app yourself. Information you need to get started includes:

• Your child’s/children’s name(s)
• Your legal first and last name
• Your Social Security number (SSN)
• A valid debit card or bank account

Whom Is Greenlight Best For?

I really like Greenlight despite its limitations. Before parents sign up, however, they need to read over all the fine print and purchase and withdrawal rules so they know what they’re dealing with. I also recommend playing around with the app and learning how it works so kids aren’t left in a situation where they can’t access their money when they need it.

With all this being said, Greenlight is best for:

• Parents who want to oversee their kid’s chores, allowances, purchases, and savings in one place
• Families who want their kids to have their own debit card for safety reasons
• Parents who want a way to teach their kids how to manage their money early in life
• Families who want to get their kids into investing early in life
• Anyone who wants to be able to send their kids or teens money instantly through a mobile app
• Parents who want to be notified each time their kid makes a purchase

Conclusion

Overall, Greenlight has a pretty intriguing value proposition. The program costs as little as $5 per month, and you get access to a ton of valuable tracking and goal-setting tools as well as debit cards for up to five kids. If you want to pay a little more, you can also ensure your kid is earning cash back on their purchases. This app even makes it possible for your kid to learn about investing through fractional shares with your oversight, which is pretty cool if you ask me.

FAQs

Q: Is Greenlight a good option for teaching kids about money?
A: Yes, Greenlight is a great option for teaching kids about money. The app offers a variety of tools and features that can help kids learn how to manage their finances and make smart money decisions.

Q: Is Greenlight safe for kids?
A: Yes, Greenlight is a safe and secure option for kids. The app uses bank-level security and encryption to protect your child’s financial information and transactions.

Q: Can I set limits on my child’s spending with Greenlight?
A: Yes, you can set limits on your child’s spending with Greenlight. The app allows you to set spending limits and restrictions on your child’s debit card, so you can control how much money they can spend and where they can spend it.

Q: Can I get cash back on my child’s purchases with Greenlight?
A: Yes, you can earn cash back on your child’s purchases with Greenlight. The app offers a rewards program that allows you to earn cash back on your child’s purchases, which can be deposited into their account.

Q: Can I use Greenlight to teach my child about investing?
A: Yes, Greenlight offers a feature that allows you to teach your child about investing. The app allows you to purchase fractional shares of your child’s favorite stocks, and you can start investing with as little as $1 with no trading fees.

Author: www.goodfinancialcents.com

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