Teaching our children how to properly manage their finances while young can set them up for financial success in the future. It can also provide parents with peace of mind knowing their children will be able to make informed decisions with their money as adults. The trick to teaching children how to spend their money responsibly is to find a tool that they will enjoy using regularly and one that provides rewards to keep them engaged.
The financial experts at Capital Credit Union recommend using the Greenlight card for kids to help children of all ages learn the ins and outs of budgeting, investing, and smart spending. Children receive a debit card and can download the Greenlight app on their phones or tablets, and parents will have the ability to use the parental controls on their own devices to help ensure their kids spend safely.
What Is the Difference Between a Greenlight Card and a Traditional Debit Card?
You may be wondering if using a Greenlight card for kids is better than a traditional debit card. The short answer is yes; using a Greenlight card means more than just being able to access funds and make deposits. Greenlight offers safety features, education, and the option to increase responsibilities as kids grow their financial muscles over time.
With a Greenlight debit card, your child can only spend as much as you put into their account so there is no risk of overspending. Parents can set spending limits and block unsafe spending categories with a few clicks on their own Greenlight app. The Greenlight app also includes access to interactive games specifically designed to help your kids grow their financial literacy. Most debit cards are little more than a card connected to a bank account.
Greenlight Features and Benefits
The Greenlight card for kids can be a great investment in your children’s future financial success. Greenlight cards are issued by Community Federal Savings Bank and are FDIC-insured up to $250,000, providing financial protection similar to opening a savings or checking account. They also come with all the bells and whistles listed below:
- Create healthy spending and saving habits using Greenlight’s cash back and savings features: Kids can set savings goals, and the app will celebrate with them as they reach their goals. Not only will they earn interest on their savings, but they can use the Round Ups feature to send change from their transactions right to their savings accounts. Parents can pay a percentage on their kids’ savings as well, up to 100 percent, to help their children grow their savings accounts faster.
- Teach responsibility with Greenlight chores and allowance features: Parents can assign chores to their kids on the Greenlight app and reward them for completing the tasks by paying them for a job well done. Parents can also pay an allowance to their children on a set schedule and even attach their allowance to assigned chores if they choose. As your child grows into a teen and starts working, kids can set up direct deposits to their Greenlight account.
- Use the parental controls for peace of mind: Parents can set spending limits, block unsafe spending categories, and even turn off the debit card for their child’s safety when necessary. With the Infinity subscription plan, parents will also have access to location sharing, SOS alerts, and more.
- Learn to invest together: Kids can learn how to start investing with just $1 in the Level Up financial literacy game on the Greenlight app. When they feel ready, kids can start investing and building their stock portfolio early with parental approval.
Greenlight Offers Kids an In-App Interactive Financial Literacy Game
Among the many reasons why the Greenlight card for kids is such a great addition to your child’s financial education is the included interactive gaming platform called Level Up, which is available on the Greenlight app for all subscription levels. Using gamification to pique children’s interest through a fun interactive game that provides rewards. Meanwhile, they’ll be learning about investing, saving, and budgeting their money. It’s a great way to teach children of all ages how to be fiscally responsible while having fun.
Greenlight for TeensThe Greenlight debit card is great for kids of all ages. Teaching children at an early age how to be responsible with the Greenlight debit card is a great start, but what happens as your child grows into a teen? Rest assured, the Greenlight debit card grows with your children.
With features and benefits for all ages, your teen will find comfort in the familiar app features they have grown accustomed to, as well as enjoy the ability to have their after-school or summer jobs direct deposit their paychecks into their Greenlight account. With the higher tier Infinity subscription plan, parents can rest easier with the added benefit of location sharing and crash detection with SOS alerts as their teen starts driving and exploring the world on their own.
Greenlight Debit Card Subscription Plans
The Greenlight debit card for kids is set up as a tiered subscription service, so you have control over what features you want to gain access to.
- Greenlight Core: With the Core subscription, you will have the ability to provide Greenlight debit cards to up to five kids, use the chores, jobs, and allowance features, and kids will have access to the Level Up financial literacy game. Kids can also earn up to 2 percent on savings.
- Greenlight Max: With the Greenlight Max subscription plan, you get all the benefits of Core, but savings earnings increase to 3 percent. Plus, you add in the ability to earn 1 percent cashback on spending. The plan also includes investing for kids, as well as phone, purchase, and identity protection.
- Greenlight Infinity: With Greenlight Infinity, you get access to all the benefits of Greenlight Core and Max, plus savings earnings increase to 5 percent. You also get family location sharing, SOS alerts, driving reports, alerts, and crash detection included as well.
If you are interested in discussing the benefits of opening a Greenlight debit card for your child, contact Capital Credit Union today!