Are you a parent? Wouldn’t you like a simple way to teach your children all about money including saving, investing and budgeting effectively? It is very important to teach your kids about money. This will ensure they build good financial habits that will prepare them well for later in life. When it comes to financial education for children, one of the most effective methods is by using Greenlight. In this post we will look at what Greenlight is and how it offers some of the best financial education for children.
What Is Greenlight?
Greenlight is a financial technology company that aims to educate both children and their parents about money through dedicated tools. They offer a special debit card for children that is funded and controlled by their parents via an app. Children learn about earning, spending, saving and investing whilst parents receive the tools to mange their child’s money. It gives children the responsibility and knowledge of effectively managing their money. At the same time it allows parents to monitor and keep fully in control. We’ll explain how it works below.
Greenlight is the app that empowers children to learn about finance. If you are an adult wanting to take back control of your own finances then take a look at this blog post; Effective Money Management With Free App
How Greenlight Works
Through Greenlight your child receives a debit card they can use for spending. This differs to a normal debit card – it is a prepaid card where parents are in full control. Up to 5 children can be registered on one account so you can easily monitor your entire family finances. There is also no minimum age for registering a child.
The app has different features for both parents and children.
From the app parents can;
- Deposit money onto the card
- Real time transaction notifications so you can see exactly what they spend and where
- Set store-specific spend controls
- Balance tracking
- ATM controls – choose whether to allow kids to withdraw at ATMs and set limits
- Switch card on or off
- Set up automated allowance deposits
- Pay your own interest on your child’s savings
- Chore management – tie chore lists to perks in the app!
For children they can;
- Set personal savings goals
- Up to 1% cashback on purchases which can be added to savings
- Earn up to 2% interest on savings
- Teens can add their paychecks directly into their account
- Round-ups to automatically add spare change to savings
- Educational tools
In addition to the debit card and spending and saving, Greenlight also offers an investing feature. This offers real stocks that children can invest their money in. Once again the parent is in full control whilst the child gets to research stocks and learn about the value of compound growth.
- Parents have to approve each trade in the app
- Fractional shares can be bought
- Minimum investment of only $1
- No trading fees
There are 3 different Greenlight plans available starting at just $4.99 per month for the standard plan. This plan offers debit cards for up to five kids, educational app, financial tools, parental controls and 2% savings reward.
In addition to the features above the Greenlight+ Invest plan also offers an investment account. This plan costs $7.98 per month and is a great option if you wish your child to learn about the value of investing.
The third plan is called Greenlight Max and costs $9.98 per month. This plan offers cashback, a black debit card, priority customer support, identity theft protection, cell phone protection and purchase protection. All this is in addition to all of the other features offered in the other 2 plans.
There are also customisation options so your child can personalise their own debit card with a photo.
You can also earn $30 for each friend you refer. Refer a couple of people and the service effectively pays for itself.
Is Greenlight The Best Financial Education For Children?
Financial teachings in schools are pretty poor. The best way people learn something is to get hands on experience. By giving your child their own debit card you are showing them you are placing a great deal of trust in them. And when somebody is shown trust, even a child, they usually repay you by acting responsibly. Allowing them to see their finances, they can see the benefits of saving and investing, giving them better financial knowledge along the way. This will provide the foundations for good money management in their adult life. And as a parent you will never have to worry as you still retain overall control. From funding the card to setting spending limits, you will have peace of mind.