12/09/2023
TEACHING KIDS MONEY SKILLS: A REVIEW OF THE GREENLIGHT APP
Greenlight is a fintech company that focuses on providing financial tools and education for families with children. They offer a unique range of prepaid debit cards for kids and teenagers, designed to promote responsible money management and financial literacy.
The purpose of this review is to provide an in-depth analysis of Greenlight credit cards. We will assess their card options, benefits, fees, application process, user experience, and more to help you make an informed decision about whether Greenlight is the right choice for your family's financial needs.
Types of Greenlight Cards
Greenlight offers various card types, including Greenlight Junior, Greenlight + Invest, and Greenlight Max. Each card is tailored to different age groups and financial needs, providing age-appropriate features and functionalities.
To help you understand which card suits your family's requirements, we will explore the features and benefits of each card type.
- Greenlight Debit Card:
The Greenlight Debit Card is designed for kids and teens, typically ranging from ages 6 to 18. Parents can open a Greenlight account for their child and issue them a debit card linked to the account. This card allows kids to spend money within the limits set by parents while also learning financial responsibility.
- Greenlight Max Debit Card:
Greenlight Max is an upgraded version of the standard Greenlight card. It's designed for older teens, often between ages 13 to 18, who are ready to take on more financial responsibility. In addition to spending controls, it offers investment features, allowing teens to explore the basics of investing with parental supervision.
Cardholder Benefits
Understanding the security measures in place is crucial for any financial product. Greenlight prioritizes the security of its cardholders' accounts and transactions. Let us now explore the benefits of having a Greenlight card.
- Parental Controls: Parents have robust control over their child's spending, reducing the risk of unauthorized or excessive purchases.
- Real-time Monitoring: Parents receive instant notifications for every transaction, allowing them to spot any suspicious activity promptly.
- FDIC Insured: Greenlight accounts are FDIC insured up to $250,000, providing an additional layer of financial security.
- PIN Protection: The cards have PIN protection for added security during in-person transactions and ATM withdrawals.
- Lost Card Replacement: In case a card is lost or stolen, Greenlight provides a quick and straightforward process for card replacement.
- Savings Goals: Parents can help their children set savings goals and allocate money toward these goals, teaching them about financial planning.
- Financial Literacy: Greenlight offers educational content on money management, helping children learn about budgeting, saving, and investing.
- Card Customization: Kids can personalize their card with a custom design, fostering a sense of ownership.
- Investment Learning: With parental supervision, teens can explore the world of investing. They can invest in a variety of stocks and ETFs, learning valuable financial skills.
- Stocks as Gifts: Family members can contribute to a teen's investments by gifting them stocks, helping them build wealth over time.
- Higher Spending Limits: Teens are given more financial autonomy with higher spending limits, preparing them for future financial independence.
- ATM Access: Greenlight Max allows ATM withdrawals, offering greater flexibility when accessing cash.
- Interest on Savings: The Max card provides a 1% annual percentage yield (APY) on the savings account balance, helping teens earn some interest on their savings.
- Cashback: Some Greenlight cards provide cash back rewards for specific types of purchases, such as groceries or dining. The cashback percentage may vary.
Fees and Costs
Greenlight typically charges the following fees:
- Monthly Fee: Greenlight may charge a monthly fee, usually around $4.99 per family account, covering all associated children's cards.
- ATM Fees: While Greenlight allows ATM withdrawals, there may be fees associated with using ATMs outside of their network.
- Foreign Transaction Fees: Greenlight may charge foreign transaction fees, which are common among prepaid cards.
User Experience
Greenlight offers a user-friendly and intuitive experience, both for parents and kids. The mobile app, which serves as the primary interface, is well-designed and easy to navigate. Some key aspects of the Greenlight user experience includes:
- Notifications: Both parents and kids receive notifications for transactions, ensuring transparency and accountability. Parents are promptly alerted to any unusual spending activity.
- Customer Support: Greenlight provides responsive customer support channels, including chat support within the app, to assist users with any inquiries or issues.
- Accessibility: The app is accessible on various devices, including smartphones and tablets, making it convenient for families to manage their finances on the go.
Greenlight vs. Competitors
Greenlight faces competition from various financial products targeting families and young users, including:
- FamZoo: FamZoo offers prepaid cards with family-oriented financial tools and controls. It emphasizes budgeting, chores, and allowances.
- BusyKid: BusyKid focuses on chore-based allowances, allowing kids to earn money through household tasks and allocate it to spending, saving, and investing.
- Current: Current offers a mobile banking platform with customizable debit cards for teens. It provides parental controls and budgeting features.
- Chime: Chime is a neobank that offers a spending account for teens with parental controls. It doesn't charge monthly fees or overdraft fees.
Why Choose Greenlight?
Greenlight stands out for several reasons:
- Comprehensive Financial Education: Greenlight places a strong emphasis on financial literacy. It provides educational content and tools to teach kids about money management, setting it apart from some competitors.
- Robust Parental Controls: Greenlight offers extensive parental controls, including spending limits, real-time monitoring, and the ability to allocate funds for specific purposes. These controls give parents peace of mind.
- Variety of Card Options: Greenlight caters to different age groups with various card types, allowing families to choose the one that best suits their child's needs and development stage.
- Investment Learning (Greenlight Max): Greenlight Max goes beyond spending controls by offering investment opportunities for teens, helping them learn about long-term financial planning.
- Security Measures: Greenlight prioritizes account security and offers features like real-time transaction alerts and FDIC insurance for account funds.
While Greenlight may have fees that some competitors don't, it balances this with a comprehensive set of tools and resources for financial education and control. Families seeking a well-rounded solution for teaching financial responsibility, with a strong focus on education and parental oversight, may find Greenlight to be an excellent choice.
Final Thoughts and Recommendations
Greenlight is a robust financial tool for families. It excels in providing comprehensive parental controls and valuable financial education resources for children. It offers a variety of card options to suit different age groups and provides an opportunity for teens to learn about investing with Greenlight Max.
However, it's important to consider the fees in comparison to the features you'll use. While Greenlight's fees are reasonable, some competitors offer fee-free alternatives. Assess your child's financial development stage and your specific needs before deciding, but Greenlight's emphasis on education and parental involvement makes it a valuable choice for many families.
