How Greenlight is revolutionizing Financial Education for Adolescents

Greenlight is on a mission to shine a light on the world of money for kids and parents.

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What is Greenlight?

Greenlight is a standard MasterCard debit card. It works just like any other card under the surface, it can be used anywhere in person and online, and both parents and teens can deposit money onto the card. However, this innovation has some sneaky features that make them different than any other MasterCard.

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Parental Controls

Greenlight lets parents separate and divide their kid’s money into two categories. The first category allows your kid to use their card anywhere, while the second category is restricted to specific retailers only that the parents can choose (e.g., Starbucks). This allows the child to buy whatever he wants with the money he deposits from his earnings and have the parent’s money act as an emergency fund. If a child tries to spend money at a store the parents have not approved, the transaction will be declined unless the child has sufficient funds from his own category. Parental controls aren’t new in this industry, however, they are super hard to use and set up, while Greenlight makes it super easy to use.

Interest

Most online banks pay very low-interest rates, usually under 1%. Even online banks such as Ally only offer 1.50% APY. With Greenlight, parents can set the interest rate of their choosing on their child’s account. Although the interest comes from their account, it’s still an excellent way to teach their kids how interest and saving money work.

Other Features

Greenlight has a great notification system. Parents can receive alerts whenever the card is being used. The alert will show where the card was used and the amount charged. Parents can also receive alerts when the card is declined for whatever reason. Greenlight also offers the standard refer-a-friend program that most apps nowadays provide. Whenever you refer a family to Greenlight, both families will receive $10. There is also no minimum age to use a Greenlight card, although one must be at least 13 years old to make an account independently. Lastly, Greenlight also works with Apple and Google pay which in turn makes the card compatible with Uber and other rideshare services.

My Analysis

Greenlight is making it easier than ever before for parent to teach their children about finance. Everything from saving and spending to interest rates can all be taught through Greenlight, which in my opinion, is worth the $4.99 monthly cost. When it comes to money, Greenlight has it all figured out with its state-of-the-art parental control system that makes it super easy to keep track of your child’s spending and put limits when needed. With a $2.3 Billion evaluation, investors know this new innovative FinTech company is a game changer as well.