In an increasingly cashless world, teaching children financial literacy has never been more vital. Greenlight has emerged as a leading financial technology platform designed specifically to help parents raise “money-smart” kids through a combination of a debit card and a robust educational app.
Key Features: More Than Just a Debit Card
Greenlight offers a tiered subscription service that provides families with tools for spending, saving, earning, and even investing.
Customisable Spending & Controls: Each child (up to five per family) receives a Mastercard debit card. Parents can set specific spending limits for certain stores or categories, such as video games, and receive real-time notifications whenever the card is used or declined.
Automated Chores and Allowance: Parents can digitise the “cash scramble” by setting up recurring allowances or tying payments to the completion of specific chores tracked within the app.
High-Yield Savings & Rewards: Depending on the plan, kids can earn between 2% and 6% interest on their savings balances. The app also features a “Round Ups” tool, which saves spare change from transactions.
Investing for Kids: On higher-tier plans, children can research and buy fractional shares of over 4,000 stocks and ETFs with as little as $1, though every trade requires parental approval.
Safety and Protection: Greenlight provides a comprehensive safety suite, including identity theft protection, cell phone protection, and purchase protection. Premium tiers like Infinity add GPS location sharing, SOS alerts, and crash detection for teen drivers.
Financial Literacy Games: The Level Up™ in-app game uses videos and challenges to teach concepts like budgeting and credit in a gamified format.
Global Availability and International Use
While Greenlight is a powerful tool for travel, it is currently a U.S.-based service. To sign up, the primary account holder must have a U.S. residential address and a U.S. phone number.
Once an account is established, the card can be used internationally in most countries including Pakistan where Mastercard is accepted.
A major benefit is that Greenlight does not charge international or foreign transaction fees.
However, the card is not supported in several countries, including Afghanistan, Belarus, Cuba, Iran, Russia, Turkey, and Ukraine, among others.
Benefits and Shortcomings
Benefits:
Comprehensive Education: It offers one of the most robust financial literacy platforms for children, covering everything from basic saving to advanced investing.
Value for Large Families: Most plans cover up to five children for a single monthly fee, making it more cost-effective than competitors for larger households.
Peace of Mind: Extensive parental controls and safety features like driving alerts provide security beyond just money management.
Modern Compatibility: The cards work with Apple Pay, Google Pay, and Samsung Pay.
Shortcomings:
Monthly Fees: Unlike some traditional bank accounts, Greenlight requires a monthly subscription fee starting at $5.99, which may be a drawback for those seeking a free option.
Reward Restrictions: To earn savings rewards, parents must fund the account via a linked bank account rather than a debit card.
Feature Gating: Many of the most attractive features, such as investing and safety protections, are only available on the higher-priced subscription tiers.
How to Get a Greenlight Card
Starting with Greenlight involves a simple digital registration process:
Sign Up: Visit the Greenlight website or download the app to register as the Primary Accountholder.
Add Family Members: You can add up to five children and, on certain plans, up to two older adults.
Verify Identity: You must provide your name, address, date of birth, and Social Security Number (SSN) for legal verification.
Fund the Wallet: Link a funding source (bank account or debit card) to your Greenlight Wallet to cover the first load and future subscription fees.
Receive Cards: Physical cards typically arrive via mail within 7 to 10 business days.
How to Cancel a Greenlight Card
Greenlight does not have long-term contracts, and accounts can be closed at any time without a fee.
To cancel via the app, the Primary Accountholder should go to the Settings gear, tap “Account,” and select “Close account”. Alternatively, users can call their support line at 888-483-2645.
Upon closure, all investments are sold at market value, and any remaining balance is refunded to the linked bank account within 5 to 7 business days. Access to the app and cards is terminated immediately.
