Greenlight Financial Technology is helping parents to raise financially smart kids through its debit card. The debit card helps kids to earn, save, spend wisely and invest. However, this is managed by the parents through an app. The truth is that when kids are financially equipped at an early age they are able to make better financial decisions as adults.
BENEFITS OF THE DEBIT CARD AND HOW IT IS FUNDED
The first step is for the parents to download the Greenlight app, then set chores for the kids with monetary perks, when the chore is done the kid gets rewarded. The kid can now spend the money using the debit card. The parent also get real time notification each time the kid use the debit card. This helps the parent to be aware of the kid’s spending and is able to set controls such as the maximum amount the kid can spend or if the kid can use the card on ATM.
Apart from the chores reward, the parent can also put funds into the kids account which becomes available on the card. The kid also earns a minimum of 1% on the account depending on the plan the kid is using. Additionally, the parents can also decide to pay interest on the kid’s account. Which means apart from the interest Greenlight pays the kid, the kid can get additional interest from the parents.
The parent can also send fund to the Allowance section of the kids account which the kid can either save, spend or invest. So the kid can get money through doing chores, through the money sent to the savings account or to the allowance. However, only the money in the savings account earns an interest. If the kid is a teen that works the kid can also have his paycheck sent to the account.
HOW DOES THE KID GET FINANCIALLY EQUIPPED?
The kid can decide to invest the money through the various investment opportunities available on the app or set saving goals and save towards the goal as the kid also have access to the app though the kids dashboard is different from that of the parents.
This helps the kid to learn how to save and invest at an early age. Most importantly, since the kid can be monitored through the app it helps the kid to develop a healthy spending habit. The kid also knowing that there is an interest paid on the savings account will motivate the kid to save more rather than spending.
HOW SECURED IS THE FUND IN THE ACCOUNT
FDIC and Mastercard secures the fund in account. FDIC insures the funds up to $250,000 while Mastercard protect the funds with it zero liability protection. Hence,there is nothing to worry about as the fund is save.
The card can also be turned off from the app when not in use. There is also fingerprint and face recognition option on the app, all these is for security purpose.
MORE BENEFITS OF HAVING THE DEBIT CARD
The debit card can be personalized with the photo of the kid on it. The card can be used internationally in 150+countries without foreign transaction fees.
Furthermore, there is no minimum or maximum age to have access to the debit card.