Greenlight Savings: The new way to teach your kids the value of saving money

The money conversation. It can be one of the hardest conversations we have with our kids (let’s be real: it can be one of the hardest conversations we have with anyone). But it’s also one of the most important conversations we have to have as parents.

Kids aren’t born understanding money. Ask any parent and they’ll tell you a hilarious story about the time their kid thought banks just gave money away or that cashiers did nothing more than approve your selections. It’s cute, but — as much as we want to preserve our kids’ innocence — it’s unsustainable and potentially dangerous.

Understanding money — how it can grow, how it can be used, how it can disappear — is important to every child’s development. There are tons of tricks you can use to get them to learn, but whether or not they’re effective is up for debate. At Greenlight, we’re thinking beyond giving your kids a jar and asking them to count their pennies; we’re thinking about a real way to teach kids about money.

That’s why we’ve developed Greenlight Savings. It’s an educational tool that allows kids to earn interest and save their money. Your kids will be able to watch their money fluctuate as they earn interest, and spend it (with your permission) helping them understand how saving money can pay off in the long run.

Greenlight Savings isn’t a typical savings account. It’s a parent-managed tool that teaches kids the value of saving money, but also how interest — and patience — pays off. Instead of earning the tiny amounts of interest typical savings accounts offer, parents can set and pay higher interest rates so their kids can actually see their money grow.

Here’s how it works:

1) From your Greenlight Parent’s Dashboard, you can add money to the Savings category on your child’s Greenlight card. It works the same way as adding cash to any Greenlight category, and we’ve already added it as an option so you’re ready to go.
2) Once you’ve added money, you’ll be able to set the interest rate. Pick a rate you’re comfortable with, since you’ll be paying that interest.
3) We automate the process. Your child’s Greenlight Savings will earn interest once a month and it will be drawn from your Greenlight Parent’s Wallet automatically.
4) You can add or move money anytime, right from your Parent’s Dashboard just as you would for any other category on their Greenlight card. And your kids can move their money too: they can put money in whenever they want, but need your approval to move it out.
5) The savings grow, and your kids start to understand how saving can help them set and meet spending goals over the long term.

Since kids don’t typically deal in large sums of money, regular savings accounts with small interest rates don’t show real growth. But since you can set higher interest rates, Greenlight Savings shows kids how interest works over time, so they can plan how to use their money down the line. It also teaches them the value of patience and planning: while they may want to buy the latest online game or must-have toy immediately, they’ll come to understand that by waiting a bit, they’ll have even more money available – for that toy and maybe a snack or two, also.

And since it’s all parent-controlled, you’ll have oversight into what your kids are doing so that you’re always prepared for that dreaded money conversation. Only now, you can rest assured that it will be pleasant, meaningful, and productive.

Equip your kids for financial success today with Greenlight Savings. If you’re already a Greenlight customer, you can get started with Greenlight Savings at no extra cost. And if you’re not, signing up is easy. Simply visit us at www.greenlightcard.com and tap download to get our app and begin registration.

 

(photo courtesy © GotCredit cc2.0)

Greenlight Raises $54 Million to Empower Parents to Raise Financially-Smart Kids

Today, we announced $54 million in Series B funding. We’re thrilled to double down on our roadmap and reach even more families on our mission to empower parents to raise a generation of financially-smart kids. Full press release below.

Greenlight Raises $54 Million to Empower Parents to Raise Financially-Smart Kids

ATLANTA, September 16, 2019 – Greenlight Financial Technology, Inc. (“Greenlight®”), the fintech company on a mission to empower parents to raise a generation of financially-smart kids, announced today it has raised $54 million in Series B funding led by Drive Capital with participation from JPMorgan Chase and Wells Fargo. Existing investors TTV Capital, Live Oak Bank and Relay Ventures also participated. The investment will fuel continued growth and accelerate the company’s development roadmap.

“Greenlight has built an incredible platform that makes it convenient and safe for parents and kids to manage their money. We’re proud to support their growth and help them on their mission,” said Chris Olsen, Partner at Drive Capital who has joined the Greenlight Board. “What attracted us to Greenlight is the scarcity of tech platforms empowering consumers to be more financially successful.”

Greenlight offers a debit card for kids that parents manage through the Greenlight app using flexible parental controls. The company has experienced rapid growth since launching its product in 2017, helping more than half-a-million parents and kids manage daily family finances. 

The Greenlight product allows parents to choose the exact stores where their children can spend, manage chores and allowances, set parent-paid interest rates on savings and more. Kids monitor balances, create saving goals and learn to make real world trade-off decisions.

“At Wells Fargo, financial literacy and helping our clients succeed is a part of our core values,” said C. Thomas Richardson, head of Strategic Partnership Investing at Wells Fargo. “Greenlight offers parents an opportunity to build that core competency of financial literacy in their child’s formative years, through its innovative, interactive and fully digitized product offering. We are impressed by Greenlight’s rapid growth, and we are excited to help fuel the next phase of its development.”

The Series B funding will accelerate Greenlight’s mission-driven roadmap to weave more educational layers into the app experience along with investing, to get kids familiar with the tools to build long-term wealth.

“We’re thrilled to partner with our Series B investors to bring Greenlight to millions of new families and help parents prepare their children for healthy financial futures,” said Tim Sheehan, CEO and Co-Founder of Greenlight. “In the near future, I hope that this generation of kids grow up to spend wisely, learn the importance of saving and feel confident investing to build wealth over the long-term.”

For more information on Greenlight, please visit greenlightcard.com, or follow Greenlight on Facebook and Instagram.

###

About Greenlight:

Founded in 2014, Greenlight Financial Technology is an Atlanta-based fintech company that’s committed to empowering parents to raise financially-smart kids. Its groundbreaking family finance product, Greenlight®, is a debit card for kids that parents manage by app using flexible parental controls. Patent-pending technology enables parents to choose the exact stores where their children can spend, manage chores, set parent-paid interest rates on savings and more. Kids monitor balances, create saving goals and learn to make real world trade-off decisions.

The Greenlight Card is issued by Community Federal Savings Bank, member FDIC, pursuant to license by MasterCard International. For more information, please visit: greenlightcard.com.

Can Video Games Teach Smart Money Skills?

XBOX, PlayStation, Nintendo, Steam. If you’re a parent, you’ve probably heard your kids talking about these video game consoles and platforms along with their favorite games like Madden, Fortnite, Mario Kart and Minecraft. With 75% of American households having at least one gamer in the house, we’re not surprised by the wave of Greenlight families sharing their gaming experiences with us. 

Whether your kids prefer mobile gaming or they kick it old school with Nintendo, video games can quickly become a favorite pastime and a recurring cost. Americans spent $43 billion on video games in 2018 and the numbers keep growing, which is why we think video games can be leveraged as an excellent tool for parents to motivate their kids to make smart money decisions. 

Knowledge is power 

With so many different consoles and video game franchises on the market, teaching young gamers to do their research develops smart habits that can apply to future large purchases. Important questions to consider include: 

  • How much does each gaming console and individual game cost?
  • What are the differences between each video game platform and what makes them special? 
  • Which games interest them the most? Which platform is the right fit? 

In Greenlight mom Natalie Jensen Young’s house, her three kids (ages 14, 16, 18) make the best decisions for their individual gaming interests.

“My kids each have different gaming preferences. One loves his Switch and the Xbox. One loves his PS4 and Xbox. One loves her Wii U. They all love the 3DS. They have all saved up for these machines, doing their research, and finding out which games are on which platforms. They get a set amount of money each week for jobs completed around the house — they save up for the games they want.” 

It’s never too early to study the fine print 

Since video games often feature in-game purchases for accessories or level boosts, it’s critical to teach kids vigilance when it comes to downloading games with monthly fees. By linking a Greenlight card to these in-game add-ons, kids gain visibility into miscellaneous charges that are often associated with mobile purchasing while parents protect their own credit cards from these charges. 

“My kids have the cards attached to their XBOX, PC and phone accounts. It’s so much better than having my card attached and them accidentally buying stuff. Plus, it taught them to be careful of things like recurring charges or hidden fees. They are much more careful of what and how they buy now,” shared Greenlight mom Alysson Browning. 

Screenshot of child's Greenlight balances, including an Online Gaming greenlight.

Level up with a video games budget

Due to the fast pace of the gaming industry, new trends can keep prices steep. Use these updates as an opportunity to talk about a magical thing called budgeting. Discuss how your child can’t get the latest game in their favorite franchise without the proper savings or budget.

With Greenlight, parents have the ability to limit how much kids spend on games, which helps eager gamers from going overboard.

Ohio mom Heather Renee Gilbert shared the secret to her game-loving son’s success.

“My son uses his Greenlight card for Xbox games. I created an Online Gaming greenlight for him where I put money specifically for that purpose into it. He earns that money with grades at school and his behavior. Having the greenlight specific for gaming is amazing because if I didn’t set a limit on what he spent on games, he would blow through all the money I gave him on just that. Now he knows exactly what he can spend on his games. No game money in the greenlight means he can’t spend more than what he has.”

Screenshot of Greenlight's spend controls, where parent can manage how much children can spend in certain categories.

Talk that gaming and finance talk with your kids

Raising financially-smart kids sometimes means getting crafty with teaching opportunities. The more relevant the topic, the more engaging the conversation can be. If your kids are into video games, why not start money talks around one of their favorite things?

Greenlight can help

Sign up your family for Greenlight today to explore your own lessons in earning, spending, saving and giving.