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

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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)

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Greenlight Kids Save 3 Times More than the Average U.S. Household

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As the average U.S. household debt continues to rise, Greenlight families are seeing a different trend. We’re thrilled to announce today that Greenlight kids have saved more than $1 million dollars using Greenlight Savings, The Educational Savings Account for Kids. Official story here. With the average U.S. household savings rate at 2.8%, Greenlight kids are saving a whopping 8.4% of their money on average. That’s triple the national average!  

The Educational Savings Account for Kids allows kids to see real growth in their savings account, how interest works over time, and the impact of spending versus saving, which helps them understand the importance of saving for the future. Not only that, but parents can set their own interest rate and pay the interest automatically within the child’s Greenlight Savings. The national average interest rate for bank savings accounts is 0.08%, making it difficult to educate kids on the value of savings. The average interest rate set by Greenlight parents is 19.84% enabling kids to see the benefits and importance of savings almost immediately.

Since April, Greenlight kids have more than quadrupled the amount of money in their savings accounts. We are proud to continue offering new features like the Educational Savings Account for Kids as an option that is convenient for families and offers flexibility for each family and each child’s unique needs. We are helping parents teach their kids to be smart about money and set them up for success financially, and are hopeful that impact can change the financial course for a new generation.

We’re on a mission to help parents raise financially-smart kids and are thrilled to see so many families using Greenlight Savings to teach their kids the importance of saving. But, we’re not done just yet. We have several new features that we’re excited to release in the near future. Stay tuned!

 

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Want your kids to make better food choices? Check out how one family is using Greenlight to help!

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Kids are tough. Shopping for foods they’ll eat, making lunches, getting them to do their homework, getting them up and out the door on time, and getting them to put down their tech and go outside can be challenging. One of the biggest challenges we as parents face when it comes to kids is getting them to eat healthily.

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