It’s The Most Wonderful Time of The Year to Save and Budget

The hustle and bustle of the holiday season is upon us! There’s no better time than now to take up the topic of budgeting and saving with the family. The National Retail Federation forecasts that holiday retail sales will be up 4.2% over 2018, for a total of $730.7 billion spent on gifts for family and friends! Before your kids make their holiday gift lists, start conversations on how to set budgets and save up.

Bring on the budget

Setting a clear budget for the holidays and sticking to it will show your kids they don’t have to go into debt to have a holly jolly holiday season. The average American took on more than $1,000 in debt during the holiday season in 2018, so showing kids the importance of setting a budget, planning for the budget (calculating how much everything will cost for the season and how much they will need to save) and how to stay within the budget will serve them in the future. 

Make a list (check it twice)

Lists aren’t just for Santa Claus to find out who’s naughty or nice during the holiday season — they’re the perfect tool to help stay on budget when it comes to spending.

Before heading out to a store or logging onto Amazon, ask your kids to make a list of who they want to buy presents for and if they know what they plan to get each person (if so, have them add their gift idea to the list). To make sure your child doesn’t run through their holiday budget, ask them to look into the price of what they want to buy before they plan to shop for it.

Having a list to work through will keep shopping focused, both in-store or online, if you’re out shopping on Black Friday or going after deals on Cyber Monday, teach your kids focus is key.

Set a savings goal 

Within the Greenlight app, encourage your kids to set up Saving Goals, specifically for holiday. Perhaps they name it their Christmas Fund or their Gift Goals. Here’s how to set up a Saving Goal: 

  1.     Navigate to your “Save” tab.
  2.     Tap “Add a Savings Goal.”
  3.     Enter a title or description of what you will be saving for.
  4.     Enter a goal amount.
  5.     Tap “Add Savings Goal” to complete the set-up process.

Parents, remember that your kids need permission to spend their savings. As they move money out of their Saving Goals into a spending greenlight, they’ll send you a request. Be on the lookout for when it’s time for them to cross holiday shopping off their to-do list.

The season for deals and shopping steals 

After your kids have saved to meet their holiday Saving Goals, it’s important to talk them through smart spending. The holidays are a great time to teach bargain shopping (especially with a budget in mind). Here are the three shopping days you and your family should consider for deals and steals: 

  • Black Friday: The day after Thanksgiving is considered to be one of the busiest retail days of the year and it’s known for its big sales, discounted prices and often crazy in-store crowds. Black Friday is a good day to teach your kids how to navigate in-store experiences and what it’s like to shop with specific items in mind. It’s never too early to start shopping Black Friday deals, you can check out a comprehensive guide here.
  • Small Business Saturday: The Saturday after Thanksgiving (also known as Shop Small Saturday) is an opportunity to teach your kids about supporting locally owned businesses and small, unique brick and mortars in your neighborhood.
  • Cyber Monday: The Monday after Thanksgiving, known as Cyber Monday, is the hottest day for online retailers to offer some of their best deals for the season. Can’t make it to the mall on Black Friday? Consider shopping Cyber Monday deals from the comfort of your own home. 

Talking to kids about sales, coupons, discounts and the benefits of when to shop in-person and online can help create savvy shoppers for life. 

A little thoughtfulness won’t break the bank 

Gift giving often becomes a major focus during the holiday season, but not all gifts have to come from a store. Some of the most thoughtful gifts come straight from the heart. When your kids are making their holiday gift giving lists, make sure to have the conversation that small, thoughtful gifts can go a long way. 

Cookies, DIY ornaments, arts and crafts projects, handwritten cards and random acts of kindness to those we know and love won’t break the bank. And the warm and fuzzy feeling they bring about is what the holiday season is all about after all.

Add Parent-Paid Interest 

Parents, to encourage saving, consider adding Parent-Paid Interest within the Greenlight app. 

Greenlight offers parents the opportunity to set and pay interest rates on savings to demonstrate the magic of compound interest. Here’s how to set up parent-paid interest!

Get ahead for the holidays with Greenlight

Join Greenlight today to encourage wise saving and smart spending ahead of the winter holidays. Set up a holiday specific savings goal today!

How To Talk Money Management With Your Kids

The money talk — not as scary as the birds and bees, but still a lot to think about. We get it and so do other parents. In fact, 49% of parents say they’re not sure how to explain money to their child.[1] Enter: Spring Break. It’s the perfect time to open the conversation, starting with budgeting. 

EXPLAIN WHY BUDGETING IS IMPORTANT

If you’re like 67%[2] of Americans, you keep a budget — nice! Time to get your kids on board. But how? You could start off by explaining why a budget matters, because chances are they’ll ask.

Conversation Starter: “When you make a budget, you know just what you’re spending, and how much you need to save for things you want, like those AirPods.”

EXPLAIN COMMON BUDGETING TERMS

Fixed Expenses and Variable Expenses — ring a bell? Maybe, maybe not. Either way, they’re important words to teach your kids about budgeting. Break it down into Spring Break terms, and they’ll get it.

Conversation Starter: “A Fixed Expense is one that doesn’t change. Like, our plane ticket. A variable Expense is one that does change. Like, meals. It can go up or down, depending on where we eat.”

EXPLAIN WHY SAVING MONEY IS IMPORTANT

Budgeting for Spring Break is one thing — saving for it is another. Instead of simply handing them money (and hoping they stash it away), show them the importance of earning and saving.

Conversation Starter: “Saving money lets you buy things that you might not have enough money for right now. When you add a little bit of money to savings over time, it helps make future purchases possible.” Tip: Name something you’re saving for, and how you plan on reaching your goal.

GIVE THEM THE GREENLIGHT

After you have the money talk with your kids (you’ve got this!), think about getting them a debit card — like Greenlight. Unlike a credit card, they can only spend what’s on it. (More on the differences between credit and debit here.) The best part: debit cards like Greenlight empower your kids to make smart money decisions, long after Spring Break ends.

With the Greenlight debit card and app, your kids can:

  • Set Savings Goals. Even staycations cost money. Teach them to save for it.
  • Learn to Make Trade-offs. Keychain or shark-tooth necklace? It’s their call.
  • Earn Allowance Through Chores. Greenlight kids who earn allowance save 26% more.

As they start learning about money management, you’ll be right there with them. The Greenlight app lets you:

  • Control Access to ATM’s. Are they taking too much out? Set limits.
  • Choose Stores. You decide where they can and can’t spend.
  • Get Real-Time Notifications and Monitor Their Spend Levels. Perfect if they’re vacationing without you.

GET SET FOR SPRING BREAK

Join Greenlight today and help your kids get a head start on budgeting for the break — and for life! Sign Up Now

[1] Investopedia.com [2] Debt.com

Why kids should understand the difference between debit and credit cards

Today, it’s not surprising that Americans have shifted from the traditional use of cash to more modern methods of payment like debit and credit cards. According to Fundera, 70% of consumers prefer using cards as a form of payment and 54% prefer using debit cards. 

Debit and credit cards provide convenience, more security than cash and are accepted nearly everywhere. It’s safe to say that while cash may not be going away, teaching children the basics of what credit and debit cards are now will prepare them to use cards responsibly in the future. 

Prepare them for the reality of credit cards

A credit card is a form of payment issued by a bank or business that allows the holder to purchase things on credit. When making purchases with a credit card, you promise to pay back the money you owe (plus any interest!) at a later date. 

When you carry a balance over month-to-month, the lender charges you interest on top of the amount you owe. Carried balances and interest can add up quickly and many families find themselves in a position where it’s tough to pay credit cards off.

In fact, 41% of America’s households have credit card debt. It’s important to introduce your kids to the concept of credit cards while they’re still in the nest – that way, they are prepared to carry one later in life. 

When it comes to teaching your kids, we recommend starting their money management adventures with a debit card. This protects them from overspending because they can spend only the money they have, and allows them to build healthy habits early before they enter the world of credit.

Teach them to manage money with a debit card

Debit cards provide more security than cash and fewer worries about debt than a credit card. A debit card is a form of payment that deducts money directly from a bank account to pay for a purchase. With debit cards, owners can have easy access to their available funds and can often also put money aside for something special using a savings account. 

Kids need to learn how to manage a debit card just like they need to learn how to drive. Whether your child runs their own lemonade stand during the summer, starts their first job or gets an allowance, a debit card can help kids learn to manage balances, save money, and more!

How Greenlight helps

Greenlight helps kids learn how to manage money and form strong healthy habits that will serve them as adults. According to Greenlight CEO Tim Sheehan, the reason Greenlight is a debit card is to “help kids learn to effectively manage the money they’ve earned, as opposed to spending money they may not have.”

Parents are the primary account holders and have the controls to choose where their children can use the card, manage chores and allowances, set parent-paid interest rates on savings, and more. Kids are able to monitor their balances, create saving goals, and learn how to make financially-smart decisions in a safe environment with their parents’ guidance. 

How parents send money using the Greenlight debit card.

Mistakes are just mistakes

With Greenlight, there is no chance for a child to overdraft or overspend since we decline any purchases greater than the child’s available balance. Mistakes are just mistakes! Parents get alerts when kids try to spend more than they have to spark conversations about budgeting and wise spending. 

Parents are able to allocate funds to their child’s “Spend Anywhere” account or choose specific stores where kids can spend and how much they can spend. They can even help their child create a savings goal and contribute money to meet that special goal. 

Ready to teach your child how to manage money responsibly?

Join Greenlight today to start adventures in personal finance with your kids!