New Year Resolutions & Bright Futures

Studies have shown that financial health is strongly connected to physical and mental wellness. There’s no better time than now to start routines that set your kids up for financially-healthy and happy futures. Let Greenlight help you set new year resolutions that you’ll actually keep to jumpstart your progress.

Resolution #1: We all need a bit of balance (tracking)

Our goal at Greenlight is to make sure all kids are empowered to make financially-smart decisions. We think empowerment starts with knowledge — working with kids to make sure they understand how much they earn, how much they spend and how they should save. 

Tip #1 is all about making sure kids take the time regularly (dare we say it, daily?!) to track their spend history and account balances. This new year resolution will naturally spark conversations around trade-off decisions, teaching your kids responsibility in budget management.

Within the Greenlight app, kids are able to monitor their spending, earning, saving, and giving history. This allows kids (and parents!) to track:

  • How much to expect in allowance
  • How much is available to spend
  • Progress toward their saving goals

“I have two teens (13 & 14). Being able to see their spending and balances digitally via the app has made them much more mindful of how and when they choose to spend their money.”

Antoinette K, Greenlight mom

Resolution #2: Save! Save! Save!

We know it’s hard for kids (especially the young ones!) to understand the difference between wants and needs. Starting kids out with a savings account early can teach them to save for what they want and be prepared to cover what they need because unexpected things happen. 

Consider mapping out a monthly plan with your kids to help them articulate, save for and reach their goals. 

The most popular saving goal for Greenlight kids in 2019 was a car!

If your kids earn an allowance based on grades or chore completion, write out how much each grade or task is worth. That will help them calculate what they need to do to accomplish their goals.

Parents are also able to help their kids reach their goals by setting aside a portion of allowances into their child’s Greenlight save account, helping reinforce wise saving habits.

Setting up saving goals within the Greenlight app helps kids visualize what they’re saving for and regularly track their progress.

Greenlight kids who create saving goals save 29% more than kids who don’t.

Once a week, consider having a family meeting to talk about how close your kids are to reaching their goal. Reviewing their spend history can help kids rethink a plan for the next week on how to spend less and save more. This regular routine can turn into a long-term habit that magically reduces the number of times you get asked for money.

Resolution #3: Watch savings grow with Parent-Paid Interest

After you get your family into the habit of saving, it’s time to learn about how to make your savings grow. Greenlight helps teach the power of compound interest by offering parents the ability to pay a parent-paid interest rate on top of their child’s savings.

On average, Greenlight families set a parent-paid interest rate of 18%. 

Once your kids understand the concept of compound interest, you can set your parent-paid interest rate to a more realistic one and have conversations around what grownup savings accounts typically earn.

Resolution #4: Have you done your chores?

Chore routines can be a great way to show your kids that money has to be earned. A recent poll of Greenlight parents showed that 73% give allowance, and 47% say their kids have to earn it. 

Use the beginning of the year to reassess your family’s chore routine. With age may come new responsibilities, changing the chores typically assigned to your kids.

However, if ever, you choose to reward your kids for chores, Greenlight can help with task management. With the Greenlight app, you can set one-time or weekly chores based on the routines you set for your family. 

In 2019, Greenlight helped kids finish 1.8 million chores!

Parent reviews all chores in one view within the Greenlight app.

If your child does dishes weekly, Greenlight allows parents to assign tasks and regular deadlines. If your child contributes to other household responsibilities by cleaning the gutters once a month, one-time chores may be assigned with an optional monetary reward upon completion.

Whatever your goals, Greenlight is here for you.

Greenlight is here to help your family feel empowered to talk about money and form smart habits with all the tools to raise financially-smart kids. Not a Greenlight member? Sign up today!

Using your kids’ debit cards to talk about money this summer

The money talk — not as scary as the birds and bees, but still a big deal.  In fact, 49% of parents say they’re not sure how to explain money to their kids [1]. Enter: Summer Break. More time at home means more time to talk about money management. Follow along for some conversation starters and tips on how to have the money talk.

EXPLAIN WHY BUDGETING IS IMPORTANT

79% of Americans keep a budget [2], which is great. Budgets may be a bit more involved for grownups, but that doesn’t mean your kids can’t start learning the basics. How? Start off by explaining why budgeting matters. There’s a good chance they’re already wondering that.

Conversation Starter: “What’s something you really want but you haven’t had the money to buy?” Maybe it’s something you can’t fit into your parent budget, or maybe it’s something you think they should buy on their own. During the summer, there are lots of opportunities for your kids to make money — help them figure out how to manage their earnings.

BREAK DOWN COMMON BUDGETING TERMS

Fixed expenses and variable expenses — ring a bell? Maybe, maybe not. Either way, these are important words to teach your kids about budgeting. Break it down into Summer Break terms and they’ll get it.

Conversation Starter: “A fixed expense is one that doesn’t change. Like, our Netflix subscription. It’s the same price every month. A variable expense is one that does change. Like, a meal at a restaurant. It can go up or down, depending on where we eat.”

TALK ABOUT SAVING MONEY

Budgeting for Summer Break is one thing — saving for it is another. Instead of handing over a wad of cash and hoping they stash it away, make it a hands-on experience with a bit of fun along the way.

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 your savings over time, it adds up so you can buy those things one day.” Tip: Help your kids make a savings goal (or better, lots of goals). Then, work together to plan out how they’ll reach that goal.

GIVE KIDS THEIR OWN DEBIT CARD

The fun part about the money talk is giving your kids their own debit card. Unlike a credit card, they can only spend what’s on it. The best part? They won’t realize that they’re learning valuable lessons every time they use their card — but trust us, they are.

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

  • Set savings goals.
  • Learn to make trade-off decisions. Keychain or shark-tooth necklace? It’s their call.
  • Earn allowance through chores. Cool fact: Greenlight kids who earn allowance save 26% more. Woohoo!

A few other things you can do in your app:

  • Manage access to ATMs. Are they withdrawing a bit too much? Set limits.
  • Choose stores. You decide where they can and can’t spend. Gas only? Just at restaurants? Adjust the settings in your app.
  • Get real-time notifications and monitor their spend levels.

GET SET FOR SUMMER

Join Greenlight today and help your kids get a head start on budgeting for their Summer Break — and for life! Sign up now

[1] Investopedia.com [2] Debt.com

Everything you need to know about National Decision Day

For many high school seniors, May 1st is an important day: National Decision Day. It’s the day they decide what comes after high school — the first of many big decisions they’ll make for themselves. This year, it also marks a day in which their decisions are heavily impacted by the world around us. 

They did the work, took the tests, made it through the teenage years and now have their sights set on graduating high school. While you and your family explore different ways to commemorate this milestone (perhaps with video calls and virtual graduation parties?), we hope you can still find time to talk about the next chapter of your child’s life.

The new-age debate

Our Gen Zs live in a world of entrepreneurs and self-starters. They’re seeing success as seven-year-old YouTube influencers make millions and 16-year-olds start their own companies.

So it makes sense why your kids will have different thoughts and considerations surrounding the college talk. That’s not to say that they don’t want to go to college — they just may not see it as the only option. As parents, we need to listen to that so we can guide them toward a decision that we all feel good about.

To sign or not to sign? What to consider

The college talk isn’t just on National Decision Day — it’s year-round. It’s a good idea to stay in the loop with the merging views on the subject. When you delve into the college talk, you may come across split views on a few things: 

Student loans: 

Because every financial situation is different, student loans are a hot button for many parents. If you and your kids are thinking about student loans, take time to explore every avenue and talk about how it will impact them throughout and after college. 

In 2018, the average individual student loan amount was $29,200. Loans may or may not be an option for your family. Either way, National Decision Day is a great opportunity to talk through the numbers with your soon-to-be grad. 

Public vs. private vs. community:

The good news is we’ve got lots of options. The not-so-good news? Well, it’s hard to decide! It’s no secret that most private schools come with a heavy cost and community schools are typically the most affordable. Public schools tend to sit somewhere in the middle of the two. 

Talk to your kids about finances — how they’ll be managing their money throughout college, pros and cons of an expensive school and what matters most to them. Your conversation could bring you to a cost-benefit analysis (bonus!) or it could spark up a new outlook on the entire decision-making process. 

Career analysis: 

Anyone else feel like their kids are too young to decide on a career path? In many ways, they are. That being said, they may have a different perspective. 91% of high schoolers believe they know their dream job, according to a survey done by EY and Junior Achievement. 

To them, a career is fun, exciting and adulty (their word, not ours). You know better than them that careers are not just about fun — they’re about financial security and stability. 

The transition out of high school is a prime time to have an open, honest conversation with your kids about this. You have the best insight into your kids’ strengths and interests, and you can use this knowledge to help them choose a path that will give them the biggest return on investment. (Props to you if you can make ROI sound fun!) 

Looking for a way to start the conversation? Try these: 

“Are we there yet?”

You’ve got a lot to think about, but no need to stress about it. National Decision Day is an exciting time for you and your kids. No matter what path they choose, the most important thing is that they have you. 

And… they have Greenlight! They may be growing up, but that doesn’t mean it’s time to stop helping them make wise money decisions. If you haven’t already, join Greenlight to keep your kids financially-healthy and happy throughout this next chapter of their lives.