The Best Gift is One That Gives Back

We love the holiday season at Greenlight. It’s a time when families have thoughtful conversations about what they’re thankful for. Many talk about the importance of generosity and reflect on our responsibility to give to those less fortunate. Some families offer their time to support noble causes and give back to their communities. Some choose to make donations to nonprofits.

Throughout this Thanksgiving season, we encourage you to share with your kids the gift of giving. 

Generosity is part of human nature. And it leads to happier lives.

A research study published in the Journal of Experimental Child Psychology in 2015 explored generosity in toddlers by putting a container of marbles at shared tables to see how their children would distribute the marbles. Most of the time, the kiddos would distribute their marbles equally. 

In another variation of the study, toddlers were given separate trays and the researchers randomly distributed the marbles between them. In situations where a child was given more marbles than their partner, one-third of the time, the lucky toddler with more marbles would give up their extra marbles to their partner to even the score.

A different study by the University of Zurich in 2017 found that generosity actually makes people happier, even if they only give a little. 

Choose your way to give.

Ashley Noto, Greenlight’s SVP of Product and Analytics gave us a look inside how her family gives back during the holidays: “With all the gifts from friends and family during the holiday, I think it’s also a great opportunity to celebrate the joy of giving with my kids,” she said.  “At the beginning of the season, we adopt a family in need. We all contribute earned allowances and participate in buying items for the family. As the season comes to a close, my kids give back — either a toy or a portion of gift money they received — to a charity of their choice.”

There are many different ways kids can share their generosity and give their time, effort or money! 

  1. Time: Choose an organization to volunteer with as a family. Volunteermatch.org is a great place to identify opportunities to donate your time. You can even search by different causes.
  2. Unwanted items: Involve your kids by encouraging them to clean their closets and donate old clothes to local organizations.
  3. Toy or food drives: Many schools and local businesses run toy and food drives around Thanksgiving to give to those less fortunate. 
  4. Money: Donating money helps enforce lessons in budgeting with kids while instilling the importance of generosity. 

Set monetary donation goals.

In anticipation for the holiday season, work with your kids to set individual or family donation goals. As your kids are gifted money for the holidays, work with kids to put funds back for an end-of-year donation. 

  • Allocate a percentage of allowance payouts into your kids Give accounts which can only be used with charitable organizations. 
  • Create a Greenlight Savings Goal to help kids track progress toward a larger donation. Did you know that kids who set saving goals save 29.5% more than kids who don’t? Have your kids research their favorite charitable organizations — ones they identify with the most. If you need someplace to start, these are the 3 most popular organizations for Greenlight kids.

It’s always important to remember the power of the collective. Even the smallest donation is part of a much larger community of givers.

Rewarding generosity.

It’s also important to reward your child’s generosity. Praise them for contributing to causes larger than themselves and weave giving back into regular conversations. You’ll notice how naturally these conversations emerge – whether it’s an ill classmate in need or a school-sponsored food drive.

At Greenlight, we are proud to celebrate generosity. In December, we have some special things planned to encourage the giving nature of Greenlight kids and reward them for their efforts. Stay tuned!

Give with Greenlight!


Sign up for Greenlight today to encourage giving. 

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!