Is the Greenlight Debit Card for Kids a Good Idea?

Part of being a parent is teaching your child about financial responsibility. This includes how to earn money, spend money, and know when you simply can’t afford something. While they can learn by example, it’s also important for children to have hands-on experience when it comes to financial responsibility.

The Greenlight Debit Card is one of the many available options aimed at teaching kids how the world works when it comes to spending and earning money. While parents are still in the picture, and pretty much have control, it gives kids a dose of what it’s like to have money at their fingertips and how to be responsible when it comes to spending and saving.

1. What is the Greenlight Debit Card?
2. Does the Greenlight Debit Card come with any fees?
3. How do parents set up the account?
4. Can I control the Greenlight Debit Card from my phone?
5. Is the Greenlight Debit Card for kids safe?
6. What are some alternatives to the Greenlight Debit Card?

What is the Greenlight Debit Card?

The Greenlight Debit Card is a card that allows parents to load money onto a card that their child can use to make purchases. The limit is set by the parents, unlike a credit card where the limit is set by the bank or company issuing the card. Kids quickly learn that they can’t spend money they (or their parents) don’t have.

The Greenlight card also has flexible controls that many parents like. They can turn the card off from the app at any time if needed. They can also make instant money transfers to their child’s card at any time. Parents can also set a limit on how much money can be spent at certain stores and receive alerts any time the card is used. While parents have many controls, the Greenlight card does give kids the feeling of what it’s like to have a certain budget.

There is also a chores management tool and a saving motivation machine. The chores management tool allows parents to set up weekly and one-time chores with rewards to motivate kids to do them. There is also an option to set up automated allowances where kids receive the same amount of money each week at the same time.

The Greenlight Debit Card can be used anywhere MasterCard is accepted. Parents also have the option of getting a customized card for their child with their picture on it. There is a one-time $9.99 fee for this option.

Besides learning about spending, kids also learn about saving. There is a feature that allows parents to set their own interest rate on money saved to teach kids about compounded interest.

Does the Greenlight Debit Card come with any fees?

Once you set up your child’s account, there is a $4.99 monthly fee that comes along with it. The first month is free and you can cancel at any time and avoid penalties.

The account includes debit cards for up to five kids. The monthly fee covers all cards under the account. There are no transfer or overdraft fees and no minimum balance required. Parents can set this up for their children of any age as there is no minimum age.

How do parents set up the account?

Signing your child up for a Greenlight Debit Card is easy. You just need the following information to get started online:

• Email address
• Mobile phone number
• Child/children’s name (s)
• Name
• Mailing address
• Date of birth
• Social security number
• A valid debit card or bank account to make transfers

Once you input all of this information, your child’s Greenlight car should arrive within 7-10 days.

Can I control the Greenlight Debit Card from my phone?

Yes, the Greenlight Debit Card has apps available in the App Store and on Google Play. The app allows parents to transfer money, get alerts about spending, and control all of the other card features from their phones. No matter where they are they can see what’s happening and be in contact with their kids about their account and card.

Is the Greenlight Debit Card for kids safe?

The Greenlight Debit Card is safe for kids. All accounts are FDIC insured through the Community Federal Savings Bank. This bank is compliant with the Payment Card Industry Data Security Standard. 

Any communications made between the phone and the Greenlight servers use state-of-the-art SSL encryption. So, parents can feel safe about the transactions they and their children are making.

What are some alternatives to the Greenlight Debit Card?

While the Greenlight Debit Card offers many features and is enjoyed by many parents and kids, there are other alternatives. Some parents don’t like to pay the $4.99 monthly fee and look for other options.

FamZoo is another debit card option for kids. It operates in many of the same ways as the Greenlight card, allowing parents to pay interest and make real-time transfers, as well as have parental controls. There is a $5.99 monthly fee that can be paid as you go or you can choose to pay in 6, 12, or 24-month increments and save a few dollars on the monthly fees by paying ahead.

The TD Go Prepaid Visa is also an option. It doesn’t have as many as the parental controls as the other cards, but there is a $0 monthly service fee and free ATM usage in-network. But, parents can get emails about card balances and purchases. This type of card may be best suited for teens.

There is also the Brinks Prepaid MasterCard. This card has a higher monthly fee of $9.95. It does have a mobile app that allows you to control features on the card, but there aren’t many parental features. So, this is another card that may be best for older kids.

In the end, the Greenlight Debit Card is a good option for parents who want to teach their kids financial responsibility while not ready to completely let go of all control.Parents need to decide what features are most important to them when it comes to teaching financial responsibility. The many features and ability to control them from the app is appealing to many parents, despite the monthly fee.