As parents, we all want to make sure our kids learn to be responsible with their money. Credit cards or debit cards designed for kids can be a great way to teach them the value of earning and spending responsibly. But, how do you know which credit card or debit card is best for your child? Don't worry, I can help by breaking down the benefits of the Greenlight Card, the debit card design specifically for kids. In today's blog post we'll take a deeper look at the Greenlight debit card for kids, look at some Greenlight Card reviews, and discuss why the Greenlight card is the best debit card for kids.
What is the Greenlight Card?
Greenlight is a debit card designed for kids. It was created by the Green Dot Corporation and has been on the market since 2009. The card is designed to offer a safe alternative for kids who want to have their own debit card.
How Does The Greenlight Debit Card Work?
The Greenlight Card is a Visa Credit card for kids. The card features many of the same benefits as debit cards designed for adults, like free ATM withdrawals nationwide and 24-hour online account access with password protection. However, there are some restrictions on how much your child can spend or withdraw from their account each day without notifying an adult. This ensures that you're always in control of what's happening to the money in your kid's bank account.
Pros and cons of the Greenlight card for kids
Pros of the Greenlight card for kids
- This is a debit card NOT a credit card so there is no credit line which means that your child won't have access to a line of credit. This provides an extra layer of protection against fraud or misuse by someone else who might try and use their account without permission.
- The card comes with some of the same benefits as an adult debit card. This includes free ATM withdrawals and 24-hour online account access, but also a daily limit on spending or withdrawing money without notifying you first.
- You can monitor your child's purchases by signing up for text message notifications from Green Dot Corporation which will tell you when they've made a purchase or withdrawal using their card.
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Cons of the Greenlight card for kids
- There will be a monthly maintenance fee starting at $9.99 per month
- You're limited to one Greenlight debit card for every individual under the age of 18
- Not accepted in several countries which can be a bummer if you are not in the united states.
- Direct deposit is limited to transfers from a parent account. there is no way to make a deposit at an ATM
What about fees? What does this cost me?
Greenlight is one of the most affordable debit cards for kids on the market. You can get debit cards for up to five people on one plan, and they start at just $4.99 per month.
Greenlight also offers a Greenlight + Invest plan that you can opt into for a monthly fee of $7.98. Greenlight + Invest makes investing in stocks easy and affordable. With as little as $1, your kids can purchase fractional shares of their favorite companies. There are no trading fees for these trades – so it's free to buy!
Parents approve every trade right from the app- so you have complete control over your child's investment activity at all times.
For $9.98 per month, you can sign up for the Greenlight Max which offers a sleek and modern black card as opposed to the standard greenlight card. Greenlight Max comes with priority customer services, identity theft protection, cell phone protection, and purchase protection that replaces or repairs items purchased with their Greenlight card.
Is a credit card for kids really a good idea?
Actually YES! Research has shown that early exposure to money can lead children on the journey towards personal finance awareness. The sooner you start teaching your child about budgeting, as early as age seven and before they are making purchases or earning their own income, the better off they will be throughout life – financially speaking of course!
That being said, it’s usually a good idea to look into alternatives to Greenlight Cards for Kids, just in case you’d like to explore other options. In any case, giving your children a card that they can’t overdraw lets them enjoy spending without the worry of them causing a financial mess.
Who should get the Greenlight Card?
Parents who want to teach their children about money at early age should get the Greenlight Credit Card for Kids. I introduced Reese to the Greenlight debit card when she was 8. We recently switched to the Greenlight Max card when she turned 12 because she wanted to try her hand at investing.
I personally feel the Greenlight Debit card is perfect for kids ages 8-16. By age 16 I would transition them to a standard debit card from a bank with a checking account attached.
FAQs about the green light cards, and other frequently asked questions
Is the Greenlight card for kids a debit or credit card?
It is a debit card, which means your child will not be able to earn credit by using the Greenlight Credit Card for Kids.
What are some of the benefits of having a green light card?
Their card comes with some of the same benefits as adult debit cards. This includes free ATM withdrawals and 24-hour online account access, but also a daily limit on spending or withdrawing money without notifying you first.
Where is the Greenlight card accepted
The Greenlight card can be used “ALMOST” anywhere Mastercard is accepted, online and in-store. Greenlight has built in a few safety features since Greenlight is designed for kids. With that said, your child's Greenlight debit card can not be used for:
- Wires or money orders
- Security brokers or deals
- Dating/escort services
- Massage parlors
- Lotteries
- Online casinos or online gambling
- Horse racing and dog racing
- Non-sport internet gaming
- Cashback at the point of sale
They can however use their Greenlight debit card internationally in over 150 other countries, with no foreign transaction fees. You don't even need to let Greenlight know when you are traveling.
What do I need to signup for a Greenlight debit card for kids?
- Your email address
- Your mobile phone number
- Your child’s/children’s name(s)
- Your legal first and last name
- Your mailing address
- Your date of birth
- Your Social Security number (SSN)
- A valid debit card or bank account
What makes Greenlight debit cards different than regular debit cards?
The Greenlight debit card is better than a regular credit or bank debit card because it was built with families in mind. Yes, the app helps parents stay on top of their child's spending by providing them with all relevant information about where they are shopping/what items have been purchased from specific stores near to your home- but there’s more!
In addition to being a debit card, the Geenlight card has a built-in chore board that allows parents to assign chores for kids to complete, monitor what's been done, and offer automatic allowance payments. With the addition of Greenlight Max, kids also have access to investing which is unheard of with standard debit cards.
