Greenlight Review [2024]: Is This Debit Card Right for Your Kids?

What is Greenlight?

Greenlight is a fintech company launched in 2014 by co-founders Tim Sheehan and Johnson Cook. The debit card allows parents to monitor spending and pay allowances. I found the app and website to be user-friendly for both myself and my kids. I have an iPhone, but the app is also available on Android and has the same features.

Before signing up, it's helpful to decide what you want to spend and what features you want. The base plan offers basic debit card features, but if you have tweens or teens like me, you may want to consider the monthly investment tools in the premium plans. I believe that the earlier kids get comfortable with investing, the easier it is to make it a natural part of their lives as they grow up, setting them up for financial security.

My experience with Greenlight

The Greenlight debit card for kids is just what it sounds like — a debit card designed for children to use. As a parent, I was able to load the prepaid card using the Greenlight app, and my kids could access the funds. You can make transfers manually or set up weekly direct deposits.

I love that parents can set the terms for adding money. For example, I set up a handful of chores my kids had to complete before getting paid. You can set up repeating chores, which I did, or you can set up one-time jobs. I like this feature because it shows kids that it pays off if they put in some extra effort. You also have the option to set up a repeating allowance, which some of my friends’ families prefer.

Parents and kids both get access to the Greenlight app, but they see different information when they log in. As a parent, I could see my children’s transactions, including monitoring balances and seeing purchases.

I chose the Greenlight Max account, which also includes the investing feature. My kids can see their balances and set goals in their version of the app. They can also take advantage of the educational tools that help them learn more about investing. On my end, I was able to approve each trade before they made it. This allows kids to feel empowered while parents have peace of mind that they aren’t making risky decisions.

Greenlight card spending and saving balances are insured by the Federal Deposit Insurance Corp. (FDIC) up to the limit of $250,000.

On the investing account side, Greenlight is registered with the U.S. Securities and Exchange Commission (SEC) and is also a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC).

So although there’s no guarantee against decisions you and your kids make about money, you are protected in the event that the Greenlight company fails.

How much does Greenlight cost?

Which plan is right for you?

Families have many options when choosing their Greenlight plan. As I mentioned earlier, I chose the Greenlight Max because I wanted my kids to learn about investing, but there are many factors you should consider before selecting a plan.

Greenlight Core: Do you want a basic debit card?

If you’re just looking for a basic debit card to pay your kids’ allowances or to help them manage money, Greenlight Core may be a good option.

It costs $4.99 monthly and includes the Greenlight debit card, which you can get for up to five kids. You’ll have access to the Greenlight app, which offers two different experiences for parents and kids.

This plan includes tools that allow kids to see their spending and saving balances and set their own goals. Kids earn 1% on their savings and can track items like allowance as they earn it.

The Greenlight Core plan also includes parental controls. Parents can choose to add funds to their kids' Greenlight cards, set spending limits and store-level controls, and monitor their kids’ accounts.

Parents can also invest in up to 10 exchange-traded funds (ETFs) on their child's behalf. However, this plan doesn’t allow kids to invest, so if that’s something you want, consider the Max or Infinity plans.

Greenlight Max: Do you want your kids to learn how to invest?

I chose the Greenlight Max plan because I wanted my kids to become comfortable with investing. It offers all the same features as the Core plan, but kids can make investing decisions with this higher-level option, which costs $9.98 per month.

With this plan, kids can begin learning about investing money with as little as $1 on a platform designed for them. No trading fees are involved, and I had to approve each trade from my parent account when my kids chose to invest.

I love that Greenlight helps kids buy fractional shares, providing them with a way to invest in their favorite companies.

The Greenlight Max plan also offers financial benefits. Kids earn 2% rewards on their savings accounts versus 1% in the Core plan and 1% cash back on purchases deposited into their savings accounts. This helps encourage kids to save and helps them learn the concept of compound interest and earning cash back.

Some added protections, including identity theft, cell phone, and purchase protection, didn’t make or break my decision, but they are nice additions. These benefits are similar to what parents get on their credit cards, so it’s nice to teach kids about them early, as many adults don’t even know they exist.

Greenlight Infinity: Is safety a concern?

If you want more than what a free app like Life360 offers, Greenlight's Infinity plan, priced at $14.98 a month, is a comprehensive solution. It includes all the features of the Max plan, plus safety features that give parents of tweens and teens peace of mind.

Personally, I find ways to get most of these features for free. Our iPhones have family location sharing, and Life360 takes it a step further, offering crash detection and driving reports, but the Infinity plan isn't a bad option.

For parents looking for a more comprehensive solution, the Infinity plan offers family location sharing, SOS alerts that notify 911, crash detection, driving reports, and real-time trip alerts. As a parent, I understand the need for these safety features because knowledge is power in today’s world, and you need that sense of security.

With the Infinity plan, you get safety features, and your kids can earn 5% savings rewards on their savings up to $5,000 per family. This all-in-one app may be the answer if you’re looking to cover your family's financial education, financial management, and personal safety.

The Debit Card Designed for Kids

Greenlight Benefits

• Kids can earn money through chores, set savings goals, spend wisely, and invest
• Get real-time notifications every time their kids spend money
• Kids get up to 1% cash back and 2% on their savings balances
• One month free trial, then as low as $4.99/ month

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What I like about Greenlight

• Security features: Greenlight requires parental approval for investments, as well as ongoing monitoring, spending controls, and other security features, which provide peace of mind. Kids can make decisions, learn from their mistakes, and have your guidance along the way.
• Educational tools: I like that Greenlight teaches my kids how to set financial goals and monitor their money. The hands-on tools make my lessons easier for them to comprehend, and they learn first-hand how to put the habits into practice.
• Teaches kids financial responsibility: Because it’s an app with financial management tools, kids can learn valuable lessons. The Greenlight debit card prevents kids from spending more than they have and could help them learn how to manage their money responsibly.
• Encourages saving for kids: Greenlight savings offers parent-paid interest, which allows parents to boost their child's savings. It also offers Round Ups, which you can enable to round purchases up to the next dollar and put the difference in savings. This is in addition to the interest kids earn on their savings that's paid by Greenlight.
• Easy money management for the family: With the Greenlight card, it was easy for my whole family to manage their money and learn together. I could quickly and easily send money to the card, automate weekly transfers to my child's card, monitor spending, and set rules for spending categories in real-time.
• Customized cards: If you like customized cards, it’s available for a flat fee of $9.99.

Alternatives to Greenlight

I researched before joining Greenlight because I knew there were other options. While I chose to pay for Greenlight monthly, there are options to avoid monthly fees and help your children manage their finances.

• Capital One MONEY: Children ages eight and up can open a free account, which includes a free debit card. Parents get similar controls, including locking or unlocking the child’s card, setting spending limits, and setting up one-time or recurring transfers. There is no monthly fee, but you don’t get the additional features Greenlight offers.
• Child account at your bank: Many banks offer free children’s accounts if you have an account there. Having accounts at the same bank makes transfers seamless and cuts down on the paperwork, apps, and passwords you must remember.
• Life360: As I mentioned earlier, Life360 offers free location sharing, crash detection, and other safety features that may be beneficial if you have teens or tweens who are asserting their independence. There is a paid version, but the free version works great for me.

FAQs about Greenlight

How to get started with Greenlight

To start with Greenlight, you will need the following information. Gathering what you need ahead of time might help the process go smoother:

• Email address
• Mobile number
• Identifying information, including your name, birth date, and Social Security number
• Mailing address
• Children’s names
• Valid debit card or bank account

Once you have that information, you can click on the “Get Started” button on the Greenlight website. You’ll be prompted to enter your mobile phone number. Once you enter it, you’ll be taken to a page asking whether you’re the parent/guardian or the child. When you confirm that you’re a parent, you’ll be texted a confirmation code. Enter the code, and you can create your Greenlight account.

From there, you’ll be able to choose your plan and then download the app and provide information about the children you want to add to the app. Greenlight offers a 30-day trial, and you can change your plan anytime. It will take 7-10 business days to receive your debit card. 

Bottom line

For parents hoping to help their kids learn about money management, the Greenlight debit card can be a valuable tool. There are a number of resources, and it makes it easy for you to see what your children are doing with their money at any point.

However, Greenlight does cost money. There are other ways to provide your child with access to a regular or prepaid debit card, as well as learn about investing without paying fees.

Many of the best banks offer joint accounts with children, which allow you access and control — though seeing everything probably isn’t as simple as what you’d get with Greenlight.

If you want everything in one place and in a way that’s easy to see and manage, Greenlight might be worth the cost.

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Get real-time notifications every time your kids spend money

Kids get up to 1% cash back and 2% on their savings balances