In a recent survey, 97% of respondents said they’d rather talk to their kids about the birds and the bees than explain how finances work.
Okay, we just made that up.
But the fact remains, parents have traditionally fallen short when it comes to preparing their children to manage money. And without that fundamental skill, those kids grow up to make poor financial decisions as adults.
There’s an app for that!
Atlanta-based Greenlight Financial Technology has a better idea. Founded in 2014, the company created the Greenlight Card—a debit card for kids. It lets them learn firsthand how to earn, save, budget, and manage spending—a realistic experience without the risks that come with using cash or running amok with their parents’ credit cards.
Parents can manage their kids’ accounts via the Greenlight app and put various restrictions in place, such as limiting the stores where purchases can be made. They can also set up automatic allowance payments, receive alerts when transactions are made, send money to the account, and even set up “parent-paid interest.”
Tim Sheehan, CEO and co-founder of Greenlight, said that by using the debit card, “kids can see in real-time what’s happening with their money, keeping them engaged and invested, while creating natural opportunities for parents to have financial conversations with them.”
Now, about those birds and bees…