The Debit Card That Actually Helps Kids Learn to Save
Handing your kid a debit card while they’re young is a fantastic way to build independence and teach them the true value of a dollar.
But let’s be real, traditional banks usually make you jump through endless hoops to get one. Plus, giving teens free rein with cash before they truly understand budgeting can be a little nerve-wracking!
Our tried-and-true kid-friendly debit card is the Greenlight Card, and we can’t recommend it enough!
Plus, right now you can score a FREE 7-day trial – after that, it’s just $5.99 a month.
All kids can get a debit card with Greenlight!
One of the most unique aspects of Greenlight debit cards is that there’s no age limit. It’s truly a debit card that allows you to start teaching them practical financial skills at any stage. 🙌 You can apply for a debit card as soon as you want to start allowing your kids to use them.
Parents are still in control.
Once you receive your Greenlight debit card, you and your child can both download the same Greenlight app, but you’ll have access to different features. Parents can easily transfer cash into their kid’s Greenlight account via the app, so they’ll be in charge of how much their child has access to.
You can keep it simple by transferring a set amount and calling it a day, OR you can take advantage of the neat features that Greenlight offers!
Transferring from your existing bank account is also really easy with Greenlight.
Parents can transfer money into their child’s account from their own checking account at any bank instead of having to create their own just for Greenlight transfers.
Transferring between accounts at different banks can be difficult and often loaded with fees, so Greenlight is perfect for parents looking to avoid those unnecessary steps.
Here are some other things that set Greenlight apart from a traditional debit card:
- The ability to create chore lists. Parents can delay their kid’s ability to access the money until they complete their chore list, rewarding them for completing all the tasks.
- Real-time spending alerts. Parents will always know what, when, where, and how much their kids are spending.
- The ability to switch off the card. If the Greenlight card is lost or stolen, freezing it is as easy as clicking a button.
- The Round-Up program. Kids can save while they spend! Each time they make a purchase, Greenlight will round it to the nearest dollar and put that toward their savings.
- Parent-paid savings interest. Want to teach your kids the benefits of compound growth? You can opt to set a parent-paid interest percentage for their savings accounts!
Another great perk that comes with getting a Greenlight debit card for kids is zero risk of NSF fees! Even if you set up a guardianship account with your child at a traditional bank, they’re very limited in what they can do and may still get hit with overdraft fees if they aren’t careful.
These can be outrageously high and often compound to put overdrawn accounts severely in the negative.😱
And speaking of safeguards, Greenlight keeps parents protected when getting a debit card for kids.
First, like almost all banks, your Greenlight account is FDIC-insured for up to $250,000.
Second, there are certain debit card transactions that your kids will not be able to complete. Per the Greenlight website, these include:
- Wires or money orders
- Security brokers or dealers
- 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
It’s a pretty comprehensive list, and it still allows your kids to use their debit card for normal, everyday purchases without the risk of them using it for something that could get them in trouble.
You can also teach your kids about investing!
Signing up for Greenlight Max lets you start teaching your kids about investing, starting with only $1!
And while signing up for Greenlight Max will increase your monthly payment from $5.99 to $10.98, you aren’t on the hook for any trade fees, which are often even more than the difference between the regular and Max Greenlight accounts.
See why Hip2Save team members can’t recommend Greenlight enough:
I love it! I can set up my kiddo’s allowance to be split between spending, saving, and investing, and it gets sent to him automatically monthly. I can also add a chore list that he can check off himself, and then I can go in and make sure all the chores have been completed before his allowance has been set. I also love that if he needs money for something, he can request it and I can approve it with one click. I have our account set up for auto funding, so I always know that there will be money in the account to cover his allowance and other random purchases as needed. It’s also really easy to add more funds directly from my bank account if needed with the click of a button. – Jessica, Hip Sidekick
We want our kids to have an account and get used to having a debit card. When looking at other banks and trying to decide what sort of debit card to get our daughter, we realized we needed a bank account wherever we got her a debit card. For example, if we wanted to get her a Chase card, we needed to have a Chase account. With Greenlight, you can link your existing bank account to the card. So our daughter’s Greenlight debit card is linked to our Charles Schwab checking/savings account, which we like. – Melinda, Hip Sidekick
We quickly discovered how awesome Greenlight is, especially for families with tweens. First, the Greenlight app is super easy to use and allows you to easily and instantly move money from your Parent Wallet into your kiddo’s wallet (I have used this feature when my kids have been with a friend’s family and end up stopping somewhere to eat and quickly need some $ to cover their meal). I love that because it’s a debit card and it has a Mastercard logo so it is accepted anywhere Mastercard is accepted. Kiddos cannot spend any money that they do not actually have in their Greenlight wallet.
Parents also have the ability to instantly turn the card off via the app, automatically transfer allowance payments, manage chores, and (my favorite feature) receive alerts whenever the card is used! I love this feature as it is super helpful to get real-time alerts about where my kiddo is spending money AND how much they just spent.
We do pay a monthly fee of $5.99, but this fee is well worth it in my opinion, and keep in mind that it includes debit cards for up to five (5) kids, so both of my boys have their own Greenlight card. – Bryn, Hip Sidekick
Thxs for this. We had this card for our teen & it was nice. We have since moved her to an actual bank card that has set up similar options like chores. Since you can only use what’s in your account, we do not incur NSF fees either. I really enjoy the learning aspect of these cards. Thxs!
Great idea. I have an extra account I transfer money to when shopping online. My son 14, has this debit card to this account he uses, but knows I don’t keep much money on there unless I’m buying something or I’ll set a limit what he can spend if he’s out. I don’t have overdraft or anything on here just in case it gets lost or stolen m.
We have this for both of my teens. Love it. I never have to worry about them having money when they are out. I can easily turn their cards off, if needed. They are learning alot about money
We have this, and I do like Greenlight, and we pay the $4.99 monthly fee, and it is worth it. Just be aware that if the parent want to transfer money back into their bank account from GL, you need to speak with customer service and it can take 5-10 business days. It is much easier to transfer in (instantaneous) than to transfer money out. Also, I did not realize I had to move money from Spend Anywhere category into the ATM category. My daughter’s ATM transactions were denied for that reason–so I guess we are still learning–but we do like the convenience of the card-and you can send a photo and get it personalized which was a lot of fun for my kids!
My child has had a greenlight card for almost a year. It has been good. I love the parent alerts when she spends. I am divorced so it is especially useful because both parents get the alerts. Also both parents can add funds to the account. If you upgrade to the $9.99 you can also purchase stocks. While I find it very beneficial I can’t stand the monthly fee. Chase has recently added a debit card for kids with no monthly fees. It doesn’t come with all the additional features but it will be a back up for the GL card.
My 11 and 12 year olds have these. I put their allowance on it so they can buy what they want. Works especially well for things like roblox (as opposed to cash allowance, where they’d have to hand me cash and I put it on my card).
I had one of these growing up, it was awesome! Thanks for sharing.
Oh cool! You’re welcome! Thanks for commenting! 🙌
Thank you for this post! My teen is going to Europe on a school trip, and I need to get them a card to take that I can easily/quickly fund with my bank account. So I’ve got to find one with no foreign transaction fees. I’d love to know what other parents do in a similar situation!
I disagree. Why pay a fee and have an account that is just online, god help you if you need customer service. Wells Fargo offers an account called Clear Access Banking, it waives the fee until the child turns 25 and the parent is on the account with them. In addition, you can’t overdraw the account. And you have face to face customer service to help with issues or answer questions. Make sure you review all your options.