This debit card teaches kids how to manage money
A new startup aims to teach kids how to financially support themselves.
Greenlight just raised $54 million in Series B funding for its debit card designed specifically for kids. The product gives children a means of spending money and hopes to help them learn financial responsibility under the guidance and control of their parents.
"Kids have just saved over $10 million in the Greenlight platform," Greenlight CEO Timothy Sheehan told FOX Business’ David Asman on "Varney & Co."
"It’s a debit card that the parents have control over, so they can choose the account, the stores where the kids can spend [and] they can choose how much the kids can spend."
The Greenlight card works by integrating several different accounts that allow children to spend, save and donate their money under the supervision of their parents. Parents load money onto their kids’ cards via the “Parent’s Wallet” and can, according to the company’s website, “set flexible controls and receive real-time alerts while kids monitor balances, set goals and learn how to manage money.”
The platform has a built-in savings account — with a parent set interest rate — where “parents can work with kids to make saving a habit.”
A chore tracking function means that kids can receive payments from their parents through the platform automatically upon the completion of their chores. These payments can be designated for either the spend, save, or give accounts.
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The card will cost families $4.99 per month, has no minimum age restriction and no transaction, transfer or overdraft fees.
**This story has been updated to reflect that Greenlight has raised $54 million in Series B funding.