Navigating the world of personal finance can be challenging, especially when it comes to teaching children the value of money and how to manage it. Greenlight, a fintech company, has emerged as a popular solution for parents looking to empower their kids with financial literacy.
As with any financial product, the question arises: “Is Greenlight Legit?” In this article, we will delve into Greenlight’s background, offerings, and features to help you determine if this innovative platform is the right choice for your family’s financial education journey.
Learn More About Greenlight
Company Background and Founders
Founded in 2014 by Tim Sheehan and Johnson Cook, Greenlight has made it its mission to help parents teach their kids about money in a safe and controlled environment. The company offers the Greenlight Debit Card, a card for kids linked to parental accounts that comes with a comprehensive set of parental controls, allowing parents to monitor their children’s spending and teach them valuable money management skills.
Greenlight has partnered with Community Federal Savings Bank, ensuring that the funds in Greenlight accounts are FDIC-insured. This partnership not only adds credibility to the platform but also offers peace of mind to parents, knowing their money is safe.
Customer Reviews
Greenlight has garnered a strong reputation among users, as evidenced by its Trustpilot rating of 4.1 out of 5 stars, based on 4,504 reviews. As a verified company, Greenlight’s high TrustScore of 4 out of 5 indicates a significant level of user satisfaction and trust in the platform.
One satisfied customer highlighted the benefits of Greenlight for their adult son with Autism, stating that the platform had been an excellent behavioral reward system. The parents were able to use the Greenlight app to reward their son for reaching daily goals, and the customer service team was responsive in addressing their queries and replacing lost cards.
Another user praised Greenlight as a “win-win for kids and parents,” emphasizing the platform’s ability to teach children responsibility and money management while allowing parents to maintain complete control over their child’s saving and spending. The fact that the card is backed by Mastercard adds to its credibility and functionality.
A third review applauded Greenlight for its chore-based earning system and the convenience of sending money to their child anytime through the app, particularly during impromptu social gatherings. This customer also mentioned recommending Greenlight to other parents.
These positive reviews demonstrate the value Greenlight provides in fostering financial literacy and independence among young users, while also offering parents peace of mind and control over their children’s spending habits.
“Great Behavioral Reward System for Adult with ASD – We’ve been using the greenlight card with a behavioral reward system for our adult son with Autism for a year now. We parents have the GL app on our phones to reward him for reaching 9 daily goals up to $2.40/day for treats. Just having his own debit card (with his photo on it!) for purchases has been rewarding, not to mention getting hot chocolate at Starbucks! Greenlight customer service has been very responsive when we’ve had questions or needed to replace a lost card twice. We love it!”
“Win win for kids and parents – Greenlight has been a wonderful tool for our family. My child feels responsibility and is learning how to manage funds all while we have complete and utter control of her saving and spending. It is a real credit card backed by Mastercard. If you are considering, it is all that it says that it is and more.”
“I love how my child earns money with Greenlight based on chores, per my option. And being able to send her money any time through the app if an impromptu “hangout” occurs with her friends. I’ve told several other parents about Greenlight.”
The Greenlight Debit Card
At the core of Greenlight’s offerings is the Greenlight Debit Card, a prepaid card specifically designed for kids. Unlike traditional banks and credit cards, Greenlight provides a unique set of features tailored to the needs of both parents and children.
- Parental Controls: The Greenlight app offers parents full control over their children’s debit card purchases. Parents can set spending limits, approve or decline transactions, and even designate specific stores where their kids can use their cards.
- Savings Goals: Greenlight encourages financial literacy by enabling kids to set savings goals for themselves. Parents can further incentivize saving by offering a Parent-Paid Interest rate on their children’s savings.
- Investing Features: Greenlight Max, the platform’s premium tier, introduces investing features that allow kids to invest in fractional shares of stocks. This feature promotes early exposure to investing concepts and helps children learn about the stock market.
- Identity Theft Protection: Greenlight Max also includes identity theft protection for both parents and children, offering an extra layer of security for your family’s financial information.
Pricing Tiers
Greenlight offers three distinct pricing tiers to cater to different family needs and preferences. Each tier comes with its unique set of features and benefits.
- Greenlight Core: The basic plan costs $4.99 per month and includes access to all essential features. These features encompass up to five debit cards, the educational app, spending/savings tools, and the “Lite” version of the investing feature, which is only available for parents.
- Greenlight Max: This plan offers an upgraded experience with a monthly fee of $9.98. Alongside the features available in the Core plan, Greenlight Max subscribers receive 2% cashback, investing options for kids, and priority customer support. Additionally, Greenlight Max offers identity theft protection, purchase protection, and cell phone protection, collectively known as 3X protection. Subscribers to this tier also receive the Greenlight Black Card, a stylish and upgraded version of the standard Greenlight card.
- Greenlight Infinity: As the top tier, Greenlight Infinity unlocks every feature offered by the company at a higher subscription cost. In addition to the benefits provided in the Max plan, parents can enjoy increased peace of mind with location sharing, 5% cashback, crash detection, and SOS alert features that come with this subscription.
These pricing tiers enable families to choose the most suitable option based on their specific needs and desired features, ensuring that they get the most out of their Greenlight experience.
Is Greenlight Worth it for Your Family?
Based on Greenlight’s background, partnerships, and offerings, it’s clear that the platform is legitimate and has the potential to be a valuable tool in teaching kids about money. Greenlight’s partnership with Community Federal Savings Bank adds credibility and ensures that customers’ funds are FDIC-insured.
The Greenlight Debit Card, with its robust parental controls and savings goals features, provides parents with a practical way to teach their children about spending, saving, and financial responsibility. The addition of investing features in Greenlight Max further enhances the platform’s educational value, exposing children to early investment concepts.
However, it’s essential to consider whether Greenlight is the right fit for your family’s needs and financial situation. The platform’s fees may be a deciding factor for some families, as Greenlight charges a monthly fee for its basic plan and a higher fee for Greenlight Max. For those who feel the benefits outweigh the costs, Greenlight can be an excellent investment in their children’s financial education.
It’s also worth noting that Greenlight is not a replacement for a traditional bank account or credit card for parents. The platform’s primary focus is on providing financial education for children through the use of its debit cards and accompanying features. Parents will still need to maintain their bank accounts and credit cards for their financial needs.
Final Thoughts – Is Greenlight Legit?
Greenlight is a legitimate and innovative platform dedicated to helping parents teach their children about money management and financial responsibility. With its unique features, such as parental controls, savings goals, and investing options, Greenlight offers a comprehensive financial education solution for families.
The company’s partnership with Community Federal Savings Bank adds credibility and ensures that customers’ funds are FDIC-insured, providing peace of mind for parents using the platform.
While Greenlight may not be the perfect fit for every family, especially those concerned about the monthly fees, it can be an invaluable tool for parents looking to instill financial literacy and responsible money habits in their children. If you believe that investing in your child’s financial education is essential, Greenlight could be a worthy addition to your family’s financial toolkit. Click here to get started today!