wsj.com | July 8, 2023
By Kerri Anne Renzulli
For parents looking to provide their children with practice managing money, while maintaining some control over their spending, Greenlight’s debit card strikes an ideal balance.
Of the numerous bank accounts, debit cards and financial apps geared toward under 18 year-olds, Greenlight is Buy Side from WSJ’s top pick for kids and teens thanks to robust safety and educational features that grow with your child and family.
A grade schooler earning an allowance for the first time, for example, will only be able to spend as much money as you deposit into their account and you can set limits on where they can shop. Meanwhile, a teen can directly deposit their paycheck from a part-time job, earn cash back on spending and experiment with investing.
Greenlight also stands out for its educational offerings. Through in-app games, videos and quizzes children learn bite-sized money lessons, such as the difference between debit and credit cards, and get exposure to concepts such as compound interest.
Unlike some other options, however, Greenlight charges a $4.99 monthly subscription fee to maintain accounts for up to five children, more if you want investing and other perks. This can be offset by rewards earned on savings and cash back, but if the idea of paying to stash cash for your kids is a nonstarter for you, consider no-fee options. We particularly like free offerings from Capital One and Chase.
Are the perks worth the fees?
Greenlight offers rewards on up to $5,000 in savings, which resembles interest in a grown-up account, with the rate depending on which plan you choose. (Parents can contribute as well by paying their own chosen interest rate on a kid’s balance.)
If your child has between $4,000 and $5,000 in savings, your best bet is actually the highest-cost plan since you would come out ahead by up to $70 with savings rewards, more with cash back. (If your child has more robust savings, consider a high-yield savings account for any balance over $5,000. Also, go them.)
With the lower-cost plans, you won’t offset the fee with savings rewards alone. So deciding between the two—and whether Greenlight is worth paying for at all—is a matter of how much you value its other features.
Who benefits most from this card?
Greenlight’s emphasis on promoting saving and financial literacy, as well as substantial spending controls, makes it ideal for families with younger children. But thanks to features including mobile wallet payments, direct deposit and—with the Max and Infinity plans—investing, it also works for older teens. This means you won’t necessarily need to change accounts as your child matures or deal with numerous logins if you have children with varying levels of experience with money.
Regardless of age, parents are likely to appreciate that the Greenlight debit card is linked to a prepaid account. This means kids cannot spend more than they have, giving them space to make budgeting mistakes with low stakes and sparing you costly overdraft charges.
If they wish, parents can monitor their kid’s spending through the app and opt to receive real-time notifications whenever the card is used or declined. Greenlight also gives parents control over how much their children can spend either overall, per transaction or at specific retailers. Additionally, parents can set limits on ATM withdrawals.
For kids earning an allowance, Greenlight’s app allows parents to pay for chores or one-time tasks. You can also opt to have a recurring sum automatically deposited into the account weekly, biweekly or monthly.
How we picked
To pick Buy Side from WSJ’s Best Debit Cards for Kids and Teens, we looked at card options available to those under the age of 18, including prepaid debit cards, checking account-linked debit cards, secured credit cards and brokerage account-linked debit cards.
To pick the best ones, fees to open or maintain the account were most heavily weighed, followed by the range of parental controls available and other perks such as interest payments, rewards or educational tools. We also favored cards that were easy to obtain and for parents to monitor with a well-reviewed app experience.