In a world where financial literacy and responsible money management are crucial skills for future success, Greenlight Financial Technology has been leading the way by providing financial education and debit cards to its child and teen customers since 2014. Now, the company is taking it a step further with the launch of the Greenlight Family Cash Mastercard, a credit card designed to help these young customers build their credit before they reach adulthood. In this article, we’ll explore the key features of this revolutionary credit card and how it sets Greenlight apart from its competitors.
The Greenlight Family Cash Mastercard
Parents can now add their teens as authorized users of the Greenlight Family Cash Card, which is available with all Greenlight subscription plans, starting at just $4.99 per month. Alongside the convenience and security of a credit card, families can also earn up to 3% cash back on all purchases. The Greenlight Family Cash Mastercard is issued by the First National Bank of Omaha, ensuring a trusted and reliable banking experience.
Features and Benefits
The Greenlight app empowers both teens and parents with a range of features and benefits. Teens can easily track their credit card balances, helping them develop responsible spending habits from an early age. Parents, on the other hand, can set up flexible spending limits for their teens and receive real-time purchase alerts, giving them peace of mind and control over their child’s financial activities.
Level Up Financial Literacy Game
One of the standout features of the Greenlight Family Cash Mastercard is the integration with Greenlight’s in-app financial literacy game, Level Up. This game now includes credit lessons specifically designed to aid teens as they use the credit card. By providing interactive and engaging educational content, Greenlight ensures that children and teens learn important credit card concepts, such as the importance of paying off the credit card each month to avoid compounding interest and the long-term benefits of maintaining an excellent credit score.
“There’s some card programs where you can add an authorized user, but nobody has all three of these features,” says Tim Sheehan, co-founder and CEO at Greenlight.
Greenlight’s Growth and Success
Since its inception, the company has experienced remarkable growth, currently working with over 6 million customers. The company has raised approximately $550 million in total venture-backed capital, with its most recent investment being a $260 million Series D round in 2021, valuing the company at an impressive $2.3 billion.
Expanding Beyond Credit Cards
One of Greenlight’s many products is the Mastercard. K-12 institutions, educators, and students all have access to the company’s free, online financial literacy library that was released in December. Greenlight’s introduction of family safety features to its Greenlight Infinity subscription plan, which costs $14.98 per month for the entire family, is additional evidence of the company’s dedication to providing families with the means to achieve economic independence.
Overcoming Challenges
Despite its rapid growth, the company has faced its fair share of challenges. In January, the company made the difficult decision to lay off approximately 21% of its employees. Tim Sheehan, CEO of Greenlight, attributed this decision to the macroeconomic environment at the time, emphasizing the company’s focus on retaining its existing customer base.
“The highest compliment our customers could give us is that in a difficult economy they still keep their Greenlight subscription,” says Sheehan.
Future Plans
Looking ahead, Greenlight has exciting plans to continue expanding its financial literacy offerings. The company recently rolled out the card in the Classroom, a teacher’s guide combined with Level Up, in Georgia, with plans to introduce it nationwide in the fall. This initiative aims to equip educators with the necessary resources to teach financial literacy effectively, ensuring that the next generation is well-prepared for a financially secure future.
Frequently Asked Questions
1. How does the Mastercard help teens build credit?
The Mastercard allows teens to become authorized users, giving them the opportunity to start building their credit history. By using the card responsibly and paying off the balance each month, teens can establish a positive credit score early on.
2. Can parents monitor their teen’s spending with the Greenlight app?
Yes, parents have full control and visibility over their teen’s spending with the Greenlight app. They can set spending limits, receive real-time purchase alerts, and track their teen’s credit card balances.
3. Are there any additional fees associated with the Greenlight Family Cash Mastercard?
The Mastercard is available with all Greenlight subscription plans, starting at $4.99 per month. There are no additional fees specifically associated with the credit card itself.
4. How can Greenlight help families improve their financial literacy?
Greenlight offers a range of resources to help families improve their financial literacy. From the Level Up financial literacy game to the free web-based financial literacy library aligned with K-12 national standards, Greenlight provides valuable educational content for all members of the family.
5. What sets Greenlight apart from other credit card programs for teens?
Greenlight’s combination of features, including the ability to earn up to 3% cash back, the integration with the Level Up financial literacy game, and the robust parental controls, sets it apart from other credit card programs for teens. These comprehensive features ensure that teens not only have access to credit but also develop responsible financial habits.
In conclusion, Greenlight Financial Technology is revolutionizing the way children and teens learn about finance and build credit with the introduction of the Mastercard. By combining the convenience of a credit card with educational tools and parental controls, Greenlight empowers families to take control of their financial futures. With its commitment to financial literacy and continuous growth, Greenlight is poised to make a lasting impact on the next generation’s financial well-being.
First reported on Tech Crunch
Featured Image Credit: Photo by Blake Wisz; Unsplash; Thank you!
