Is this a great idea or just another “I want” for parents to deal with? A new company in the US says it has solved the problem of how to give primary and junior high school students money without worrying that they’ll lose it, spend it on something they shouldn’t or just blow it. It isn’t the first reloadable, prepaid card. MasterCard, Visa and American Express each offer parent-friendly debit cards. But Greenlight is taking on the establishment by adding a heap of services to its offering, as well as making its pricing very affordable. Greenlight offers a new way to give your child the money they need while monitoring where they can go. The great part is that Greenlight charge only US$4.99 per family per month for up to five kids rather than take a percentage from each transaction. It’s the first card with store and website-level controls, meaning parents nominate a specific amount that their child can spend at a specific store or website — like Starbucks, the Apple Store. Amazon.com. The ability to choose the specific stores where their kids can shop has really resonated with parents. Parents can also automate allowances, set up savings accounts, receive notifications when purchases are made, or if transactions are declined. Notifications are also sent out if the child makes a new request, if the balance is low, funds are transferred, when the card is turned on or off, or when messages are received. Greenlight are also rolling out a Greenlight Savings account and Greenlight Giving, which will give parents and their kids a full view of their finances across spending, savings and giving. They are very focused on empowering parents to raise their kids to be financially smart: to learn to spend wisely, the importance of saving so they can cover unexpected expenses, how to build wealth through investing, and the importance of credit. Kids can access cash from an ATM but most parents prefer that ATM access and cash-back is disabled. They have a program where parents can set a specific amount that their child can withdraw from an ATM for parents who want that ability. As soon as parents approve spending in the app, the card is instantly updated. Kids can be standing in the checkout line and realize they don’t have enough money and make a request. As long as the parent is ready to approve it, their card is updated instantly. Many junior high and high school kids already have mobile phones and Apple Pay so Greenlight’s average age of kids that parents are signing up is 12. The most common story they hear is that as soon as kids get their first mobile phone, they start to be more independent, spending more time with their friends without their parents, and that’s when families start running into the problem that Greenlight solves. Cash can be an unreliable way to track how your child is spending that allowance. Did they go to the campus bookstore or the candy store? Studies show 86 percent of parents use cash as the primary way to give their kids money but would prefer a better solution. The great thing is that their biggest competitor is actually cash which can be lost or stolen and it’s dangerous to leave too much with our children. In addition, parents don’t have visibility into where their kids are spending the cash they’ve been given which limits a parent’s ability to provide them teachable moments. How long before it reaches Australia? by David Hamilton Introducing the First Debit Card for Kids palmbeachfn.com.au February 2017 First National Palm Beach 15 Palm Beach Ave Palm Beach, Queensland 4221 Phone: 07 5559 9600