The need for financial education at younger ages is by now well-documented, and certain states—Rhode Island for instance—have developed curriculums for public schools to incorporate money matters into their teaching.
For parents that want to do more at home, Greenlight Financial Technology, a fintech company “on a mission to help parents raise financially-smart kids,” announced Greenlight Max, what it says in the first educational investing platform designed for kids.
In 2017, the company launched a parent-managed debit card and app for kids to teach money management skills and now claims to serve more than 2 million parents and kids, who have collectively saved $90 million. With the launch of Greenlight Max, the company is “now shining a light on the world of investing for parents and kids alike.”
The difference in the amount of retirement assets for a worker who begins saving at age 25 versus age 35 is roughly $1 million, so anything earlier can only help.
Investing is key to building long-term wealth, but it is not inclusive or accessible to many. The company noted that there continues to be a widening wealth gap and divide in stock market participation—the wealthiest 10% of Americans own 87% of stocks and mutual funds.
Many adults don’t know how to get started, and kids are not generally learning these critical concepts in school, with only 16.4% of children thus far required to take a personal finance class.
Morningstar research
Kids can research stocks with analysis from Morningstar, learn from a library of in-app educational content, propose investments with parental approval, and track portfolio performance.
Greenlight Max plan also includes upgraded safety features like cell phone, purchase and identity theft protection, and the Greenlight Black Card, along with Greenlight’s suite of core financial tools for earning, saving, spending and giving.
“At Greenlight, we know that financially-smart kids will have happier and healthier lives,” Tim Sheehan, co-founder, and CEO of Greenlight, said in a statement. “Investing is one of the most important pieces of the personal-finance puzzle. That’s why we launched Greenlight Max — so parents can lay the foundation for building generational wealth.”
Greenlight Max is available at greenlightcard.com for $9.98 per month per family, with no transaction fees for investing.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
