Direct deposit for teens and how to help them with their first paycheck

First job, first day, first paycheck. Icing on the cake: Helping your kids get their first paycheck sent directly to their Greenlight account. 

As you know, more money = more responsibility. That’s why it’s important your teens learn to budget and plan how they’ll spend their regular paychecks. It’s awesome they’re starting to earn money, and it’s an even sweeter deal with a banking app to keep their earnings all in one place (ahem, Greenlight)*. Before their first paycheck hits, let’s learn how to help them manage it.

Enter direct deposit for teens

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During Week 1 on the job, your teens will be asked how they want to get paid. It’s a great time to introduce them to direct deposit. Direct deposit is when their paycheck goes directly and digitally to their account. That means no physical paper checks. When it’s time for your teens to choose how they want to get paid, you can help them set up direct deposit right in the Greenlight app. 

Why direct deposit? 

More than 93% of U.S. workers get paid via direct deposit. Wondering why direct deposit is a popular option? Here are a few reasons: 

• It’s easy. 

Remember when pay day meant a trip to the bank? 🤯 With Greenlight’s direct deposit, your teens’ paychecks will go straight to their “Spend Anywhere” balance. (More to come on how they can manage that cash flow.)

• It’s reliable. 

They’ll love this one. With direct deposit, your teens can count on getting paid on time, every time. It doesn’t matter if they’re out of town or sick on pay day — their hard-earned money will still hit their Greenlight account on time.

• It’s all in one place. 

In the app, your teens can track how much money they’re making from their job, how their savings are coming along and see how investments are doing. All 👏 in 👏 one 👏 place 👏

How to keep the paycheck in check 

Now for the fun stuff: helping your teens figure out how to budget their income. You may have talked about the 50/30/20 rule (50% ➡️ needs, 30% ➡️ wants, 20% ➡️ savings). Or, you may have your own rule to share. When you’re ready to talk about it, remember all the ways they can manage their money to reach their goals: 

• Set savings goals

• Invest 

• Spend on needs

• Give to charities 

• Keep saving (and earning 3% on savings**)

You’ve got working teens — you must be so proud. Stick around in the app for more tips and tricks to make the money convos easy (and fun).

*Greenlight is a financial technology company, not a bank. The Greenlight app facilitates banking services through Community Federal Savings Bank (CFSB), Member FDIC.

**Greenlight and Greenlight + Invest families can earn monthly rewards of 2% per annum and Greenlight Max families can earn 3% per annum on an average daily savings balance of up to $5,000 per family. Only Greenlight Max families can earn 1% cash back on spending monthly. To qualify, the Primary Account must be in Good Standing and have a verified ACH funding account. See Greenlight Terms of Service for details. Subject to change at any time.