The differences between the Greenlight card vs. a bank debit card
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Key takeaways:
Greenlight is a parent-managed debit card designed for kids and teens, with educational tools and spending controls.
Traditional bank debit cards offer basic spending features with limited parental oversight.
Greenlight is ideal for teaching financial literacy; traditional debit cards serve general banking needs.
Greenlight can also be a helpful tool for older adults in the sandwich generation managing finances for both kids and aging parents.
Teaching kids how to manage money is easier than ever these days. Often, you can choose to open a bank account for a minor with a traditional debit card or utilize one of many digital money management apps that come with debit cards for kids, like Greenlight, the #1 family finance and safety app.
But, as a parent, how do you choose the right option? Here, we break down the differences between a traditional bank-issued debit card and the Greenlight debit card for kids to help your family make the right choice.
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Quick comparison: Greenlight vs. bank debit cards
Here’s a quick breakdown of the key differences between the Greenlight debit card and a traditional debit card:
Feature | Greenlight | Traditional debit card |
Age range | All ages | Generally age 13 and up for a child’s account with a parent or guardian |
Parental controls | Yes | Limited |
Number of cards | Up to 5 cards per family plan | Typically one card per joint account holder |
Direct deposit | Yes | Yes |
Fees | Starts at $5.99/month | Varies by bank, may be free or have associated fees |
Cash back/rewards | Up to 1% cash back^ and up to 6% on savings** | Less common for minor accounts, but some banks may offer it |
FDIC insured | Yes*** | Yes |
What is a traditional bank debit card?
A debit card connects directly to a user’s checking or savings account, allowing them to use it for purchases and to deposit and withdraw cash from a physical bank or ATM. It’s not designed for any particular age group and usually does not come with any specific parenting features.
Key bank debit card features:
Direct access to bank account funds, so the transaction amount is immediately deducted.
ATM access to withdraw cash, deposit checks or cash, transfer funds, and check your account balance.
No interest charges on purchases like a credit card, since you’re using your own funds.
Security features like chips and PINs to protect against unauthorized transactions and fraud.
Self-imposed budget management since you can only spend the money that’s in your account.
Some banks may offer additional rewards or fraud protection benefits.
What is a Greenlight card?
Greenlight’s debit card functions in much the same way as a traditional debit card but comes with loads of features designed specifically for kids, teens, and older adults. Parents can set flexible controls, get real-time notifications, and turn their child’s card on or off in the app. Kids and teens can also receive money quickly, whether that’s directly from their parent or from friends and family through their Greenlight pay link.
Key Greenlight card features
Earn up to 1% cash back1 on every purchase, deposited straight into savings
Approve money sent from friends and family via pay link.
Real-time notifications and balance tracking right in the app, so you can monitor your child’s money activity.
Choose where and how much your kids can spend, adjusting the controls as they grow.
Chore and allowance tracking to let you assign recurring or one-time tasks and pay them directly through the app when they’re completed.
Savings options that allow kids to set savings goals and rounding up on purchases to save automatically.
Parent-paid interest to help motivate them to save.
Educational content like Level Up™, a best-in-class financial literacy game.
Options for the sandwich generation with Greenlight Family Shield, which allows caregivers to manage both their kids and their senior loved ones’ finances.
Both you and your kids download the Greenlight app — with tailored experiences. They check off chores, you automate allowance. They spend wisely, you set flexible controls. They build healthy financial habits, and you cheer them on.
6 ways a Greenlight debit card is different from a bank debit card
Now that you know the main features of both a traditional debit card and a Greenlight debit card, let’s highlight the ways Greenlight is different.
All ages can use a Greenlight debit card
Greenlight is designed specifically for minors under a parent’s supervision. Unlike most traditional banks, which typically require a child to be at least 13 years old to open a joint checking account with a parent, Greenlight can be used by kids of nearly any age. And, with Greenlight Family Shield, you can even add senior loved ones4 to your Greenlight account, so that you can have oversight over your entire family’s finances and safety right in one app.
Greenlight debit cards feature granular parental controls
With a Greenlight debit card, parents can set spending limits, block spending at specific merchants or within specific categories, and receive real-time spending notifications every time the card is used. Traditional bank debit cards generally lack these features, often limiting parents to freezing the account or setting general transaction limits.
Greenlight debit cards can be customized
Greenlight lets kids customize their debit card with any photo or design they want, making smart spending even more fun. From selfies to original artwork, kids get to choose a one-of-a-kind card to carry, just like them.
Kids can split their money into different buckets easily
Greenlight offers Spend, Save, and Give buckets within the app to teach kids the importance of saving—and charitable giving—early. Kids can also set specific savings goals outside of their general savings. Typically, traditional banks usually only offer checking and savings accounts tied to debit cards.
Greenlight starts with a low monthly fee
While Greenlight does have a monthly subscription fee, starting at $5.99 a month for the Greenlight Core plan, there are absolutely no overdraft fees for debit cards, plus you get access to a robust suite of educational and safety features tied to the debit card. Bank fees can vary, depending on the type of bank and account, but may include monthly or overdraft fees on their debit cards.
Greenlight debit cards are secure
Both Greenlight debit cards and traditional bank debit cards include FDIC insurance and zero-liability protection. But, Greenlight gives parents more control than the typical bank debit card, like the ability to turn cards on and off, monitor transactions in real time, block unsafe merchants and categories, and set spend limits.
With a debit card of their own, kids and teens learn to spend wisely, keep an eye on balances, and track their spending. Big money dreams? Set savings goals and start investing with as little as $1 — with your approval on every trade.
Is Greenlight or a bank debit card better for your family?
When deciding between a Greenlight card vs. bank debit card, it’s important to think about what’s best for your family.
Greenlight is great for helping kids develop money management skills and financial literacy with tools like chores and allowance management, parental controls, real-time alerts, and family safety features. It’s a great option for families looking for a debit card for kids that includes an integrated app experience that provides educational lessons, games, savings goals and even investing options for parents and kids.
But, you might decide that opening a traditional bank account for your teen is the way to go if you prefer a simple, straightforward approach to banking for teens who may need less parental oversight and educational features.
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By: Brad Goldbach
Brad Goldbach is a writer focused on financial education, parenting, and tech. He brings over five years of journalism experience and a 12-year background in finance, including time as an advisor. At Greenlight, he’s written extensively on topics like investing for kids, credit building, and family budgeting. Married and a girl dad of two, Brad spends his free time reading, playing board games, and heading out on family hiking adventures when it’s not too hot in the Florida sun.
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