How to get a debit card for your teen

Have you ever thought about teaching your teen financial literacy? Well, getting them a debit card is a great start. A debit card helps them understand banking basics like spending and tracking account balances. They can use their debit card to buy things they need, even when you're not around. Here's how to get a debit card for your teen.

Should my teen have a debit card?

The first step is deciding whether your teen is ready for a debit card. Here's how it can benefit them.

Convenience

With a debit card, your teen can easily buy the things they want or need, even when you're not with them. They can grab an after-school snack, go to the movies with friends, or buy a tank of gas for their car. You won't need to worry about keeping cash on hand for their allowance or earnings. You can transfer money seamlessly from your bank account.

Build financial independence

A debit card provides a unique opportunity to teach your kids financial literacy skills. They'll learn to monitor their funds and budget for their future purchases.

Unique features especially for teens

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Some debit cards are designed with teens in mind. They include special features such as automated allowance to their card, real-time spending alerts for parents, cash back on spending, and easy ways for others to send them money directly. 

Greenlight's debit card has all of the above and more. Get access to its Level Up financial literacy app that teaches teens the principles of saving, earning, and spending in fun, bite-sized lessons. Level Up’s best-in-class curriculum includes exciting games that encourage your teen to keep learning and reward them when they win.  

Understanding the different types of debit cards for teens

There are two main types of debit cards for teens — a prepaid card or a debit card tied to a bank account. If you go for the first option, a prepaid card, you can preload it with their allowance money or chore earnings. If you’re concerned about your teen overspending their card funds, you can rest easy knowing that prepaid cards automatically decline transactions that exceed the account balance. Most prepaid cards charge a monthly service fee, and you and your teens can monitor their balance and spending patterns through a banking app or website.

If you choose the second option — a debit card — your teen receives the benefits of a prepaid card, plus additional perks like direct deposit. However, most banks require parental permission before opening a teen bank account, and there may be age restrictions. 

Greenlight combines the features of prepaid and debit cards in one package. You and your teen can monitor account activity through our website or app, and there are no hidden overdraft fees to worry about. Plus, you can preload their card with funds whenever you like. 

How to choose the right debit card for your teen

Now that we've covered the basics, let's talk about how to choose the right card for your teen. First, consider their needs. For example, a working teen receiving a regular paycheck may benefit from having direct deposit tied to their debit card, like Greenlight. Parents seeking to boost their teen's financial literacy skills can look for options that offer helpful lessons in personal finance. Greenlight’s app features the Level Up game, which teaches teens the principles of personal finance using short videos, Q&As, and scenarios.

Also, consider the parental controls available. Greenlight’s debit cards include spending caps, which you can place on specific spending categories or stores. You can also use parental controls to approve and deny money movement between accounts. 

Steps to get a Greenlight debit card for your teen

Ready to take the leap? Awesome! Here's how to get your teen their very own Greenlight debit card.

1. Choose your Greenlight plan

Greenlight offers three plans to choose from. Our entry-level Greenlight Core plan allows teens to earn 2% on savings and comes with a debit card and educational app that teaches teens to earn, spend, give, and save. Plus, it includes features for automated allowance and chore-based earnings and parental controls to track their spending. 

With Greenlight Max, teens receive 1% cash back on spending and earn 3% on their savings. They'll receive a debit card and access to the Level Up educational app, just like with the Greenlight Core plan. Plus, teens can use earnings and savings to invest money (with your approval, of course). Greenlight Max includes identity theft protection, plus cell phone and purchase protection. 

With the premier Greenlight Infinity plan, teens get 1% cash back on spending and earn 5% on savings plus all the benefits of the Greenlight Core and Max plans. Greenlight Infinity includes additional safety features, including family location sharing¹, SOS alerts, and crash detection.

2. Create a Greenlight account

To open a Greenlight account for your teens, sign up as a parent or guardian. You can complete the process online — it only takes a few minutes to add up to five kids and teens to your new Greenlight account!

3. Set up your Parent's Wallet

Once you complete the sign-up process, transfer money from your debit card or bank account to your Parent's Wallet. You'll use the Parent's Wallet to fund your teen's account. Your teens can also add their own funds using direct deposit or receive payments from friends and family — with parent approval on each transfer — using Greenlight’s Paylink feature. 

How long does it take to get a debit card?

Greenlight's debit cards arrive within 7-10 business days of opening your account. You can track the shipping status through the Greenlight app. We also offer expedited shipping for an additional fee.

Teaching your teen how to use their debit card responsibly

Once your teen receives their debit card, it's important to teach them how to use it responsibly. Here are a few tips.

Ask your teen to download the banking app²

Greenlight's app includes features to track spending and account balances. Teens can view their personal account balances and transaction history, while parents can view up to five kids’ balances in their app. After making their first purchase, open the app and show them how it impacts their balance.

Encourage budgeting

Your teen will quickly discover there are limits to spending. Help them track their purchases and set a reasonable weekly limit to live within their means. You can create budget categories for saving, spending, and investing. Motivate them to save a percentage of earnings or allowance and watch their balance grow over time.

Use parental controls

Parental controls allow you to set spending controls on certain categories or on specific stores. You can implement parental controls and gradually remove them as your teen gets more comfortable managing their money.

Debit cards can help teens develop financial independence

With a debit card, your teen can learn valuable lessons in financial literacy, like money management. And, when you sign them up for a Greenlight debit card, they can earn cash back on spending and interest on savings. Get started with Greenlight today!

Greenlight + Invest families can earn monthly rewards of 1% per annum, Greenlight Core and Greenlight Select families can earn 2% per annum, Greenlight Max families can earn 3% per annum, and Greenlight Infinity families can earn 5% per annum on an average daily savings balance of up to $5,000 per family. Only Greenlight Max and Infinity 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.

¹Requires mobile data or a WiFi connection, and access to sensory and motion data from cell phone to utilize safety features including family location sharing and driving alerts and reports. Messaging and data rates and other terms may apply.

²Greenlight is a financial technology company, not a bank. The Greenlight app facilitates banking services through Community Federal Savings Bank (CFSB), Member FDIC.