Parent guide: ATM card vs debit card for kids and teens

"Mom, what's that piece of plastic you use at the grocery store?" "Daddy, why do you use that card at the gas pump?" If you've ever spent time around kids, you've probably fielded questions like these. Questions that send you down a search-engine-enabled rabbit hole. If you're reading this, chances are good you've been asked the "ATM card vs debit card" question. Keep reading to learn about the differences and similarities between an ATM vs debit card.

What is an ATM card? 🏧

An ATM card is a card typically issued by your bank or credit union for the purpose of retrieving money from an ATM. Your ATM card is linked to your checking account. ATM cards usually have a PIN or Personal Identification Number, which is like a password to let you access your account at the ATM. You can use it at either your "home bank" or ATMs at other institutions and public places for a fee. ATM fees can range from a couple of dollars and up, so be sure you read carefully to avoid paying large fees. 

What is a debit card? 💳

Similarly, a debit card is issued by your bank. Like an ATM card, you can use a debit card to receive money from an ATM. Debit cards also have PIN numbers you must enter to get cash out at the ATM. The main distinction is that a debit card can be used at places beyond the ATM, including stores, restaurants, or even online shopping. When you buy a boba tea and swipe your debit card, the money comes from your checking account to pay your "debt," hence the name. 

Similarities and differences for debit cards vs. ATM cards 

It can be tough to distinguish ATM cards from debit cards. Let's start with the similarities:

● ATM cards and debit cards are both typically issued by your bank

● ATM cards and debit cards are both linked to your checking account

● ATM cards and debit cards will both normally require the use of a PIN number

The biggest ATM card vs debit card difference is where you can use them:

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● ATM cards only work with ATMs

● Debit cards can be used for more types of transactions like buying groceries, getting gas, paying bills, or shopping online

What are ATM cards for?

ATM cards are used to give people quick access to cash from their checking accounts. Some parents may prefer ATM cards to debit cards for their kids and teens because of the limited number of places they can be used. A lost or stolen ATM card can't be used either in stores or online. This is an attractive feature for the parent of the teen who has left four lunch boxes at school this month. 

What are debit cards for?

Debit cards can also be used to withdraw money from an ATM, like an ATM card, but that's just the beginning. Debit cards can also be used to shop either in person or online. A debit card will also work at the gas pump. 

Many parents prefer a debit card for the same reason other parents might oppose it: the freedom it offers. For instance, if your teen is driving late at night and needs gas, do you really want them to have to stop at an ATM first? Doubtful. A debit card allows kids and teens to make purchases without having to carry cash. 

Greenlight: The debit card for kids and teens

Greenlight offers a debit card, with many customizable features and a user-friendly app. Greenlight takes a family-focused, educational approach to personal finances that gives you the tools to teach your kids about money.  

Benefits of using Greenlight 👍

Greenlight's debit card offers some incredible benefits to help you guide your kids into the sometimes complicated world of money. The card offers some phenomenal perks for both kids and parents. 

For kids and teens:

● Learn to earn - Through the app, you can set up a system where your kids earn money from you by doing chores around the house. They can then use that "earned money" to spend or invest within your set parameters. 

● Build a budget - Greenlight's approach helps kids learn how to set up and stick to a budget by allowing them to earn and spend in a closely monitored, highly customized manner. The app features easy-to-use balance tracking, which allows your teen to see clearly how they've spent their money. This encourages them to live frugally at a young age, avoiding spending that doesn't align with their goals. 

For parents:

● Customizable spending controls - Greenlight automatically blocks dangerous spending categories, such as wire transfers, massage parlors, or online casinos. Plus, Greenlight allows YOU to restrict the categories or specific places your teen can spend money. So if you've told your teen not to go to Gamestop, and they do it anyway, the card will be declined, and you'll get a notification. 

● Real-time money monitoring - As a parent, Greenlight sends you a notification every time your teen tries to use their debit card, whether it is accepted or declined. This helps you monitor their spending and allows you to enter the conversation when need be. 

● Simple, safe money management - Greenlight allows you to instantly transfer money to your kid's card in a snap, allowing you to avoid the hassle of using third-party money transfer apps. Likewise, your kid's Greenlight card carries Mastercard's Zero Liability Protection and is FDIC insured up to $250,000...though you might want to start them with a lower balance. 😉

How many cards do I get when I sign up? 5️⃣

Greenlight plans include debit cards for up to five kids on one plan starting at $5.99 per month. If you want a customizable card with your kid's picture on the front, there will be an additional one-time $9.99 fee for each customized card. 

How to use the Greenlight debit card

Greenlight's debit card can be used almost anywhere you could use a Mastercard, including both in-person and online. Greenlight does restrict usage, preventing kids from using the card at potentially dangerous places.

ATM access with Greenlight 💸

Your teen can also withdraw available cash from an ATM using their Greenlight debit card. It's important to note that restrictions are in place to prevent kids from spending irresponsibly. As the parent or guardian, you set the amount available in their "any ATM" spending category. Likewise, the card can only be used at an ATM to withdraw $100 per rolling 24-hour period, with a monthly family maximum of $500 per month. 

Greenlight educational features 📚

Greenlight takes an educational approach, empowering you to help your kids or teens learn about personal finance using a combination of well-designed learning tools. 

For instance, Greenlight's Level Up gamified learning so kids can work on their financial literacy without the dreaded threat of boring spreadsheets. The game uses educational challenges and rewards to teach them the basics of personal finance. 

Similarly, Greenlight's Learning Center is a superior online resource for families to learn about the world of money together. Topics are incredibly broad, ranging from the expected finance articles to guides on topics as diverse as cleaning a refrigerator or learning how to drive. The Learning Center even features articles aimed at parents and their finances. Check out "A parent's guide to fun money," which gives the grownups some budgeting principles. If you have questions, chances are good the Greenlight Learning Center has answers. 

App features 📱

Greenlight's app boasts about being "one app with two experiences," meaning kids and parents both log into the same app but use it differently. 

Parents can use the app to turn debit cards on and off instantly with ease. The app also allows you to set controls on your kid's spending and will send you real-time alerts whenever the debit card is used. Similarly, transferring money to your kid's card is simple using the app.   

For kids, the app features a clean and clear dashboard that helps them best understand their own finances. Your teen can use the app to check her balances, build a budget, plan savings goals, and even explore the stock market (with your monitoring, of course). In this way, the app is a unique educational tool that allows your kid to learn in the best way of all: by doing it on their own. 

Sign-up process with Greenlight✍️

Sorry, kids... you have to be an adult to sign up for Greenlight. If you're a parent or guardian, you can sign up for Greenlight here. The sign-up is a pretty easy, three-step process. 

1. Add up to five children to your account. Each child will receive his or her own debit card, though customized cards with their picture on them will cost $9.99 extra. There is no minimum or maximum age limit for debit cardholders. 

2. Verify your identity. This is not a full-blown background check but a confirmation of your identity using your name, address, date of birth, and social security number. This helps ensure the safety of your account. 

3. Set up your Parent's Wallet. You can upload money to this virtual wallet from your own debit card or checking account. Parents are required to upload some funds at startup to help verify the account. It's important to note that this money is still yours even once it enters the Parent's Wallet, meaning you can also use it to pay the monthly subscription fee. 

How long does it take to receive your child’s debit card? 🗓️

Once you've signed up, your requested debit cards are created automatically and should arrive in the mail in 7-10 days. If you need it sooner, say in 2-3 days, that can be arranged for a one-time fee of $24.99. If you plan to opt for speedier shipping, you will need to contact the support team at 888-483-2645 within 12 hours of signing up. 

Looking for a debit card for your child or teen? 💳

"Momma, what's the difference between an alligator and a crocodile?" Alligators are usually less aggressive and prefer fresh water, while crocodiles love salt water and being salty. "Daddy, what's the difference between a frog and a toad?" Frogs have longer legs and like to jump, while toads have shorter legs, so they like to crawl. 

"What’s the difference between an ATM card and a debit card?" A debit card can be used to shop in person or online, to get cash from an ATM, or to get gas at the pump. On the other hand, an ATM card can only be used at an ATM. 

Give yourself a break. Nobody has all the answers. If you want to be ready to answer more questions about debit cards, budgeting, and a dizzying array of other topics, head over to Greenlight's Learning Center for some quick, click-and-learn style education. 

If you want to help your kids learn to manage money in a safe, fun, and responsible way, consider signing up for Greenlight's debit card today! Financial skills equip your kids for a lifetime. 

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

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.