ATLANTA, June 27, 2018 /PRNewswire/ -- Greenlight Financial Technology, Inc., creator of the smart debit card for kids, teens and college students, today announced Greenlight kids have saved more than $1 million dollars in their Greenlight Educational Savings Accounts. With the average U.S. household savings rate at 2.8 percent, Greenlight kids are saving 8.4 percent of their money -- triple the national average. In two months, the total amount saved has more than quadrupled to reach $1 million as parents turn to Greenlight to help them teach their kids to be smart about money.
Greenlight is at the forefront of the family finance market with its unique offerings, such as the Educational Savings Account For Kids, Parent-paid Savings Interest and Direct Deposit for Kids. These types of features create convenience and flexibility for families, while teaching kids foundational lessons for a smart and financially healthy future.
$1 Million in Greenlight Savings
Greenlight continues to strengthen its simple and safe solution for families by offering the Educational Savings Account For Kids, which allows parents to set their own interest rate and pay the interest automatically within the child's Greenlight Savings account. Amongst Greenlight Savings users, the average interest rate set by parents is 19.84%. By contrast, the national average interest rate for bank savings accounts is 0.08%, making it difficult to educate kids on the value of compound interest and savings.
"Teaching kids the importance of saving is one of the most important concepts children will learn that can have a real impact on their future," said Tim Sheehan, CEO and Co-Founder of Greenlight. "We're thrilled that kids have already saved over $1MM by using Greenlight Savings, and that parents are using Greenlight's Parent-paid Savings Interest to teach their kids the value of compound interest."
Long-Term Solution to Family Finance
As the U.S. personal savings rate falls, and student loans continue to become a driver of debt, it's important for children to learn the importance and value of saving early on. Greenlight's Educational Savings Account for Kids creates opportunities for teachable moments and provides flexibility depending on the age of the child. Whether it's an 8-year-old receiving their first allowance, or a high-school student getting their first paycheck, parents can set and pay an interest rate that they think will teach their kids best and encourage positive behavior.
As kids mature and their financial needs start to become more complex, Greenlight continues to meet those needs. When kids start earning money from an employer, they can also opt for direct deposit. This feature allows kids to set their paycheck to be deposited directly onto their Greenlight Card. Parents still have visibility into how money is being spent, but kids have the freedom to learn to budget, save, and make financial decisions on their own.
Greenlight's Continued Momentum
Since announcing in March that it hit a critical milestone of 100,000 customers, Greenlight has continued to grow at an unbelievably high rate adding 50% more customers and hitting a new milestone of 150,000 customers. The growth in its customer base is mirrored by the momentum seen with Greenlight's Educational Savings Account for Kids, proving that parents trust Greenlight as a lasting educational partner.
"Since starting Greenlight, we've been on a mission to help parents raise financially-smart kids," said Sheehan. "We're excited to see so many families embrace Greenlight and share with us the positive impact it's having on their kids and preparing them for the future."
Founded in 2014, Greenlight Financial Technology, Inc. is a fintech company that's committed to helping parents raise financially-smart kids. Its groundbreaking personal finance product, Greenlight®, is the world's first debit card for kids with patent-pending technology that enables parents to choose the exact stores where their children can spend. The Greenlight Card is issued by Community Federal Savings Bank, member FDIC, pursuant to license by Mastercard International. The company is headquartered at Georgia Tech's Advanced Technology Development Center in Atlanta, GA, and is backed by leading investors, including TTV Capital, Relay Ventures, NEA, SunTrust Bank, Ally Financial, nbkc bank, Canapi, and the Amazon Alexa Fund.
For more information on Greenlight, please visit www.greenlightcard.com, or follow Greenlight on Facebook, Instagram, and Twitter.
SOURCE Greenlight Financial Technology, Inc.