Greenlight, Mastercard Debut College Savings Credit Card

Family-centric FinTech Greenlight has unveiled the Greenlight Family Cash Mastercard, a credit card designed to help parents save for their children’s education and other future expenses.

According to a news release Tuesday (May 17), the company’s Family Cash Card is Greenlight’s first credit card to offer up to 3% unlimited cash back on each purchase, with an option to invest rewards automatically.

“Families today have an increasing amount of expenses, making it difficult for many to save for the long-term,” said Tim Sheehan, co-founder and CEO of Greenlight. “With the new Family Cash Card, parents can get the most out of everyday spending and invest towards big life events like their children’s college education.”

The company pointed to its recent national survey that showed that just 22% of parents use credit card rewards for long-term saving, despite nine out of 10 parents saying they wished they had more money set aside for their children’s future. Meanwhile, 68% of parents reported having little to no savings for their children’s future.

That survey also found that 70% of parents were anxious about saving for their children’s college education, ranking it as their top savings goal for their kids.

See also: Family Finance Segment Booms Amid Rising Competition To Serve Cash-Free Kids

Based in Atlanta, Greenlight provides an all-in-one money management platform with the mission of of helping parents raise financially-smart children. In addition to the new credit card, it offers a debit card and a companion app.

In an interview with PYMNTS last year, CFO Brian Dong said Greenlight offers a digital vehicle for spending so that kids don’t have to carry cash, as well as a platform that helps young financial consumers get a head start on learning about spending, saving and investing.

“We want to give the kids who use our products, whether it’s the app or the debit card, a great experience, but then also give parents the right tools to bring kids into becoming consumers of financial services or just consumers and purchasers of goods in the right way,” Dong said. “And our intent is to grow with them as they grow.”