Financial education-focused FinTech Greenlight has launched a collaboration with Google.
The partnership, announced Wednesday (Aug. 7), connects Greenlight’s debit card to Google’s Fitbit Ace LTE, a smartwatch designed for kids, letting them learn to “spend wisely” and tap to pay with their watches.
“At Greenlight, we’re always looking for new ways to help parents raise financially smart kids and teach them healthy financial habits,” said Tim Sheehan, co-founder and CEO at Greenlight. “Teaming up with Google to integrate Greenlight into kids’ smartwatches allows us to bring families even more peace of mind and convenience as their kids become more independent.”
According to a news release, the partnership is designed to give kids a way to practice smart spending and financial independence without using a phone or physical card, while parents gain the peace of mind that their children have safe and easy access to funds as needed.
“Using the Greenlight app, parents can also send money instantly, automate allowance payments, manage chores, set flexible spending controls, get real-time notifications, and more — empowering their kids to learn smart money management,” the release said.
The collaboration comes at a time when many teenagers in more prosperous countries — such as the U.K. and U.S. — are lagging in financial literacy.
Although more than two-thirds of students routinely use financial products and services, levels of financial literacy are too low to make sure they can avoid financial risks, the Organization for Economic Cooperation and Development (OECD) said in June after releasing the latest installment of its financial literacy assessment.
That study looked at the financial skills of 15-year-olds in 14 OECD and six partner countries and economies and found that while many of them engage in basic financial activities from a young age, nearly 20% did not achieve baseline proficiency levels in financial literacy.
And research by PYMNTS Intelligence shows that many consumers want more financial expertise, and often turn to financial institutions (FIs) for guidance, with many younger consumers being unaware of things such as their credit scores.
“This may not be surprising, considering that 79% of Gen Z and millennials say they get their financial advice through social media,” PYMNTS wrote recently. “Only 11% say they use financial advisers to get the direction they need.”