Jul 2, 2025

Money – acquiring it and managing it safely and effectively - is causing more household stress now than ever, and not just among parents, but kids too. It’s not a huge surprise to hear this message arising from a recent survey of more than 1,000 full-time working parents of children 8-18. The study was conducted by Greenlight – an Atlanta-based company whose mission is to “Shine a light on the world of money for families and empower parents to raise financially-smart kids” - and its partner Researchscape. 9 out of 10 banks and credit unions say financial literacy is business-critical Also noteworthy from the survey results was the finding that when 256 bank and credit union leaders were asked their views of financial literacy, “93% [said] improving family financial literacy is important to achieving their business goals”. Slightly lower but still substantial numbers (88% and 70% respectively) answered that they have “seen demand for financial education rise” and “received direct customer inquiries about family focused tools” to address these needs. There is a silver lining to this troubling news. Help, in the way of financial education programs, increasingly provided in concert with financial services providers, is coming, or already available to many of those over-stressed parents and children of our latest generations. And for their elders, too. Matt Wolf, chief commercial officer of Greenlight and a veteran of several roles in banking and business development before his three and a half years at the family banking solutions provider, says of the survey’s findings, “I think it’s still concerning […] that, with all the tools available [in financial literacy education] we're still seeing, [among working families], the vast majority have a lot of stress” surrounding money. Wolf also noted that the company’s survey results showed “almost three out of four parents say the most stressful thing that they are running into is financial anxiety.” The problem gets deeper, Wolf said, in that children look to their parents as the “number one source” for financial advice, yet many parents aren’t ready. “They tell us it's among the hardest life skills and most important things that they should teach their kids, but that they don't feel equipped to do so.” Both kids and their parents can profit from proper financial education tools There is an upside though, he asserted, in that both parents and kids “are yearning” for financial education tools, and the company is eagerly partnering with bank and credit union clients to provide them. Financial institutions increasingly recognise that they need not just these tools, but also must “really engage with customers or members in ways that [meet] them right where that next generation is.” Greenlight’s approach is to address the known problem of financial education where it is most relevant and present – through the financial services provider - without putting extra burdens on schools, for example, to take on this challenge. “We have this prime player (bank or credit union) involved that can help them solve that problem. We don't have to rely on the schools necessarily to do things that are outside their core competency.” Schools can’t do the job on their own, so FIs stepping in with new tools Despite the fact that more US states are now requiring financial education as part of standard public-school curriculum, Wolf says more specific, directed help is needed, and financial institutions are seeing the logical fit and opportunity to help deliver that knowledge to their clients. “88% of the FIs (financial institutions) we talk to say that they are seeing this demand, and now the ball is really in their court to help address this problem,” just as they tackle other challenges in the financial lives of their customers, Wolf explained. Greenlight has been successful fulfilling its mission thus far, less than 12 years since its founding, but Wolf and his colleagues see a growing need for financial education beyond the company’s present list of clients. “We have millions of users, and we partner with 150 financial institutions that provide accessibility to this type of content. It's also our understanding that there's more out there,” in terms of both FIs clients and their own customers or members that haven’t yet taken advantage of the services available. Thus, new educational tools are being frequently introduced to keep pace with the fast-evolving financial products and services marketplace. Specific generational approaches and programs help improve success Being flexible and staying current with industry trends is critically important, Wolf says, especially when generational differences in purchasing, banking, and savings habits and expectations are considered. Greenlight has adapted its offering to match the developing needs of the youngest cohort in the financial system, for example adding elements of gamification to the tools they provide. “With those 150 FIs, we are taking our financial education into a game experience called ‘Level Up,” one Wolf said has been “tailored for Gen Z and Gen Alpha.” The company recognises the importance of engaging younger customers and members with relevant approaches that “feed a need and an appetite” and fulfil their specific learning preferences and expectations. Gamification done right works – but not when it encourages or ignores risks Gamification within financial services has thus far offered a mixed bag of new products and services, with some creative ways to save and bank and win rewards being introduced by a number of innovative fintechs and FIs. Unfortunately, the internet has also seen a few very bad ideas promoted by some startups (often well-funded by prominent venture capital firms) that put individuals’ earnings or life savings at risk. Wolf was quick to point out that Greenlight’s approach to gamification is sensible and secure. “We built the best-in-class curriculum, but we broke it into bite-sized fun challenges with videos and games and animation, and really tried to meet users where they are, getting them to develop these habits through a game, but not incentivising actions that [encourage reckless or uninformed behaviour] like purchase this, buy that.” Integrity is very important with financial education, because the absence of it can result in damaging lessons being taught, or learned, by consumers and businesses. In one recent instance, where customers of scores of fintechs of various sizes and flavours depended (mostly unaware) on a specific intermediary company ( Synapse ) and a handful of insured FIs to manage deposit and withdrawal reconcilement activities for their clients, the results were devastating, in some cases tragic. When Synapse declared bankruptcy in April 2024, around $100 million or more in thousands of individual custodial accounts were frozen due to a lack of proper accounting. Now, more than a year later, that case - amid continued wrangling between the Synapse estate, bankruptcy trustee, fintechs with customers ‘caught in the middle,’ and some of the banks holding the money - continues to unwind in court. As you read this, most, but definitely not all of those precious funds on deposit have been returned to their rightful owners. Complex new financial offerings demand higher levels of user understanding Talk about financial education! The Synapse situation revealed a fundamental lack of understanding by most clients of the fintech companies involved of how federal deposit insurance – which is focused on ensuring consumers don’t lose their covered balances up to $250 thousand per qualified relationship – actually works, and has worked, during scores of bank failures managed and mitigated by the FDIC over the past 100 years. In the Synapse case, FDIC and other regulators determined insurance didn’t even apply to individual customers’ losses from the fintech’s failure, much less the long delays many experienced when simply trying to get their money back from the banks involved. That’s because under present FDIC rules a covered financial institution itself had to fail (or be in danger of imminently doing so) for any insurance payments to be made. While reforms were proposed by regulators in late 2024 to force financial institutions to more carefully manage and scrutinise third-party relationships, they’ve gained little traction under the present administration – and wouldn’t provide any extra financial protection to guard against the failures of ‘middlemen’ like Synapse in financial service ‘chains’ anyway. The courts, or some other monetary compensation outside of standard banking circles, offer the only recovery opportunities available to victims of the Synapse collapse. All ages targeted by financial fraudsters, so education is step one for proper use, protection Greenlight continues to grow and promote what Wolf called “a fun, safe way to learn best practices” in financial matters. But that effort is not just about parents and kids anymore. Recently, the company introduced a new product called “Family Shield” to help protect older members of families from fraud and financial predators. “It’s a subscription plan designed to give caretakers the ability to protect their seniors,” said Wolf, “with advanced account monitoring, fraud and identity theft protection.” In concert with its financial institution partners, Greenlight intends to keep improving its educational offerings around teaching ‘the basics’ of banking and saving to younger (and older) users of the platform. As they actively engage with its tools and features, they can progress through new opportunities to learn, earn, and manage money effectively. This is especially critical for younger users, Wolf explained. “Once you've mastered those habits of green lights, core products, and a parent's permission, you can do some of these things, like spend money - although with our parental controls, they can limit where that money is spent.” Investments, and even fractional share trading, are also available to users, but “only with a parent’s permission,” Wolf emphasised. “There’s a time and a place for gamification, but it's not in some of the things that can lead to more destructive habits, which we’ve avoided.”