Kids are collecting debit cards these days


September 17, 2019

Hustle Logo

Today, pissed-off GM workers take a strategic day off and butt-wipe businesses bet premium TP will pay off, but first…

The Hustle Daily Email

Thanks to credit cards for kids, lunch money is an interesting subject again

Capitalizing on the idea that it’s never too early to teach children about money, a slew of startups is offering kids access to cold, hard plastic.

Greenlight got greenlit… by Series B investors

The fintech startup just hauled in $54m from big-money players including Drive Capital, JPMorgan Chase and Wells Fargo. Founded in 2014, Greenlight is a card/app combo that lets kids spend and save independently… under parental supervision.

It works like this: Junior gets a preloaded debit card and a companion app that lets him check balances, set savings goals, ask the ’rents for more money, and receive alerts when said money lands. 

Parents get an app of their own to check in on the kid’s spending, schedule recurring allowance payments, make one-time deposits, set limits on spending categories and — if little Icarus flies too close to the sun — shut the whole thing down. Fees are $5/month.

And there are plenty of other companies digitizing the piggy bank

Backed by Spanish bank Banco Sabadell, a startup called Mitto makes a similar product designed to teach Generación Zeta financial literacy: The company has 150k registered users and a waitlist of 80k more.

In the UK, kid card issuers include GoHenry or Osper. And back in the US of A, Current and Step are giving Greenlight a run for its, er, money.

The kids are all right… or, at least, not worse than you were

Surveys show that many a Boomer has bailed out an adult child — and now that those adult children are having children of their own, they’re looking to help their progeny be smarter about spending.

Although early iterations of the kid card were viewed as potentially predatory, recently launched kid cards have been careful to include educational resources related to personal finance, investing, and charitable giving in their apps.

But what about the Tooth Fairy?
Share on Facebook Share on LinkedIn Share on Twitter View in Browser
 

Meet Hustle Con speaker Amy Errett, founder of Madison Reed

The hair-coloring market is expected to reach $29B this year, with 52% of customers opting to dye at-home over expensive salons. For Hustle Con speaker Amy Errett those are stats to root for. 

Amy is the founder and CEO of Madison Reed, a beauty startup helping millions of women — and men — find the right shade. Learn how Amy’s journey to the top spot of hair dyes started after she read an ingredients panel in our latest speaker profile

We are all dyeing to know →

The UAW’s first strike in more than a decade could cost GM $100m a day

Yesterday, 46k members of the United Automobile Workers (UAW) union went on strike at General Motors.

It’s the first UAW walkout since 2007, and it could have a big impact — both on GM and its partners. Here’s what you should know.

Workers at 30 factories in 10 states say GM has been greedy

The UAW also represents employees who work at Ford and Fiat Chrysler… but the union specifically chose to attack GM for prioritizing profits over ’ployees. Over the past 3 years, General Motors made $35B — but last year the automaker closed 4 factories.

The UAW demands GM improve wages, reduce the pay gap between new and existing employees, and reopen an Ohio factory that recently closed.

On the other side of the picket line, GM has offered $7B in investments in US plants, 5.4k new jobs, and salary and benefit increases.

So far, the 2 sides are stuck in a gridlock. 

Now what?

Experts predict that GM’s profits will drop by between $50m and $100m each day the strike continues (shares in GM dropped 4% yesterday).

But striking workers will feel the pinch, too: Workers are still paid during the strike — but only strike wages of $250/week.

Past UAW strikes have lasted as long as 3 days. 

But the size of these strikes has decreased over time as union membership has fallen: The UAW represented 177k GM employees in a 1996 strike; 73k in a 2007 strike; and fewer than 50k this year.

GM’s grumpy
The Hustle says…

If you’ve ever sold a Bitcoin just to finance your coffee habit, you need to stop spending and start brewing. Our Email Ops Specialist Kaylee swears by this Primula Cold Brew Brewing system. Mmmm, frugality.

If you want primo vino for bargain prices, check out Last Bottle. Today’s deal? A killer Cabernet Sauvignon for just $8. Tannin-tastic.*

If you’re carrying credit card debt (and aren’t we all?), The Ascent suggests transferring your balance to this 18-month 0% APR card. You can pay down your total without accruing any interest — not too shabby, if we do say so ourselves.*

*This is a sponsored post.

The rent is too damn high… So some SF businesses are buying their own buildings

Earlier this week, Bay Area Rapid Transit (BART), the screechy public transit system that serves the San Francisco metro area, announced a $227m plan to buy an office building of its own rather than pay a 60% rent increase that its landlord demanded.

So, rent prices are really that bad near San Francisco, huh?

Yes — the trend of buying buildings didn’t start with BART: A number of other businesses across the Bay Area have also bought their buildings in order to save big bucks. 

Here’s how much a few of the biggest buyers have spent — in San Francisco alone — on their buildings:

  • Salesforce: $637m 
  • Juul: $397m
  • Zynga: $228m

And in Silicon Valley, tech giants like Google, Facebook, and Apple have spent billions building their own corporate campuses.

Buying buildings is a good deal for businesses…

And not just because it helps them avoid paying rising rent costs.

Businesses that own their own buildings also have the added benefits of being able to brand their buildings, control security, and install giant, branded ball pits… ok, just kidding on that last one (… we think).

Companies can also make money by leasing out extra space to other tenants, or even flipping their buildings: Zynga sold the office it bought in San Francisco for $228m for a whopping $600m.

Unicorns don’t rent

Toilet paper startups are waging a war of the wipes… and their marketing is on a roll

Inspired by other direct-to-consumer businesses that have made fortunes delivering everything from razors to toothbrushes, several startups are rolling out a new direct-to-consumer category: butt wipes.

That’s right: Fast Company reports that the booty-beautifying business is booming thanks to the growing number of toilet paper startups that are trying to tear some squares from the world’s TP titans.

These companies are building a ‘farm to toilet’ experience  

What does that mean, you ask? Most of these startups make sustainable toilet paper — often made from either recycled pulp or bamboo and advertised as “tree-free” — and then sell it to consumers via subscription (rolls cost as much as $3, compared to less than $1 for Charmin).

And, of course, they market it with slick, minimalist design elements and fancy fonts. 

Here are some of the new butt-wipe brands — and their most memorable marketing:

  • Bippy: “Want to be butt buddies?” and “Earth friendly butt stuff”
  • Tushy: “I know what you skid last summer” and “Turn your restroom into the best room”
  • Number 2: “95% less butt crumble”
  • Peach: “Designed to delight, our motif is tastefully embossed in a light pastel on every sheet”
  • Who Gives a Crap: “Good for your bum. Great for the world”

But don’t expect Big TP to turn the other cheek

The toilet paper business is a $31B industry that’s dominated by Rear-End Royalty — massive brands like Charmin, Scott, and Quilted Northern.

For years, these Barons of Backside have sold their toilet paper as a commodity, which drove costs — and quality — down.

But these rump-wiping rookies may have found the crack in Big TP’s — ahem — business model… and if consumers prefer these well-made wipes, Charmin and the gang may have to start pushing some premium paper.

2 can ply that game
SPONSORED

10% is a failing score

That applies to calculus tests, driving exams, and especially life insurance coverage. 

So, when we found out that most companies only offer 10% the amount of coverage that most families need, we got the unprepared-for-test-day cold sweats. 

*Gulp*

Lucky for us, Policygenius is here to help 

In less time than it takes to cry over that impending D+, Policygenius’ user-friendly platform can help you compare and select life insurance plans that will fully protect you and your loved ones. 

The result? 10x the standard amount of workplace life insurance, taking your coverage score to a cool 100% — plus, no gaps in protection when switching jobs. 

Hey, not all of us can nail calculus (numbers are tricky, okay?). But life insurance… now that we can do.

Easier than math
Share The Hustle

Refer coworkers, get free stuff

Step 1: Peek our sweet, sweet rewards

Step 2: Click “Share The Hustle” below

Step 3: Share The Hustle.

Step 4: Collect rewards, rinse & repeat.

Ambassador Rewards How did you like today’s email?
love it
meh
hate it

Now Playing Now Playing:
Peach Fuzz, Caamp.
[%Count%] Share the Hustle
REFERRALS
[%URL%]
YOUR UNIQUE URL
Conor Grant
Conor Grant
MANAGING EDITOR
Bobby Durben
Bobby Durben
AD WRITER
Meg Furey-Marquess
Meg Furey-Marquess
MEDIA STRATEGIST
Brad “Tree-Free TP for Me” Wolverton
HEAD OF CONTENT
Phillip Antopitov
Chief Bartender
SUBSCRIBE JOBS ADVERTISE EVENTS SHOP
Facebook Instagram YouTube
You opted in by signing up, attending an event, or through divine intervention. 251 KEARNY ST. STE 300, SAN FRANCISCO, CA 94108, UNITED STATES415.506.7210 Never want to hear from us again? Break our hearts and unsubscribe
The Hustle

Daily briefings, straight to your inbox

Business and tech news in 5 minutes or less

Join over 1 million people who read The Hustle

Psst

How'd Bezos build a billion dollar empire?

In 1994, Jeff Bezos discovered a shocking stat: Internet usage grew 2,300% per year.

Data shows where markets are headed.

And that’s why we built Trends — to show you up-and-coming market opportunities about to explode. Interested?

Join us, it's free.

Look, you came to this site because you saw something cool. But here’s the deal. This site is actually a daily email that covers the important news in business, tech, and culture.

So, if you like what you’re reading, give the email a try.