New BofA account allows parents to help kids learn healthy financial habits

BANK OF AMERICA CORP. recently unveiled its SafeBalance Banking for Family Banking solution, a new bank account allowing parents to help their children practice healthy financial habits and learn to manage their money. / AP FILE PHOTO/ELISE AMENDOLA

CHARLOTTE, N.C. – Bank of America Corp. recently unveiled its SafeBalance Banking for Family Banking solution, a new bank account offering parents the tools and resources they need to help their children practice healthy financial habits and learn to manage their money through a convenient, secure digital experience, the bank announced.

“For many parents, it can be hard to find the right financial tools and resources that can also instill positive financial habits in their children,” Mary Hines Droesch, Bank of America head of product for consumer, business and wealth management banking and lending, said in a statement. “Family Banking offers the foundation young people need for managing money, with support for parents seeking to help their children on the path to financial health and independence.”

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The Family Banking account follows the company’s SafeBalance Banking account, which was initially offered in 2014. SafeBalance Banking, which has no overdraft fees, has grown to nearly 7 million accounts – including more than 3 million accounts held by youths and young adults – as of this past August and now represents nearly two-thirds of all new consumer banking accounts opened at Bank of America, the bank said.

Ninety percent of parents believe they bear responsibility in teaching their children financial literacy and 61% say they start talking to their kids about money by the age of 10, according to a recent Bank of America survey.

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“Designed with the whole family in mind, Family Banking offers the convenience and safety features parents seek, along with knowledge-building tools that will help set their children up for a strong financial future,” Holly O’Neill, Bank of America president of retail banking, said in a statement.

The Family Banking account can be opened via online banking or in the mobile app and allows parents to maintain oversight of their child’s spending and to supervise the account.

Key features of SafeBalance Banking for Family Banking include:

  • Financial literacy resources: Easy-to-understand Better Money Habits educational resources help parents have personal finance conversations with a child.
  • A child’s first debit card: When a child is ready for their first experience managing money or budgeting, parents can give them access to a physical or digital debit card.
  • Flexible parental controls: Daily spending limits, card lock/unlock features and real-time alerts act as guardrails and help teach responsible financial management.
  • Monthly maintenance fees waived: SafeBalance Banking for Family Banking has no monthly maintenance fees while the child is under age 25.
  • Account graduation: As a child’s needs become more advanced, parents can add them as an owner to the account when they determine a child is ready.

Family Banking recently launched in Rhode Island, Connecticut and Maine, with access being expanded to additional states over the next three months, leading up to nationwide availability in December, the bank said.

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