by Jameelah Mullen
December 13, 2024
New initiative helps children develop practical money management skills.
According to a November 2024 report from Moneyzine, 74% of teens feel they lack financial knowledge, but nearly all those surveyed say they want to learn. The report also showed that Gen Z and Gen Y had the lowest financial literacy rates among US generations.
Bank of America has created a tool to help bridge the gap. In September, the financial giant released its SafeBalance Banking® for Family Banking initiativea digital platform designed to teach children about money management.
“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,” said Mary Hines Droesch, head of Product for Consumer, Business, and Wealth Management Banking and Lending at Bank of America in a press release.
Parents can open a SafeBalance Banking® for Family Banking account for children under 16. They can set spending limits and receive alerts; children cannot overdraft these accounts.
Holly O’Neill, president of Retail Banking for Bank of America, says that teaching children how to budget and save early prepares them to make healthier financial choices. O’Neill told the outlet that most children only see their parents using cards to pay for purchases. So, teaching them how to manage a debit card is an important life lesson.
“Less than half of kids when they go to college feel prepared, but parents feel responsible to make sure they’re set up for success. So, the combination of the two, getting to them earlier and giving parents a partnership and a hands-on approach with family banking really were the drivers to our design,” O’Neill told WCJB News.
The SafeBalance Banking® for Family Banking account has no monthly maintenance fees. The “Account Graduation” feature allows parents to add their child as the account’s owner, and the account then transitions into a traditional bank account.
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