From Piggy Bank to Family Banking: BofA Launches New Solution to Help Parents Raise Financially Savvy Kids

Rhea-AI Summary

Bank of America (NYSE: BAC) has launched SafeBalance Banking® for Family Banking, a new solution designed to help parents support their children's financial education. This account offers tools and resources for parents to teach healthy financial habits and money management through a secure digital experience.

Key features include an intuitive digital interface, financial literacy resources, a child's first debit card, flexible parental controls, and no monthly maintenance fees for children under 25. The account is initially available in select states, with nationwide availability expected by December.

A Bank of America survey found that 90% of parents believe they are responsible for teaching financial literacy to their children, with 61% starting these conversations by age 10. The new Family Banking solution aims to address this need, offering a foundation for young people to manage money with parental support.

Positive

• Launch of SafeBalance Banking® for Family Banking to help parents teach financial literacy to children
• No monthly maintenance fees for account holders under 25
• Expansion of SafeBalance Banking to nearly 7 million accounts, including 3 million youth and young adult accounts
• SafeBalance now represents nearly two-thirds of all new consumer banking accounts opened at Bank of America

Negative

• None.

Only 47% of college students feel financially prepared for the "real world"

CHARLOTTE, N.C., Sept. 26, 2024 /PRNewswire/ -- Bank of America today announced a new solution to help parents support their children as they begin their financial journeys. SafeBalance Banking® for Family Banking is a bank account that offers 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.

"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," said Mary Hines Droesch, Head of Product for Consumer, Business and Wealth Management Banking and Lending at Bank of America. "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."

A recent Bank of America survey found 90% of parents believe they bear responsibility in teaching their children financial literacy and 61% start talking to their kids about money by the age of 10.

"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," said Holly O'Neill, President of Retail Banking at Bank of America.

Family Banking can be opened via Bank of America online banking or the mobile banking app and allows parents to maintain oversight of their child's spending and supervise the account. Key features include:

• Intuitive digital experience: Allows a parent to open and add a child to an account, and offers an age-appropriate banking experience
• Financial literacy resources: Easy-to-understand Better Money Habits educational resources help parents have personal finance conversations with a child
• 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 launched today in select states (Connecticut, Maine, Rhode Island), with access expanded to additional states over the next three months, leading up to nationwide availability in December. The solution allows parents to open a banking account for their child and will expand to include other enhancements next year. The account is geared toward parents with children under the age of 16.

To learn more about Bank of America's resources for parents and their children, visit www.BetterMoneyHabits.com/Family.

10 Years of SafeBalance Banking

Initially offered in 2014, SafeBalance Banking is celebrating its 10-year anniversary. This convenient, easy-to-use account has no overdraft fees and was designed to help clients manage their day-to-day finances. As of August 2024, SafeBalance Banking has grown to nearly 7 million accounts — including more than 3 million accounts held by youth and young adults. SafeBalance now represents nearly two-thirds of all new consumer banking accounts opened at Bank of America.

Bank of America

Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 69 million consumer and small business clients with approximately 3,800 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 58 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock is listed on the New York Stock Exchange (NYSE: BAC).

For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.

Reporters May Contact:
Don Vecchiarello, Bank of America
Phone: 980.387.4899
don.vecchiarello@bofa.com 

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SOURCE Bank of America Corporation

FAQ

What is Bank of America's new Family Banking solution?

Bank of America's new Family Banking solution is SafeBalance Banking® for Family Banking, a bank account designed to help parents teach their children financial literacy and money management skills through a secure digital experience.

When will Bank of America's Family Banking be available nationwide?

Bank of America's Family Banking is expected to be available nationwide by December 2024, after initial launches in select states.

What are the key features of BAC's SafeBalance Banking® for Family Banking?

Key features include an intuitive digital experience, financial literacy resources, a child's first debit card, flexible parental controls, and no monthly maintenance fees for account holders under 25.

How many SafeBalance Banking accounts does Bank of America (BAC) currently have?

As of August 2024, Bank of America has nearly 7 million SafeBalance Banking accounts, including more than 3 million accounts held by youth and young adults.