Bank of America has created a digital solution for parents looking to teach financial responsibility to their children.  

Ninety percent of parents responding to a recent Bank of America survey said “they feel responsible for their children’s financial health and setting them up on the right foot,” Mary Hines Droesch, head of product for consumer, business and wealth management banking and lending at Bank of America, told Bank Automation News.

The study by the $3.3 trillion bank also found that 53% of college students do not feel prepared to handle real-world finances, she said.  

Filling the gap

To fill this financial education gap, Bank of America announced its Family Banking solution on Sept. 26, a bank account designed for children between the ages of 6 and 15 that offers parental controls and resources to help children practice responsible saving and spending, Hines Droesch said. 

Clients seeking ways to discuss finances with their children and give them hands-on experience “was really the genesis of the innovation work that we did around family banking,” she said. 

The Family Banking account, which is live to Bank of America clients in Connecticut, Maine and Rhode Island and will be fully rolled out in December, offers: 

• Fully digital onboarding: Parents can link the new account to their existing account in minutes. 

• Parental controls: Parents can modify daily spending and withdrawal limits in real time. 

• Account graduation: When a child is ready for their own account, with parent permission, the family account can become a fully functioning account with the same account number.  

• Financial education: Account holders have access to the bank’s Better Money Habits online resource center which offers presentations, videos and workbooks to coach parents on how to have conversations with their children about financial responsibility.

In-house innovation

The in-house solution was a yearslong effort, Hines Droesch said, and was built on the bank’s existing SafeBalance Banking platform. This was in response to clients who asked for a digital solution integrated into a familiar banking experience.  

Bank of America joins other institutions that have invested in family banking capabilities: 

• JPMorgan Chase offers its Chase First Banking debit card for kids designed for kids ages 6-12. 

• Capital One offers its kids savings account which offers linked accounts to parents, automatic savings and no minimums or fees.