WILMINGTON — On the 10 year anniversary of the Safe Balance Banking account, Bank of America is rolling out a new option for families in Delaware to help kids and young adults learn how to become more confident in managing money.
Launched in November, the Safe Balance for Family Banking account offers a child’s first debit card to build skills in budgeting or money management but with flexible controls to give parents peace of mind. These accounts can graduate to more advanced settings when a child ages, including more digital access to make online transfers through Zelle. There are no monthly fees for account holders under 25, and only $25 is required as an opening deposit.
Bank of America has already seen millions of customers use the Safe Balance Banking account — which includes features like “Keep the Change,” where account holders can opt to round up purchases and deposit the difference, and no maintenance fees for young account holders.
But the financial institution saw an opportunity in a market where more than ever, parents are working to navigate teaching the children the basics of spending and saving money. 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.
That weighed against Bank of America’s data from the Safe Balancing accounts in the last decade made it clear what the next product should be. With seven million Safe Balance Banking Accounts, about 3 million are held by those under 18 and young adults.
“Two-thirds of all of our new consumer banking accounts offer these features, and what really makes it stand out among the competition is the lack of fees, the digital functionality and the access parents can have to make changes to an account when it’s appropriate,” Bank of America Mid-Atlantic Consumer Banking Executive Christina Murphy told the Delaware Business Times.
With Safe Balance for Family Banking, parents can open accounts for children through Bank of America’s website or smartphone application, and set the restrictions remotely – including when their children can make withdrawals, set spending limits or use a digital wallet. That has helped put clients at ease, especially in this digital age where kids of all ages can easily catch on how to use those apps.
“We had a six-year-old who had a debit card through this and they were able to navigate digital banking very quickly. I talked to a lot of parents, and I think that parent was surprised at how quickly they figured that out,” Murphy said. “They did feel good about the restrictions to help them save for a toy.”
“It can be shocking to see how quickly kids adapt to technology, but it’s the world they’re growing up in,” she added.
In a world where more than half of U.S. consumers bank through smartphone apps and financial literacy programs becoming more phased out of high school and colleges across the nation, Bank of America also sees the Safe Balance for Family Banking account as a possible window to reach the next generation. The financial institution is also offering account holders access to its Better Money Habits program, which include worksheets and articles on issues like mortgages, investing, loans and more.
With the Safe Balance for Family Banking account, Bank of America customers can also access worksheets to help guide families to talk about how money works and spending now versus spending for the future.
“Family banking really does offer all these tools within their fingertip to help parents educate their child. Our clients have said they want to help because their children may be coming out of school without learning about budgeting, credits and homeownership. If they don’t take the time to teach them, it’s not something they’re really learning, and we aim to help solve that,” Murphy said.
Bank of America first opened the Safe Balance for Family Banking to clients in Connecticut, Maine, Rhode Island with a gradual plan to open access nationwide by December. The account is available to Bank of America customers in Delaware today.
