December 13, 2024
A new initiative helps children develop practical money management skills.
According to the November 2024 report Moneyzine74% of teens feel they lack financial literacy, but almost all respondents say they want to to learn The report also found that Gen Z and Gen Y had the lowest levels of financial literacy among US generations.
Bank of America has created a tool to help bridge that gap.In September, the financial giant launched the SafeBalance Banking® for Family Banking initiativedeveloped digital platform to teach children about money management.
“Family Banking offers young people the foundation they need to manage money, with support for parents looking to help their children on their path to financial health and independence.” Mary Hines Drosch, head of consumer, business and wealth management banking and lending products at Bank of America, said in a press release.
Parents: can be opened SafeBalance Banking® for Family Banking account for children under 16. They can set spending limits and receive notifications; children cannot overdraft these accounts.
Holly O’Neill, president of Retail Banking Services at Bank of America, says teaching kids how to budget and save early prepares them to make healthier financial choices , that their parents only use cards to pay for purchases, so teaching them how to do it manage debit card is an important life lesson.
“Less than half of kids feel prepared when they go to college, but parents feel a responsibility to make sure they’re ready to succeed. So the combination of the two, getting them earlier and having parents partner and take a hands-on approach with family banking connected, were really the driving force behind our design,” said O’Neill. WCJB News.
The SafeBalance Banking® for Family Banking account has no monthly maintenance fees allows parents to add their child as an account ownerand the account then transferred to a traditional bank account.
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