Bank of America has introduced a family banking product designed to give parents greater control over their children’s spending. Initially available in three states, the product will be rolled out nationwide by December. The new account, aimed at parents with children under 16, provides a debit card for kids and offers digital banking access that allows parents to monitor and manage their child’s financial activities.
The account allows parents to set spending limits, control ATM withdrawals, and receive real-time alerts on their child's transactions. As children grow older, parents can add them as co-owners of the account. The product also includes educational resources to teach financial literacy.
Bank of America developed this product to cater to the needs of families in an increasingly digital banking environment. Digital transactions, unlike cash, give parents valuable insights into their children’s spending habits, making it easier to initiate conversations about budgeting and responsible spending.
The bank plans to enhance the product by adding more features in the future, including restrictions on specific spending categories and the potential to expand into savings and investment options. While other banks and fintech companies have launched similar products, Bank of America opted to develop its own solution to integrate seamlessly with existing services, ensuring clients have a familiar and secure experience.
By introducing this family-focused account, Bank of America aims to establish early relationships with younger generations and grow with them as they become future clients. The bank believes its size and capabilities offer an advantage over fintech competitors, although it remains open to partnerships for future developments.
