Tools for parents to teach their children about money

(InvestigateTV) — Moneyzine reports that 74% of teens feel lacking in their financial knowledge, but 73% want to learn.

The Consumer Financial Protection Bureau (CFPB) encourages parents to teach their children about budgeting and finance by opening a savings or spending account for children that the parent oversees.

Many banks offer account options for minors. Bankrate has a free guide showing different options and suggestions for parents.

Bank of America (BOA) is one of the banks offering accounts for kids and families. They are unveiling a new initiative called SafeBalance Banking® for Family Banking across the country.

Holly O’Neill, president of retail banking for BOA, said parents can soon set up bank accounts for their children under the age of 16 online or through their mobile app. Parents control the account, set the limits and the alerts, and kids cannot overdraft.

“Less than half of kids when they go to college feel prepared, but parents feel responsible to make sure they’re set up for set up for success,” O’Neill explained. “So, the combination of the two, getting to them earlier and giving parents a partnership and a hands-on approach with family banking really were the drivers to our design.”

She said the point is to teach kids how to budget at an early age. Parents can make it fun, set the rules, and kids learn the value of money, especially how to save it.

“It’s a great way to start with a very simple checking account,” O’Neill noted. “They get their own debt card, which kids as you can imagine are very excited about that, about having their own debt card they can use.”

She said the parental controls allow families to have financial guardrails for their children, while kids get a real time learning experience.

Since most kids only see their parents with cards in their hands, not dollars, O’Neill said teaching kids how to manage a debit card early on is a key life lesson.

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