With features embedded directly in accounts, parents can more easily prioritize financial literacy and money management skills for their kids
With the youngest members of Gen Z hitting their teenage years and Gen Alpha coming up right behind them, raising financially literate kids is a top priority for parents. Money management is so vital that financial institutions are expanding the range of products to serve the whole family. “I’m calling this the Golden Age of Family Banking,” says Lierin Melvin, Comperemedia in the Financial Brand. Not only are banks and credit unions expanding products for everyone in the family, institutions are doubling down on their commitment to fiscal education at the same time, providing rich opportunities to deepen banking relationships. Melvin says, “Developing brand equity through family banking is going to pay dividends moving forward.”
At the end of 2024, Bank of America launched a new family-focused account, featuring no-overdraft fees and features like spending limits on debit cards and real-time alerts for parents to monitor transactions. “This is primarily focused on serving the needs of our parents, knowing these children will be our future clients,” says Mary Hines Droesch, the bank’s head of products, in an interview with Banking Dive. Bank of America is far from the only financial institution offering family banking products. “A number of banks and fintechs, from Chase and Capital One to Venmo and Greenlight, are angling to serve parents and children as banking and payments have become increasingly digital, and cash is used less frequently,” according to Banking Dive.
No longer are financial literacy and money management found in separate silos. Banks and credit unions are now embedding features directly in accounts. That’s why Greenlight’s partnership program has exploded to more than 75 banks and credit unions. The fintech has made its debit card and money management app the center of its offering, with platform features including allowance automation, saving goals, parental controls, and spending alerts. Earlier in 2024, US Bank announced a partnership with Greenlight to complement their “Bank Smartly” accounts to provide “kids and teens with invaluable money management experience while parents enjoy time-saving convenience and peace of mind.”
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