Dad, Mom, Me: How Family Banking Helps with Budgeting and Savings

Domestic banks, as well as the country's financial market as a whole, continue to adapt to the changing demands of Russians, offering new concepts and products. One of the notable trends in recent years has been the development of family banking. Readmore about the approach, which offers a range of financial solutions for simple and effective management of the family budget - in the material of Izvestia.

For the whole family

Family banking as a concept appeared in the last century. Credit organizations began to develop this niche to meet the needs of each member of the family: the young were relevant loans for education and the beginning of independent life, the older members of the family - investments and insurance.

In essence, family banking is a service model that takes into account the interests of the family in managing its finances. It is an ecosystem focused on each member of the "unit of society" throughout their life journey, as well as support in meeting basic needs.

Family banking came to Russia in 2018. At that time, an amendment to the law came into force, which authorized the opening of joint accounts, rather than simply issuing additional cards to a single account. SBI Bank was one of the first in Russia to offer tools for family banking. It developed the program "Your Circle" - a joint family account with analytics of expenses.

- Government policy aimed at supporting families with children has also become an important factor in the relevance of family banking in Russia. Such initiatives create prerequisites for the development of banking solutions focused on the needs of parents and their children," says Grigory Misonochnikov, a financier and personal finance specialist.

Opportunities and advantages

Family budget is a complex mechanism: regular expenses, taxes, housing and utilities services and children's clubs, mortgages and other loans, savings, safety cushion and much more. All this must be taken into account to manage your finances competently. According to experts, it is more convenient to do it with the help of family banking. Modern family banking involves the use of services through a website or application.

- Family banking is a system of products and services that allow members of one family to jointly manage their finances," says Grigory Misonochnikov. - Among the popular solutions are: joint accounts, which provide transparency of expenses; cards for children, which can be used to control spending and teach financial literacy; savings programs, which allow collecting funds for common purposes, such as education or buying a home, as well as offers to protect the older generation from fraudsters.

Family banking is an opportunity for customers to keep a common budget, save money, carefully control expenses, and for banks - an opportunity to attract new customers, including through the issuance of children's cards

Financial expert Svetlana Petrova considers family banking a promising direction.

- The main advantage of family banking is its comprehensive approach. Instead of considering the financial flows of each family member separately, family banking offers a single solution to optimize all aspects of money management, - comments the expert. - This includes individualized offers on deposit, pension planning, savings, investments and expense control. Also an important part of this approach is financial education for children, which shapes their attitude to money and spending from an early age.

Cards, discounts and cashback

Not many banks in Russia offer "family" services yet.

- Family banking in Russia is still at the stage of active formation, but it is already showing significant potential. Major players offer adapted solutions for family clients," says Grigory Misonochnikov. - Technological development also contributes to the popularization of family banking. Tools such as expense analytics, payment reminders and mobile applications for family budget management make these products convenient and accessible.

For example, the "Family Bank" service was introduced in VTB in 2023, and this fall customers have the opportunity to create a group and invite up to five relatives to it. At the same time, users can add not only family members, but also friends, colleagues or even neighbors - no proof of kinship is required when adding to the group. Also, group members do not see each other's funds, which helps maintain privacy. Each member receives an increased deposit rate on new deposits. Other bonuses include 60 days of free VTB Plus subscription, discount on insurance and VTB Mobile. Also, any member of the family group, in addition to the main categories of cashback under the loyalty program, can choose an additional category of cashback of 5% on "Supermarkets".

The Alfa-Bank Family Account can be used by two or more family members, and up to 10 cards can be linked to the account. With this service, you can keep a general history of purchases and see how much each family member spends and on what. Spending is recorded automatically, which makes it easier to analyze income and expenses. Setting a spending limit will help you control your budget: you can distinguish between personal and general spending to avoid impulse purchases.

T-bank clients can also open a joint account for their relatives to keep a common budget, plan regular payments and make savings. "Share" their account with the family can also Raiffeisen Bank customers. Its owner can also set access levels: viewing or plus the ability to make payments and transfers.

According to Svetlana Petrova, the use of family accounts facilitates the decision-making process, helping to avoid unnecessary conflicts and misunderstandings related to finances.

- In addition, combining finances into one stream can bring certain benefits in the form of cashbacks and loyalty programs, which can become a significant item of income," the expert emphasizes.

According to Vladimir Lavrov, head of the department "Development of packages and subscriptions" VTB, family banking has already become a recognized practice around the world, as it allows you to effectively manage the family budget and lays the foundations of financial stability. Whereas in Russia this area was previously offered only to wealthy clients, now, thanks to the development of technology, it is available to everyone.

- Clients can already open joint accounts, order additional cards and participate in common investment programs. Special attention is paid to improving financial literacy among children: thanks to special cards, children can pay for purchases on their own and learn to save money. Many banks develop lessons and tests on financial literacy to prepare children for responsible money management," explains Vladimir Lavrov.

The expert emphasizes that family banking is gradually becoming an important part of Russia's financial ecosystem, offering customized solutions for each family's needs. In the future, this trend will help families achieve global financial goals thanks to offers from banks and the help of personal investment managers.

A new trend as a necessity

Family banking in Russia is not only a new trend, but also a necessity dictated by the needs of the time. Convenience, transparency and focus on long-term goals make this format attractive to more and more families, says financial expert Svetlana Petrova. In the conditions of government support and technological progress, family banking, in her opinion, has every chance to take an important place in the lives of Russian families, helping them not only to solve financial problems, but also to build a more stable future.

Grigory Misonochnikov is confident that the popularity of family banking will grow as families begin to realize its benefits. One of the key factors of success will be increased financial literacy.

- Family products not only help manage money, but also teach children the basics of financial responsibility. Children's cards, virtual piggy banks and saving tasks stimulate the formation of skills that will be useful in the future," says the expert.

He also believes that in the coming years, banks will actively develop product lines aimed at families: these can be both savings and investment solutions, as well as favorable conditions for mortgages or educational loans.