In 2018 Missouri legislation was passed to allow youth ages 16-17 in the legal custody of Children’s Division to open a bank account without a co-signer.  This legislation enhances Children’s Division’s efforts to implement the “Reasonable and Prudent Parent Standard,” to reduce the systemic barriers which keep youth from participating in enrichment activities and life skill development opportunities comparable to their peers who aren’t in care. 

Because youth in legal custody of the Children’s Division experience challenges in developing long term supportive relationships with trusted adults, they are less likely to have an appropriate co-signer when opening a bank account.  The experience of managing a bank account when youth begin working or handling their own money is an important developmental experience which can help prepare them for independence as adults.  This statute and policy ensure that being in the legal custody of Children’s Division is not a barrier to the opportunity of having a bank account and provides protocol for Children’s Service Workers with youth seeking to open a bank account. 

Per RSMo 431.056, youth ages 16-17 in the legal custody of Children’s Division may open a checking or savings bank account with the consent of the Children’s Division or the Juvenile Court without a co-signer, and “The minor shall be responsible for paying all banking related costs associated with the checking or savings account and shall be liable for any and all penalties should he or she violate a banking agreement. No state department, foster parent, or entity providing case management of children on behalf of a department shall be responsible for paying any bank fees nor liable for any and all penalties related to violation of a banking agreement.”

When a qualifying youth wishes to open a bank account, the Children’s Service Worker must provide a signed consent letter CD-277 verifying that they are in legal custody of the Children’s Division.  This letter will be presented by the youth to the banking institution where they wish to open a bank account.  A paper or digital copy of the letter should also be placed in the youth’s record.      

The Children’s Service Worker should also ensure that education is provided to the youth about the various types of accounts available and the risks associated with banking, and give the youth the “Checklist for Opening a Bank or Credit Union Account” published by the Consumer Financial Protection Bureau.  For youth who are enrolled in Chafee Services, and applying for a bank account, the Children’s Service Worker should identify and add financially related goals to the youth’s Adolescent FST Guide and Individualized Action Plan.  Examples of banking related goals can be found in the Casey Life Skills Resources to inspire on pages 34-35. Additional financial empowerment training can be found on the ELC.    

A letter of consent should be provided to the youth upon request unless there are documented physical or mental conditions which would prevent them from entering into other legal contracts. In this case, the Children’s Service Worker and their immediate Supervisor shall meet with the Regional Director/Designee for further consultation.  The youth shall be notified of a final decision and rationale by the Children’s Service Worker.  Documentation of the final decision and rationale should documented in the youth’s record. 

Related Practice Alerts and Memos:

8-26-19 – CD19-53 – Youth Bank Accounts

10-17-19 – PP19-CM-05 (Youth Bank Accounts CD-277