Advocates celebrate new law allowing foster youth, emancipated minors to open bank accounts

Foster youth and emancipated minors in Indiana are now able to open their own bank accounts without parental consent. One advocate said the new law will help many teenagers learn how to manage their money.

Maggie Stevens is president and CEO of Foster Success. Stevens said it's important for teenagers to learn how to budget and manage money. But that can be difficult for foster youth who may not have a trusted adult to cosign on their accounts. Stevens said the new law will help teenagers on their path to independence.

"I think that again, when you have the ability to manage your funds, that is, the first step to kind of that independent adulthood that we all want," Stevens said.

READ MORE: New law opens opportunities for qualified foster, emancipated youth access to bank accounts
 

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The bill was first introduced to the House during the 2024 legislative session, but it didn't get a committee hearing. Lawmakers passed HEA 1441 earlier this year.

The issue was brought to Rep. Chris Campbell (D-West Lafayette) — one of the bill's authors — by a foster youth who talked about their experiences in foster care and having a bank account.

In order to open an account, foster youth must receive consent from a juvenile court judge. The qualified youth would also be responsible for all bank-related costs and accrued penalties associated with their account.

Timoria is our labor and employment reporter. Contact her at tcunningham@wfyi.org.