Goldman was born into a Jewish family in New York City, the son of Lillian (Levy), a hat model, and Julian Goldman. Goldman's father was a Broadway producer, and owned a chain of well known eastern department stores called The Goldman Stores, and as an early pioneer of "time payments", his business thrived. Franklin Delano Roosevelt was a close friend and also his attorney. Goldman Store ads typically featured men in business suits and fashionably dressed women in furs. While this was an old strategy for appealing to those with dreams of upper-class status, the ad copy explicitly addressed middle-income customers. "He makes only $3,000 a year," blazoned one Goldman ad, "But is worth $112,290!" Julian loved the theatre, and was an "angel" or backer, to many Broadway Shows and reviews. His young son, Robert "Bo," accompanied Julian to an average of two shows a week. This influenced what the boy would choose to do later in life, convinced from an early age that he was meant to work in the theatre. In 1939 Julian was looking for a school where he could send his son. Eleanor Roosevelt admired the work of Helen Parkhurst and was in the midst of expanding the population and resources of the Dalton School by promoting a merger between the Todhunter School for girls (founded by Winifred Todhunter). Julian Goldman became an early backer, and it was this school where Bo would begin his education. He followed this by skipping his last year at Dalton in favor of fast tracking through Phillips Exeter Academy, an experience that informed a script he would write years later, Scent of a Woman.
Goldman is not related to William Goldman, another two-time-Oscar-winning screenwriter who won the Academy Award for All the President's Men the year after Bo won for One Flew Over the Cuckoo's Nest.
He attended Princeton University where he wrote, produced, composed lyrics and was president of the famed Princeton Triangle Club, a proving ground for F. Scott Fitzgerald, James Stewart and director Joshua Logan. His 1953 production, Ham 'n Legs, was presented on The Ed Sullivan Show – the first Triangle production ever to appear on National Television.

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