It is more essential than ever to teach children the value of actual money and how to spend it, and how to preserve it in a world where tap-to-pay and digital wallets are common place. That may seem like a large life lesson, but it may begin with something as basic as their own savings account.
Fortunately, one of the top local banks in Singapore like POSB makes that initial step simple by offering a kids savings account that is specifically made for young savers.
Why Open a Savings Account for Children?
Consider them as financial management training wheels. The purpose of a children’s savings account extends beyond simply storing pocket money. It exposes kids to practical financial practices, such as consistent saving, balance growth, and delayed gratification.
It’s more than simply pennies and dollars. It all comes down to self-assurance, accountability, and establishing a sound financial connection early on.
Why Is This One Unique?
A reputable Singaporean bank you know, the one that’s domestic, tech-savvy, and constantly planning ahead has developed a savings account specifically for kids that meets all the needs of both parents and kids:
No Monthly Charges
Knowing that there are no unanticipated fees depleting their child’s funds gives parents peace of mind.
Minimal Initial Payment
Starting doesn’t cost a lot of money, making it ideal for a child’s monthly allowance.
Get Interest
You may teach your youngster how money can increase over time by showing them that even little balances can yield interest.
Option for a Joint Account
By opening the account together, parents may empower their child while maintaining supervision and control.
Internet-Based Access
Kids may track savings goals, check their accounts with a parent, and feel more involved in the process thanks to digital banking capabilities.
Certain accounts even include a passbook, yes, the old-fashioned kind, which children may use to physically log their withdrawals and deposits.
Flipping through pages and seeing your savings in paper has a surprisingly enchanting effect on a generation who grew up with screens.
What Children Acquire?
- Delays in gratification: That game or object they’ve been eyeing? They’ll discover how to strive for it.
- Goal Setting: Setting aside money for a particular purpose teaches forethought and patience.
- The True Value of Money: Seeing the time it takes to save S$50 makes you appreciate your spending choices much more.
An Example from Real Life
Assume your 8-year-old gets an allowance of S$10 every week. They will have S$260 at the conclusion of the year if they save just half, or S$5, each week. You’ll easily exceed S$500 if you include birthday and Chinese New Year money.
Not bad for a kid in elementary school, isn’t it?
It may not seem necessary to teach your child about money in between school, piano instruction, and weekend excursions.
However, the earlier they learn, the more equipped they will be to handle money and make wise, self-assured judgments in the future.
One little action that can have a big influence over time is opening a kids’ savings account with a reputable local bank.
The goal is to sow the seeds today so they can develop into financially astute adults in the future. And to be honest, nothing is more satisfying than watching your child get enthusiastic about saving money rather than just spending it.
Are you ready to begin? Simply bring your ID and your child’s birth certificate or NRIC. You can even open some accounts online. Easy, simple, and among the best money habits you can develop on.
