It is no secret that teaching your child money management is an uphill task. Most children would want to spend the money they receive immediately rather than saving it for a rainy day. To encourage savings, you need to show them the benefits of saving in a fun manner – and the OCBC Mighty Savers® Programme is a parent’s best partner for this lesson.
Here are 3 simple steps to get your child to save money:
Step 1. Designate a place for their money
Children need to learn where to place their savings. Make it fun by allowing your child to choose his first piggy bank and teach him to put his money in it. Once your child has enough in the piggy bank, visit the bank together to open a bank account under his name and teach him that savings grow when it is invested. Ideally, the lesson becomes so ingrained that it becomes a life-long habit.
When you are deciding on which savings account will be best for your child, remember to look for a financial institution that accepts a low minimum deposit and is kid-friendly. For example, OCBC even offers a priority queue for kids on Sundays at Sunday banking branches. Allowing them to queue on their own makes them feel very grown up – a great way to encourage their growing independence.
Believe it or not, OCBC’s Monthly Savings Account has no minimum initial deposit nor minimum balance to maintain, giving your child the flexibility to deposit and withdraw as needed. Under the OCBC Mighty Savers® Programme, the Monthly Savings Account is a joint account between a parent and child (up to 16 years old) so parents can still oversee account activities.
Step 2. Teach them to set goals for their savings
Saving without a goal is no fun. Translating your child’s desires into saving goals is a perfect opportunity to teach a valuable lesson. If your child has his heart set on a new toy or gadget, encourage him to allocate money to be put aside each month.
Children can learn this through the Mighty Savers® mobile game too! It simulates how money is earned and how it can be used to accomplish a checklist of goals. Download this game now at ocbc.com/mightysavers
Alternatively, specify an amount and timeframe and challenge your child to see who achieves the goal first.
Step 3. Use positive reinforcement
Praise your child whenever he or she saves regardless of the amount. Using positive words and phrases such as “Good job!” or “I like how you’re saving every penny you’ve got!” not only builds self-esteem and inspires confidence in children but encourages them too.
Of course, actions speak louder than words. Why not try this: for every dollar your child saves, offer to match their savings. You may start off with 100 per cent when they are little and slowly decrease the amount as they grow older. Whatever percentage you decide on, always remember to follow through with what you promise them.
To sweeten the deal, let OCBC Mighty Savers® partner with you in rewarding your child through interest. The OCBC Mighty Savers® programme offers as much as 0.80% per annum* (that means per year)!
Allowing them to earn their reward themselves is the best way to reinforce the idea that saving money pays off.
Take the first step today
Find out more about the Mighty Savers® Programme and apply now to start teaching your child the importance of saving money!
*Enjoy 0.40% interest p.a. instead of the normal 0.05% interest p.a. if the minimum $50 deposit is met each month and there is no withdrawal from the account. Plus, if you have a Child Development Account (CDA) with OCBC, you will enjoy another additional 0.40% interest p.a. which brings it to a total of 0.80% interest p.a.
Important notes: The Terms and Conditions Governing OCBC Mighty Savers® Programme and OCBC Monthly Savings Account apply. Please refer to ocbc.com/mightysavers or visit any OCBC Bank branch for a complete set of terms and conditions.
Deposit Insurance Scheme: Singapore dollar deposits of non-bank depositors and monies and deposits denominated in Singapore dollars under the Supplementary Retirement Scheme are insured by the Singapore Deposit Insurance Corporation, for up to S$50,000 in aggregate per depositor per Scheme member by law. Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured.