Sunday, January 19, 2020

Educating Your Kids About Money Could Be One of the Best Finance Solutions For Your Family's Future

Educating Your Kids About Money Could Be One of the Best Financial Solutions For Your Family's Future
Financial literacy seems to be a thing nowadays which is actually good. People are starting to become aware of the importance of saving money for their future. Unfortunately, It wasn't like this during the 80s or even the 90s.


Saving Money Wasn't My Priority 

When I was young, I wasn't introduced to saving money. I don't remember my parents telling me to save. All I remember was them telling me to study hard. So as I was growing up, I did good in school, but I didn't do good on how I spent my allowances. I just spent away all my school allowances on clothes, expensive food, and expensive coffee.

When I started working in my 20s, I used my salary and bonuses on buying useless stuff like game consoles, booking on hotel staycations, and shopping. I did however tried to start investing in a mutual fund, but I wasn't able to sustain it thinking that it wasn't my priority at the time especially since I didn't have a stable job. This is part of my life that I really wish I could turn around. Now that I'm a mom, I wanted to change the way my kids think. I want them to value their earnings and how to save money at the earliest age possible.

My Son is Ready for a Savings Account

Last December, my son received plenty of 20s and 100-peso bills as a gift from his godparents and relatives. I asked him, "Do you want to use your money to buy some clothes or toys in SM?" He firmly said, "No." I also noticed that he did not spend a single peso from his earnings since last year. I was like, "Wow! When I was a kid, I wish I was as disciplined as him."

A little background about my son. He's not a big fan of food and he's not the type who wants to have new clothes or shoes all the time. He just asks me to buy what he needs and that's it. His ultimate "luho" would be a cellphone of his own (which was given to him as a gift from his aunts last Christmas) and a professional yoyo which costs around 500 pesos. I guess that's one big factor why he doesn't spend his money because he already got what he wanted. So as for his earnings, instead of just putting it in a box in a drawer, I thought it's time for him to open his own bank account.

The Best Kiddie Savings Account

So we want to open a savings account for kids. The next question is which bank do we go to? I did some research online and I found a list of banks that offer kiddie accounts. According to Smart Parenting, here is a list of banks to check out (in no particular order):

Maybank Yippie Savings Account

  • Initial minimum balance: Php 500
  • Maintaining balance to earn interest: Php 5,000 (0.250% P.A.)
  • Passbook and ATM (which you can use at any Maybank ATMs in Malaysia, Singapore, Cambodia and Brunei free of charge)
  • Free personal accident insurance 24 hours a day, 7 days a week with coverage equal to 5 times the previous month’s ADB or up to a maximum of Php 500,000.
  • Free medical reimbursement benefit equal to 10% of the personal accident insurance coverage.

Metrobank Fun Savers Club

  • No initial amount required for opening
  • Passbook only. No ATM card
  • A welcome gift upon account opening (thermal bag)
  • Free educational trust benefit worth P50,000 (with minimum ADB requirement of Php 4,500)
  • Free personal accident insurance worth twice the ADB, not to exceed P1 million (with minimum ADB requirement)

PS Bank Kiddie and Teen Savers

  • No minimum balance required 
  • Average daily balance to earn interest : Php 2,000
  • Passbook only (ATM card upon request)
  • Free personal accident insurance from Charter Ping An Insurance Corporation which is equivalent to five times (5x) the monthly average daily balance.

Equicom Kiddie Builders Savings Account

  • Initial deposit required and maintaining balance: Php 500
  • Amount required to earn interest: Php 1,000 (1% P.A.)
  • Entitled to free dental and medical benefits from Maxicare when account balance reaches Php15,000.00
  • Maximum withdrawal limit of up to three (3) times within a month

RCBC GoSavers

  • Minimum initial deposit: Php 100
  • Minimum Annual Deposit Balance to earn interest: Php 5,000
  • Passbook & Debit card
  • Free Sun Life Grepa Comprehensive Insurance Package (Requirement: Minimum initial deposit or 6-month ADB of P10,000 )
  • Accidental Medical Reimbursement: Coverage: 10% of PA (Maximum of P5,000)

BDO Kiddie Savers Club

  • Initial amount required to open: Php 100
  • With passbook and debit card (debit card given when deposit amounts to Php 2,000)
  • Minimum balance to earn interest: Php 2,000 (0.25% P.A.)

UCPB Start2Save Junior Savings

  • Initial deposit : Php 100
  • Minimum ADB to earn interest: Php 1,000
  • Passbook and ATM

East West Kiddie Savings Account

  • Minimum initial deposit: Php 2,000
  • Maintaining ADB: Php 2,000 (0.125% p.a)
  • Passbook only

China Bank Savings – Easi-Save for Kids

  • Minimum maintaining balance/initial deposit: Php 500
  • Minimum balance to earn interest: Php 500 (.25% P.A.)
  • Passbook only

Sterling Bank of Asia – Neo Savings Account

  • Initial Deposit: Any amount
  • Amount Required to Earn Interest: P2,000 (0.375% P.A.)
  • Own Passbook & Visa Debit Card

Security Bank Junior One Account

  • Initial deposit: Php 100
  • Minimum balance to earn interest: Php 5,000 (.5% P.A.)
  • ATM Mastercard
Other banks without info on their website:

  • BPI Jumpstart Savings

Opening A Metrobank Fun Savers Club

So considering the benefits plus the convenience of the location of the bank, we have decided to open a Metrobank Fun Savers Club. We went to our nearest Metrobank branch and approached the New Accounts agent. She only asked for a copy of my son's birth certificate to open an account plus the initial deposit. She didn't ask for a picture or anything else. I filled up the forms and then my son signed the documents and the signature cards required. In just about an hour, my son has a Metrobank Fun Savers Club account!

Metrobank Fun Savers Club
Metrobank Fun Savers Club
We received a free thermal bag, a passbook, and a notepad. I actually thought we were going to receive an ATM card, but it seems we only get a passbook for this type of savings account. Plus, I also thought we were going to have discount stubs or something to their merchant partners, but it seems there's none.

Okay, We Have Opened a Savings Account. Now What? 

Now, we plan to sustain that savings account. For every penny that my son receives, he will deposit it in his newly opened account. I also plan on pitching in a few hundreds every payday to help him with his savings. It may seem like a small thing now, but in 5 years, he will be 17 years old or in 10 years, he will be 22 and he will definitely need some money to use for his expenses such as buying his own place like a condo or start his own business. Wouldn't it be nice if he has his own money to use instead of pestering us, his parents, to pay for his needs?

After 10 years, it is possible that I might not work as actively as today so I may not be able to sustain my kids financially, but if my kids are financially ready by having their own money to use and learning how to use them well, then educating them early about money is definitely one of the best finance solutions for every family that would benefit their future.

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