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Growing up, my parents taught me the importance of money through saving. Every year, with the hongbao money I collected, my mom would bring me to the bank to deposit my savings. Every year, my mom and I would deposit my hongbao money at the bank. Watching my passbook balance grow, along with the interest earned, was satisfying, even though I couldn’t touch it—at least not until I got my own ATM card in tertiary school.
By saving these small amounts, my parents didn’t just give me a growing bank balance; they taught me an essential lesson about financial discipline. This habit stayed with me and I am still a disciplined saver today.
As a parent now, I believe it’s crucial to teach our children valuable money lessons. However, managing money involves more than just saving. As my kids grow, I’ve realised they also need to understand how to spend wisely and to grow their savings.
Learning Important Lessons About Money In A Cashless World
While saving, spending and investing are timeless principles, how we teach these lessons has changed in today’s cashless world. With digital payments, our traditional methods for illustrating the value of money have evolved.
Consider our weekly grocery trips or booking a ride – no physical money changes hands; instead, we pay with a credit card or tap our phones. For our children, the daily practice of counting cash and calculating change is largely lost. In fact, it can take time for them to connect that tapping a phone or card still means spending real money.
A recent experience with my daughter highlighted this. She misplaced her wallet at school, but when asked if she needed money, she said no. She had been using her ez-link card for meals. To her, the idea of needing “money” wasn’t relevant because, in her mind, an ez-link card was all she needed.
As the world becomes cashless, we must change our approach to teaching our children about money. We need new ways to explain the value of money and help them understand that whether it’s through physical cash or electronic payments, it’s all part of managing their money.
Let Our Child Manage Their Own Savings Account
Today, most of us keep the bulk of our money in savings accounts, but the money there is no longer just for saving. The accounts are used to manage expenses, pay bills and make investments.
For children to learn valuable lessons about money, they need the opportunity to manage their own savings accounts. Giving them this responsibility early helps them track savings, appreciate the value of money and build lifelong financial habits.
Introducing Standard Chartered’s First$aver Account
One savings account that parents could consider for their child is the newly launched Standard Chartered First$aver Account.
Designed specifically for youths under 18, this account is an excellent way to help instil good saving habits in our children while teaching them basic financial literacy.
Opening a First$aver account in our child’s name gives them a sense of ownership over their money and helps teach them the value of saving. It’s an effective way to show that the earlier they save, the better their financial future will be. To facilitate this learning, the First$aver account has no monthly service fee on the account and no annual debit card fee so there are no costs involved. Parents also have parental oversight on the account so they are aware of what’s going on.
A Dollar Saved Is (Worth More Than) A Dollar Earned
One of the key lessons they’ll learn is that saving isn’t just about putting money aside—it’s about watching it grow. With an interest rate of up to 3.00% p.a. (on your first S$50,000 deposit balance), our child can see how their savings increase, showing them how money can work for them when managed wisely. This helps them understand compound interest and reinforces the importance of delayed gratification and long-term thinking.
As they grow older, it’s also important for them to learn how to spend wisely. With First$aver account, when our child turns 13, they can be issued a debit card, allowing them to make their own cashless purchases. They’ll also enjoy 1% cashback on eligible spending (capped at S$60 per month), introducing them to the concept of how to maximise spending. This helps them understand that wise spending is just as crucial as saving.
Financial Independence with Peace Of Mind
As parents, it’s natural to worry about online banking for our children, especially with the risks of scams or overspending. In today’s digital age, cyber threats are common, and we often hear of adults falling victim to scams. Naturally, we fear for our children navigating online banking without fully understanding these dangers.
With First$aver account, parents can feel reassured that their children are starting their financial journey with safeguards in place. While the account empowers our child with financial independence, it also allows parents to monitor and guide them every step of the way.
Lower Transaction Limits: One key safety feature of First$aver account is the lowered transaction limits, capping daily spending and fund transfers at S$100 each. This gives parents peace of mind, knowing that their children are not at risk of overspending or making large, impulsive transactions. It’s a smart way to encourage financial independence while ensuring kids remain within safe spending boundaries.
Simplified Online Banking Service Access: SC Mobile allows children to access mobile banking, helping them learn to manage their money by viewing transactions and making digital payments through features like PayNow or Scan & Pay. Meanwhile, parents maintain full oversight and control over the account, ensuring secure monitoring of their child’s transactions.
Money Lock Feature: Money Lock safeguards our child’s savings by providing an extra layer of protection, ensuring that funds remain secure and inaccessible to unauthorised transactions. It also acts as a way to help our children continue saving while still ensuring they don’t accidentally spend more than they are allowed to since savings in the account are “locked”.
Start The Financial Literacy Journey Early
With these safety measures in place, First$aver account is the ideal account to help our child begin their financial journey responsibly, with us as their guide. In fact, it’s even more dangerous for our children to grow up without understanding how to manage money in a digital world.
By starting early with First$aver account, our child will develop essential financial literacy skills and money habits, preparing them to navigate future financial challenges confidently and safely.
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