As parents, we want to give our children the best headstart in life. One way we can do that is by teaching them about money early on.
Financial literacy isn’t just about teaching children how to use their money wisely but also about how to save money. Providing them with bank accounts is one of the best tools for this.
Let me explain why our kids should have a bank account as early as possible.
Effectively Teaching Kids the Value of Money
It may be challenging for kids to learn how to manage their money like a pro right away, but opening a savings account for them is a great way to start.
While piggy banks may seem like a good option, having a bank account for them makes it feel more official and less childish. By entrusting them with managing their money, you treat them like adults, even if they are not. Teach them savings through hands-on experience and make them watch their savings grow over time so they will understand the value of patience and foresight in managing money.
The Impact of Long-Term Saving
One thing we wish we had learned earlier as adults is that it’s never too early to start saving. It’s beneficial not only for your kids but also for you as a parent.
Although school might seem a long way off, it doesn’t hurt to start preparing immediately. Not only will it benefit us in the long run, but the impact of telling our kids that we are preparing for their future education beforehand can be significant. It teaches them about setting long-term goals, such as buying a car or a house or planning for retirement. Whatever skills we instill in our children should be practical ones they can carry for life.
Creating a Safety Net
Life is not always linear. It could throw us into a curve without warning. For that reason, it’s essential to prepare our kids for the unexpected. Having their own savings accounts while they’re at a young age provides them a safety net. We should teach them to set aside a portion of their allowance for unexpected expenses. By doing this, we can help them become more financially responsible and better prepared for whatever life throws their way.
Explore these bank options offering savings accounts for kids:
BPI:
Product: Jumpstart
Age limit: 10 to 17 y/o
Initial deposit: PHP 100
Minimum maintaining balance: PHP 1000
Minimum balance to earn interest: PHP 2,000
Interest rate: 0.25% p.a.
Perks/Benefits: Debit card, Waived required minimum balance, Non-withdrawable min balance, Viewable via BPI app
BDO:
Product: Junior Savers
Age limit: 0 to 12 y/o
Initial deposit: PHP 100
Minimum maintaining balance: PHP 100
Minimum balance to earn interest: PHP 2000
Interest rate: 0.0625% p.a.
Perks/Benefits: Passbook, Debit card
UnionBank:
Product: First Savings
Age limit: At least 7 y/o (younger children can open an account via parent/legal guardian)
Initial deposit: PHP 100
Minimum maintaining balance: PHP 100
Minimum balance to earn interest: PHP 5,000
Interest rate: 0.10% p.a.
Perks/Benefits: Visa debit card, viewable via UnionBank app
Security Bank:
Product: Junior One
Age limit: 18 years old and below
Initial deposit: PHP 100
Minimum maintaining balance: PHP 5,000
Minimum balance to earn interest: PHP 5,000
Interest rate: 0.0675% p.a.
Perks/Benefits: Online account opening, Passbook, Mastercard debit card
RCBC:
Product: GoSavers
Age limit: 0 to 21 years old
Initial deposit: n/a
Minimum maintaining balance: PHP 500
Minimum balance to earn interest: PHP 500
Interest rate: 0.125% p.a.
Perks/Benefits: Passbook, Debit card
PSBank
Product: Kiddie and Teens Savings
Age limit: 0 to 12 for Kiddie Savings account, 13 to 17 for Teens Savings Account
Initial deposit: None
Minimum maintaining balance: None
Minimum balance to earn interest: PHP 2,000
Interest rate: 0.1% p.a.
Perks/Benefits: Passbook, ATM, Free personal accident insurance from AXA Philippines
Metrobank:
Product: Fun Savers Club
Age limit: 0 to 17 years old
Initial deposit: PHP 500
Minimum maintaining balance: PHP 500
Minimum balance to earn interest: PHP 4,000
Interest rate: 0.0625% p.a.
Perks/Benefits: Free personal accident insurance for parents
PNB:
Product: MyFirst Savings Account
Age limit: 7 to 19 years old
Initial deposit: PHP 0
Minimum maintaining balance: PHP 0
Minimum balance to earn interest: PHP 5,000
Interest rate: 0.1% p.a.
Perks/Benefits: No initial deposit, No maintaining balance
EastWest:
Product: Kiddie Savings
Age limit: n/a
Initial deposit: PHP 2,000
Minimum maintaining balance: PHP 2,000
Minimum balance to earn interest: PHP 2,000
Interest rate: 0.125% p.a.
Perks/Benefits: Passbook, Low balance to earn interest
Maybank:
Product: Yippie Savings Account
Age limit: 12 years old and below
Initial deposit: PHP 500
Minimum maintaining balance: PHP 500
Minimum balance to earn interest: PHP 5,000
Interest rate: 0.25% p.a.
Perks/Benefits: Visa debit card, Free personal accident insurance up to PHP 500,000, Visa debit card
Financial awareness is not only crucial for our children’s future, but it is also a vital lesson in resilience and planning ahead― a few of the many skills that are handy in life as they grow up.
As a developing country, many citizens do not have access to banking services. It is important that we educate our children on the privilege of having access to these services and teach them to appreciate it.
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