Media Release
Kids see the value in saving during the Global Financial Crisis
Kids of the Global Financial Crisis (GFC) are proving a lot more savvy then their Gen Y predecessors as they recognise the value of saving their hard earned pocket money.
Suncorp Bank Executive Manager Deposits & Transaction Products Tony Meredith said the GFC has meant parents are more cautious with their spending and this is being passed down to their children.
"As budgets tighten, many kids are being taught the value of treats and commodities and learning how to make the most of their pocket money," Mr Meredith said.
"Whether its odd jobs around the house or entrepreneurs in the making, kids generally love
to see their money grow."
Rachel Annison's children Chris (eight years) and Nick (five years) are an ideal example of kids learning the value of money through the GFC.
"Our kids learnt about the cost of living as a
direct result of the GFC," Ms Annison said.
"We bought chickens about 18 months ago for them and one day we walked out to find them throwing the chicken feed around, sharing it with not only the chickens, but the pigeons, the magpies and any other bird that noticed the free food.
"Although they found this hilarious, we told them that the food cost money and we couldn't
afford to waste it, so once the chickens started laying eggs, it became the children's responsibility to pay for the food."
Rachel's kids now sell the eggs to friends and neighbours and with the money made, they have to account for ensuring the chickens have enough feed before keeping the profit as extra pocket money.
"Chris and Nick know how much things cost now. When we do the groceries they know that food costs money and doesn't just appear in the fridge," she said.
In addition to making pocket money through the sale of their chickens' eggs, the kids earn money by completing odd jobs around the house.
"They love watching their money grow and usually concentrate on saving for toys and games they spot in the toy catalogue," she said.
Mr Meredith said while piggy banks are a great way to physically see savings accumulate, Suncorp Bank has brought saving into the 21st century with it's online Kids Savings Account.
"It's important for kids to understand that money doesn't just grow on trees and that once you spend it, it's gone," he said.
"Our Kids Savings Account is a fun, interactive way for kids to watch their money grow, with bonus interest, monthly statements and an interactive website (www.suncorp.com.au/kids)
that is proving popular for both kids and parents. There are games for the kids as well as
dozens of fact sheets with tips on how parents can talk to their kids on different money
topics.
"We think it is important to provide parents with the tools to teach their kids about the
benefits of saving."
Suncorp Bank's Kid's Savings Account can be held in a child's name, and has no monthly account keeping fee and is available until the child turns 18 years.
The Kids Savings Account currently offers a rate of 0.75% per annum with bonus interest of 3.00%. This means a combined high interest of 3.75% per annum when you deposit at least $20 and make no more than one withdrawal per month.
Adults may have full access to the account and when the time comes that parents want to
introduce their child to accessing their money responsibly the Kids Savings Account can be
paired with an Everyday Basics Account.
When the child turns 18 the account will automatically convert to a our Everyday Basics
Account, which gives you value for money with access to bank the way that best suits you and has no monthly account keeping fees.
Media Contact:
Sequel Communications, Nicole Marino: 3251 8126 or 0418 222 516.
19 October 2009