The Greater is encouraging people to share their tips to help kids to learn to save. Every person who shares a tip on the Greater’s Facebook page using the hashtag #straightforwardbanking goes into the draw for a $100 Life Saver account. Scroll down for full competition Terms and Conditions.
How much pocket money do you give your kids?
With kids back in learning mode at school, the Greater Building Society is giving parents five tips to help them to teach their kids life-long savings habits.
Research conducted by The Greater on 971 customers from regional NSW and South East Queensland with a child aged between 10 and 18 shows parents overwhelmingly (99 per cent) believe they are responsible for educating their kids about banking and saving. The research shows that only less than two thirds (63 per cent) of parents give their children pocket money and just under half (48 per cent) help their kids to open a bank account before they are 10. Kids get an average of $15 pocket money per week.
|Region||Kids get pocket money||Child has bank account?||Parents comfortable with child banking online|
|Mid Nth & Nth Coast||59%||48%||51%|
The Greater's Head of Marketing and dad of three, Matt Hingston said experts agree that encouraging kids to start saving early and giving pocket money are two key ways to help kids to be savers for life. University of Cambridge research for the United Kingdom’s Money Advice Service on habit formation and learning in young children shows that kids’ money habits can often be formed by about the age of seven.
Mr Hingston said The Greater's top five tips for parents to help their kids to save are:
1. Start early
2. Encourage saving
3. Pay pocket-money for doing jobs around the house
4. Show children how to budget
5. Help older kids get a part-time job
“Getting your kids interested in and good at maths is one of the best things you can do too,” Mr Hingston said.
Research by Roy Morgan (January 2015) shows of those Australian children who receive cash at Christmas, 43 per cent of boys and 45 per cent of girls save it in a bank account. Other research by Roy Morgan (October 2014) shows 1.8 million young Australians, aged between six and 13, hold an estimated $653 million in personal savings.
Almost one in two parents(48 per cent) surveyed by The Greater believe that financial institutions should play a role in educating children about banking.
The Greater has introduced a new Life Saver youth banking account. (Check out the full findings of The Greater's research in the infographic below!)
Mr Hingston said it makes it easier for under 25s to save and meet their lifetime savings needs. He said the account pays high interest (currently 3.5%) provided the account balance grows. Once parents or grandparents are comfortable with the child operating the account themselves they can link it to a Greater everyday account to enjoy transaction and account keeping fee free banking until they are 25.
“The Greater is rewarding good savings habits at an early age by paying high interest and allowing young people to start operating an everyday account without the burden of paying fees,” Mr Hingston said.
The customer owned Greater Building Society provides savings and investment accounts, home loans and other banking services to around a quarter of a million people in NSW and South East Queensland.