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In a previous article, we shared why allowing our children to manage their own savings is an important first step to teach them important financial skills.
To do this effectively, our children need more than just a savings jar; they need a real savings account. While a savings jar helps build the habit of setting aside pocket money, it doesn’t provide an opportunity to educate them on the importance of growing their savings through earned interest or learning responsible spending habits.
One option parents in Singapore can consider when opening a savings account for their children is the Standard Chartered First$aver account. Specifically designed for youths under 18, this account serves as an excellent platform to introduce to our children different types of financial responsibilities that they have to shoulder on, and to familarise themselves with concepts and features that can help them manage their money.
Here are five key features offered by the Standard Chartered First$aver account that all parents will appreciate.
#1 Introduce Our Children To Essential Banking Services
We live in a digital world where money no longer refers to cash in our wallets. Instead, most of our savings are going to be kept in our savings accounts.
These savings accounts are used not only to keep excess savings but also to access essential banking services such as payment and mobile banking. Children need access to these services to learn how to manage money.
For youths aged 13 and above, the SC Mobile app offers a simplified interface designed to meet their needs. It allows them to easily transfer funds, make payments, track their transactions, and manage their savings. This user-friendly view ensures that young users focus on essential money management skills without being overwhelmed by complex banking features.
It’s also a valuable opportunity to familiarise our children with key financial concepts and terminology, such as “interest rate,” “cashback,” and “PIN.” Early exposure to these terms helps them build the knowledge and confidence to make informed financial decisions as they grow older.
#2 Learn To Pay Wisely
We all spend money, but there’s a significant difference between being a regular spender and a smart spender. In today’s digital world, if an item costs $100, it doesn’t mean that everyone pays the same price.
A smart spender knows how to get a better deal than those around them. One such way is by earning cashback on the purchases that we make.
For youths aged 13 and above, the Standard Chartered First$aver account comes with a First$aver debit card that rewards them with 1% cashback on eligible spends.
This is an easy way to introduce our children to the concept of smart spending, where they learn to make thoughtful payment choices that maximise rewards. By earning cashback on their purchases, they can learn to appreciate methods where they can stretch their dollar further and be a smart spender.
Additionally, having ownership of their own debit card can instil a sense of responsibility in them. It empowers them to manage their spending, track transactions and make real-world financial decisions. If they overspend, they also have to deal with the consequence. This allows them to develop practical budgeting skills from a younger age.
#3 High Interest To Encourage Saving
A savings account is not just a place to spend money but also a tool for accumulating savings for a rainy day or a big-ticket expense.
By encouraging our children to save a portion of their allowance, we can help them understand the value of setting money aside, and to show them how their savings can grow over time. This lesson not only inspires them to save more but also reinforces the concept that money can grow.
The Standard Chartered First$aver account supports this by offering an attractive interest rate of 2.00% p.a. on the first S$50,000 of deposits.
This makes it easier for children to see the rewards of saving, as the interest is earned effortlessly with no tasks to complete, and no minimum spending required. This fuss-free approach allows them to experience firsthand how their savings can work for them, fostering a positive habit of saving for the future.
#4 Activate Safety Features Like Moneylock For Extra Security
Teaching children to manage their own savings accounts comes with an important lesson: teaching them how to protect themselves and their savings from scams.
In today’s increasingly digital world, where phishing attempts, fake websites and suspicious transactions are more prevalent than ever, this skill is critical. As parents, it’s natural to worry about whether our children are equipped to identify and avoid these threats.
Fortunately, the Standard Chartered First$aver account offers a valuable feature that provides an added layer of protection: Money Lock.
This feature allows parents to “lock up” a portion of their child’s savings that isn’t intended for immediate use, safeguarding it from unauthorised transactions or accidental overspending. Think of it as creating a digital safety vault for our child’s money—accessible if needed but protected from unintended use.
#5 Enable Smart Spending with Parental Oversight
When it comes to managing their own savings account, one significant risk of delaying this responsibility is that when our children eventually become an adult and gain full control over their finances, they will have unrestricted access to all banking services without the foundational experience needed to handle them responsibly. At that point, they are no longer minors, and as parents, our ability to influence their financial decisions becomes limited, potentially leaving them vulnerable to mismanagement or costly mistakes.
By introducing our children to financial management at a young age through a savings account like the Standard Chartered First$aver account, we can bridge this gap effectively. This account allows parents to maintain oversight while their children learn to manage money in a safe and supportive environment. As parents, we can monitor their transactions and guide them in understanding the basics of budgeting, spending and saving.
Starting this journey early equips our children with essential money management skills and instills a sense of responsibility. They gain practical experience in handling finances, learning to navigate their financial responsibilities with ease and confidence—all while benefiting from our guidance.
Read Also: Why Allowing Our Child To Manage Their Own Savings Accounts Can Teach Them The Value of Money
Image Credit: iStock.com/iHumnoi
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