According to the Bangko Sentral ng Pilipinas (BSP), 86 percent of Filipino households do not have a deposit account. One reason why they do not have a bank account is because they do not have extra cash to spare for keeping. Here are 5 common reasons why Filipinos do not save money.
BSP quadrennial Consumer Finance Survey (CFS) cited that the 14% of households that have deposit accounts are mostly employees, either by private companies or by the government. Filipinos still prefer to keep our money at home using piggy banks or “alkansya”.
Let me share my first lesson in saving money.
I remember when I was still young, my mom used to tell me to always save money and be thrifty. I usually keep every peso or every coin that I find lying around our home in my piggy bank. I remember asking my mom to give me money so I can put in my “alkansya” and open it in December. After opening my piggy bank, I will start stacking the coins and count how much money I saved. From there on, I develop the habit of saving money.
I even let my friends rent my gameboy, sold Teks (game cards) and sold other toys to earn money. We also sold candles and snacks in front of our house during All Saints Day. This is how I started to learn how to earn money when I was young.
Let your kids know the value of money by giving them some freedom in handling it. You can start teaching your kids how to save money by using Piggy bank. You can match the money they save so that they will be encouraged to save more. During Christmas, let them spend some of it and match again whatever they save for the next year. that way they will enjoy their money and look forward on how much they are able to save next year.
I believe that saving money should be taught at the very young age. Every parents should teach their children how to save and spend their money wisely. Teaching your kids how to save money is an important life lesson especially today that’s financial literacy of our country is not that good.
If you want to teach your kids the basics of personal finance then letting them have a savings account and take responsibility with their own money will give them the opportunity to learn basic concepts such as saving, expenses, tracking finances and interest. Having a good money habit is also an important life lesson for kids and adults alike.
Opening a new bank account for your kids is easy. You just need to fill up the forms in the bank and submit the required documents, photo and ID’s. We also listed some of the banks that offer savings accounts for kids. Check out the bank links for more information.
5 Best Savings Accounts For Kids
PSBank Kiddie Savers and Teen Savers Accounts
age limit: PSBank Kiddie Savers: 0-12; PSBank Teen Savers Accounts: 13-18
initial deposit account: any amount
min. maintaining balance: any amount
maintaining balance to earn interest: any amount
Take this opportunity to raise your children to be good savers through the PSBank Kiddie Savers and Teen Savers Accounts. Starting them on the road to saving is very easy, as these accounts do not require an initial deposit or maintaining balance so that your children can start saving even with a small amount. Aside from enjoying the security and stability of banking with PSBank, your children are also protected through a free personal accident insurance from Charter Ping An Insurance Corporation. Your child could get insurance coverage equivalent to five times the value of his average daily balance. You can read more about PSBank Kiddie Savers and Teen Savers Accounts here.
Metrobank Fun Savers Club
age limit: 0-18
initial deposit account: Php 100
min. maintaining balance: Php 500
maintaining balance to earn interest: Php 4,000
It’s never too early to teach your kids the value of saving for the future. Metrobank’s Fun Savers Club shows your kids how to save in simple terms that excite young financial minds. Exclusively for kids and teens under 18, Fun Savers Club is a special savings account that is all about promoting good money sense among kids today. Aside from that, your kids will get the following benefits below. Read more about Metrobank Fun Savers Club here:
- A welcome gift upon account opening
- Free educational trust benefit worth P50,000 (with minimum ADB requirement)
- Free personal accident insurance worth twice the ADB, not to exceed P1 million (with minimum ADB requirement)
- Exclusive discounts and privileges from their partner establishments like Ace Water Spa, Zoobic Safari, Science Centrum and more.
Maybank Yippie Savings Account
age limit: 0-12
initial deposit account: Php 500
min. maintaining balance: Php 500
maintaining balance to earn interest: Php 5,000
Big futures start with small savings. Teach children the value of saving and open a Maybank Yippie Savings Account today. A savings account specially made for children aged 12 years old and below, that comes with personal accident insurance and medical reimbursement benefits. Simply maintain a minimum balance of Php 500 to keep the account active, and a minimum balance of Php 5,000 to enjoy interest. Read more about Maybank Yippie Savings account here.
- Be covered with free personal accident insurance 24 hours a day, 7 days a week with coverage equal to 5 times the previous month’s ADB or up to a maximum of Php 500,000.
- Free medical reimbursement benefit equal to 10% of the personal accident insurance coverage.
BDO Junior Savers
age limit: 7-12
initial deposit account: Php 100
maintaining balance to earn interest: Php 2,000
Junior Savers is the best way to teach your child how to save. Children ages 0-12 years old can open a passbook account for as low as Php 100.00 and start earning interest upon reaching a Php 2,000.00 deposit balance. To help build your child’s savings, you may automatically transfer funds from your existing BDO Savings Account to your child’s Junior Savers Account via Easy Saver or BDO Online Banking (enrollment is required). Read more about BDO Junior Savers account here.
BPI Jumpstart^ Savings account
age limit: 10-17
initial deposit account: Php 100
maintaining balance to earn interest: Php 1,000
The Bank of the Philippines Islands (BPI) Jumpstart^ Savings account is specially designed for the youth, ages 10 to 17 years old. It’s a tool to form the habit of saving at an early age. It is an ATM savings account with special and cutting-edge features that help pre-teens and teens to save their money at ease and keep their money safely. Read more about BPI Jumpstart^ Savings account here.