Our parents taught us the value of saving money at a young age by providing us with piggy banks or alkansya. It is where we put the coins that we collected from our “baon” or from plucking dad’s gray hair (25 cents per hair) and from Christmas Caroling. This also came in handy when we needed to buy things for school projects. My parents can actually provide financially but they want us to learn how to save and to spend money wisely. I also want my kids to learn how the piggy bank can secure their future financialy.
However, in this modern age, where banks and mobile wallets are just within everyone’s reach, providing my kids with cute coin banks is still a great idea to encourage them to learn the most basic financial skill – Saving Money. But once the coin bank is full, we break it, count it, praise them for saving and teach them to level up and move on to the next step: Savings Account.
There are Several Good Reasons For This
Safety and security. Cash that is kept at home is not that secure. It can be stolen, degrade with time, or even lose value. From time to time, we read news about those who lost their money after storing it at home or after pests damaged the bills kept in cans or drawers.
Savings accounts are life lessons. Having your child open and maintain a savings account in a bank is the first step towards a financially secure future. As they grow older, they will learn more financial skills along the way—such as wise spending, sticking to a budget, investing, and getting insurance—that would protect them from poverty and debt, allow them to build their wealth, and secure their future for a lifetime.
Literacy in a digital world . The world’s financial system has shifted towards digital since the 1980s. Anyone who wants to make a living, earn money, and build wealth needs to understand and use digital banking. Teaching your child to use a savings account now will prepare them better for the digital world of finance.
Fortunately, with BDO Junior Savers Account, it is now easy for parents to open a savings account for their children. With minimal requirements and an affordable initial deposit and maintaining balance, it’s a breeze to visit a bank branch and put the money from the alkansiya into your child’s bank account.
Now with BDO Junior Savers Plan it is easier for us parents to help our kids grow their savings. This allows us to add to our kids’ savings by scheduling regular deposits using your BDO Online Banking Account. By setting the amount and frequency of transfer, we can easily build their savings and teach them more money lessons.
The alkansiya or piggy bank is part of Filipino culture and heritage. As parents, we can use it as a means to instill the basic value and habit of savings to our children—then when it’s time to break piggy open, let’s put our child on a journey to financial freedom and security through their savings account.