SINGAPORE – In a bid to get students to save more, POSB has launched a new scheme where they can get up to $10 a month if they regularly squirrel away part of their allowance.
It will also expand its financial literacy outreach to more schools.
The bank aims to help more than one in three children in primary and secondary schools collectively save an additional $35 million by 2026, it announced on July 19. The new initiative, called Smart Buddy 2X Savings Booster, is one of the ways it plans to go about achieving that goal.
According to POSB, its renewed savings push comes amid concerns that students are spending more than they are saving, due in part to rising food prices at school canteens.
“Recent data showed that the average monthly spending per student increased 11 per cent year on year, while their monthly savings rose marginally by 1 per cent year on year,” it said.
The data was derived from an analysis of POSB’s database of more than 70,000 POSB Smart Buddy users, aged between six and 16.
Under the POSB Smart Buddy programme, parents set a daily or weekly allowance for their child to spend in or out of school.
Any amount left unspent in their Smart Buddy account will be considered their savings. The Smart Buddy card or watch is not like an ATM card – it cannot be used to withdraw cash.
With the Smart Buddy 2X Savings Booster, the bank will match every dollar saved from a student’s allowance via a digital “Smiley Stamp”, until Dec 31.
Each digital stamp is equivalent to 50 cents. Every month, students can get up to a maximum of 20 stamps, which amounts to $10. This will be credited to their POSB Smart Buddy-linked bank accounts the following month.
To qualify for the savings booster programme, a child has to make five eligible purchases, of any amount, using their Smart Buddy watch or card in the same month. Eligible transactions include purchases at merchants that accept Nets, including McDonald’s, 7-Eleven and FairPrice.
Emphasis on financial literacy
POSB has also been running workshops where students will learn to differentiate between needs and wants, understand the importance of making wise spending choices, and recognise the value of savings, it said.
Students will be taught to recognise different currency denominations and count money and make cashless transactions.
The bank aims to hold these workshops in least 100 Ministry of Education-run primary and pre-schools by 2026.
In addition, POSB will co-develop financial literacy programmes with organisations such as People’s Association (PA) and the National Library Board (NLB) to scale financial literacy programmes to neighbourhoods via various community clubs.
Mr Nelson Neo, head of POSB, said: “We believe that learning how to manage money from an early age is an essential life skill, as it helps children grow into financially responsible adults capable of confidently navigating future economic uncertainties.”