4 Reasons why banking should be a family activity
Young children are eager to learn something new every day, and any amount of time that you spend creating positive experiences with your children is time well spent.
Teenagers, on the other hand, often have a desire to grow up quicker, and having control over their money is one way to achieve this. It is crucial for parents to teach children of all ages the basics of financial literacy. Here are 4 reasons why you should start teaching your kids about banking today:
- Money habits are set by the age of 7: research by the University of Cambridge shows that our approach and financial habits, such as planning ahead, are set by age 7. This doesn’t mean that it is impossible for a person to learn or change their habits at a later stage; however, it is more beneficial to start teaching good financial habits as early as possible. With a (sum)1 Banking Account, you can get your children started on their financial journey today.
- It teaches them about self-control: when children have their own bank account, they can set financial goals for themselves, such as saving up for a new bicycle or saving up for an outing with friends. With an account like the PureSave Account, teens can start saving in high school and have extra funds to spend once they get to university. This teaches the importance of self-control and long-term rewards versus the instant gratification that comes with spending money frivolously.
- They can learn more about financial independence: allowing your children to manage their own savings account helps them learn how to use their own money for things. For example, many teenagers often have holiday jobs, and when someone earns their own money, they tend to make more conscious decisions about how they spend it. It is also important to set boundaries with them about how often you are willing to give them more money to teach them how to budget properly. With the MyMo Account, you can get more value with a gold card account for as little as R4.95 per month, as well as access to exclusive deals at over 80 retailers nationwide, including Cotton On, Kauai, Nando’s, Sorbet, Studio88, Superbalist, Takealot, The FIX, Typo and Virgin Active.
- It helps lay the groundwork for further financial education: once they understand the basics of saving and investments, you can begin to teach them even more about the other types of financial products that exist, such as loans and credit facilities. As children get older, understanding the implications of doing things such as taking out credit helps prepare them for adulthood, and they will be less likely to fall into the trap of falling into debt in their early twenties.
Secondary accounts for parents
Building wealth is a lifelong activity, and even adults should continue to find new ways to do so. Standard Bank has a range of options for parents seeking a secondary account, including the Private Banking Account and Signature Banking Account.
With the Private Banking Account, you can have access to a Private Banking team that will provide you with diverse short- and long-term savings and investment options to grow your earnings. The account also provides you with information about trusts, estate planning and insurance to secure your family’s financial future.
The Signature Banking Account allows you to grow your wealth through bespoke portfolio management from Melville Douglas and also comes with benefits that you can share with 5 family members, including:
- World Citizen Credit Card and access to your private banker*
- Access to your banker via phone
- Our dedicated Signature Travel desk, which is available to assist you with travel bookings, visas, forex and comprehensive travel insurance
- Access to airport lounges when your family members are with you
- Assistance with account opening and FICA verification
- Assistance with student loans and investment accounts
- Legacy Lifestyle rewards
- Funeral plan, accident and health policies for your domestic staff
As a parent, the best thing you can do for your children is give them the knowledge they need to become financially responsible and ensure that you set a good example for them.
*Terms and conditions apply.