One of the biggest problems that people have with the creation of wealth or financial well-being is the inability to save.
This is because most people attempt to start saving late in life, whereas the best way to get into the habit of saving is to start at an early age.
The Swaziland Building Society (SBS) has a perfect product that addresses this situation and encourages the younger generation to get into the habit of saving. SBS has a Savings for Kids Account designed to teach children the savings culture at an early age.
SBS Asakhe Branch Manager Nomhle Vilakati said: “This is a tailor-made product, whereby opening up the Savings for Kids Account gives them a sound foundation, on which to build their financial future. Even at an immature age, children can understand the concept of more versus less and are introduced to money as soon as they can count.
“Parents are encouraged to create financial awareness while empowering their children to always manage account and transactional information carefully. With the Savings for Kids Account, deposits of any amount may be made over the counter at any branch or through stop order or digital means.
“The target market for the Savings for Kids Account is all children from a month to 16 years of age. Interest on the deposited amount is paid out monthly. This product has numerous benefits that include financial literacy, building confidence among children and an affordable initial deposit of just E50.”
To open an account, parents or guardians are invited to bring their original IDs and the child’s birth certificate, proof of residency such as a utility bill, water bill, electricity bill, rates bill and a valid lease agreement. Proof of income, not older than three months, will also be required for working individuals.
Vilakati says: “Vital money management lessons will be learnt by the children based on their spending or saving habits. Since they will have their own bank account, they will get firsthand experience with money. The opportunities to teach these important lessons are there, so emaSwati are encouraged to take advantage of them.
This will drive the savings culture and financial discipline among the young ones. Children today are entering a world where financial literacy is crucial. Being able to inculcate not only a saving culture but also financial discipline is key to their development.”
Vilakati says: “This product has been well received by our customers and the remarkable thing about it is that it is in line with our policy of financial inclusion. Everybody is now able to get access to financial services. It has made a great contribution in that regard.
“Every parent or guardian is encouraged to open this account and save for their children’s future, it can be for the benefit of their education, for ‘rainy days or any other need that might occur in the future.”
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