Figures released today reveal that Australian parents, many of whom are themselves poor savers, are seeking a better deal for their children's savings, and almost half want their kids to start learning about money and saving between the ages of three and six ¹.
The figures ² from BankWest show that nearly one million dollars has been deposited into Kids' Bonus Savers*, the country's market-leading savings account for kids, since it was launched in late June.
With no fees and 10 per cent p.a. bonus interest for kids under 15 years, it's well above its nearest competitor.
According to BankWest's Head of Deposits, Paul Vivian, "We've changed the children's saving account landscape in Australia for the better. Nearly one million dollars deposited in Kids' Bonus Savers in less than two months shows that parents are fed up with their children getting ridiculously low interest rates and are doing something about it!"
In another sign that parents are getting serious about their kids' savings, BankWest reports a 40 per cent increase in visits to www.getsaving.com.au, a BankWest sponsored website that provides useful information for people wanting to improve their saving habits, since the addition in June of a new parents' section containing tips and tools to encourage kids to save.
Despite parents' good intentions towards their kids' savings and financial education, when it comes to their own savings habits they're not as vigilant. An earlier national Newspoll survey commissioned by BankWest revealed that 1.4 million working Australians don't save any of their monthly income, and on average people spend about twice as much time cleaning their homes as they do managing their finances ³.
Says Paul Vivian, "As important as it is to teach children and parents about financial literacy, banks need to step up to the mark and provide the products and services to help people to save. Our Kids' Bonus Savers account is encouraging children and their parents to save."
According to money coach and author of "Smart Couples' Guide to Money" Gay Curtis, "It's great to see that parents have good intentions when it comes to their children's financial futures, but parents need to lead by example and demonstrate they are practicing what they preach. It's never too late to start learning how to be smart with money and the good news is it's not too difficult. A great place to start is www.getsaving.com.au. It contains simple money tools and advice designed to get your finances on track."
The BankWest Kids' Bonus Savers is designed for children under 15 and the account pays a bonus interest rate of 10 per cent p.a. By restricting the amount of withdrawals and requiring a deposit between $25 and $250 per month, it encourages children to get into the habit of saving. If the stipulated deposit amount isn't made or a withdrawal occurs, the rate reverts to a standard rate of 0.01%p.a. for that month only. As an added incentive the Kids' Bonus Savers has no account keeping fees. Each year, on the anniversary of the account opening, the child's savings 'sweep' into a standard Children's savings account which pays up to 4.5 per cent p.a. and kids can once again start saving money in the Kids' Bonus Savers.
The BankWest Kids' Bonus Savers is available for new and existing customers via the internet at www.bankwest.com.au or call 13 17 20.
