Are your children money smart?
Take the first steps towards fiscal responsibility with an HSBC MySavings Youth Account and the Premier MySavings Youth Account!
Contactless, digital and mobile banking are increasing the invisibility of money. This makes it important for children to build monetary awareness at an early age.
You don’t need to be a financial expert to teach your kids how to be money smart. Here are some tips to get started:
Children 11 and younger:
- An allowance that depends on completing pre-agreed household chores teaches them how to earn money.
- Children rarely see cash being exchanged. Explain how money works in the digital world by showing them your balance on an app. Then go shopping and show them your reduced balance.
- Let them spend what they earn. When shopping, show them one lower-priced toy and one that’s expensive. Explain that buying an expensive toy means saving more to pay for it.
- Make a savings goal chart. Work out how many weeks it will take to reach that amount.
- Show them how to access their account online so they can monitor their money. Explain the importance of never giving out passwords or personal information. Show them how to spot suspicious emails and texts.
- Encourage them to earn money with additional responsibilities at home or through a part-time or weekend job.
- Include them in your household budgeting. This gives them an understanding of how to budget and how money is allocated.
- Discuss online safety! Talk about the basics of online shopping – for example, check the URL of websites for HTTPS (the ‘S’ is for secure) before making online purchases or payments.
- Discuss the differences between saving and investing.
- Explain how credit works. Consider lending your child money for a major purchase. Agree on a fair interest rate so they can learn what it means to pay off debt.
- Once they’re earning a steady paycheck, teach them about credit. Suggest getting a credit card to help build the credit they’ll need for future goals like buying their first
- home. Remind them to budget for this expense. Make them aware of the consequences of bad credit history if they miss a payment or pay less than the minimum amount.
As parents/guardians, we have the responsibility to shape our children’s relationship with money. Get started with an HSBC MySavings Youth Account.
To set up an HSBC MySavings Youth Account:
- This account is designed for children of Personal Banking and Advance customers – ages 7 to 17. The age eligibility for children of Premier customers is 7 to 24.
- The minimum deposit amount required when opening this account is BMD$25, USD$25 or CAD$25.
- Children aged 7 to 17 must be accompanied by an adult.
- There are no maintenance fees.
- Standard and bonus interest is calculated daily, with standard interest credited to your account monthly and bonus interest quarterly, if no withdrawals are made after each qualifying 3-month period. The interest rate varies by currency.
- The MySavings Youth Account is designed to encourage savings. A debit card is not available. However, a debit card can be requested when you open a separate joint HSBC Bank account with your child.
- Identification is required at the time of account opening.
When your child reaches the age of 18, HSBC will automatically transfer their MySavings Youth Account to the Quarterly Bonus Saver Account. For the Premier MySavings Youth Account, when your child reaches the age of 24, the account will automatically transfer to the Quarterly Bonus Saver Account. If the Quarterly Bonus Saver Account is not available at the time of transfer, HSBC will advise you of another bank account to meet your needs.
As a bonus, the children of Premier customers can enjoy these additional family benefits:
- Extending their Premier MySavings Youth Account privileges up to the age of 24.
- Premier status until the age of 28 to support them during school and when they are starting their career.
- Free oversees account opening support if they go abroad for school.
- 24/7 Premier Support.
- A dedicated Relationship Manager.
- Premier credit cards. Access to supplementary credit card options for your child (14 years or older) at no additional cost. Our premium credit card options provide additional reward points and access to exclusive privileges and offers. Premier also offers Bermuda’s only credit cards without an annual fee.
- When using an HSBC debit or credit card, enjoy thousands of ‘Home & Away’ offers in education, experiences, wellbeing, dining, shopping, and travel, with some that are exclusive to HSBC Premier account holders.
It’s never too early to teach your kids how to manage their money. Get started with the complimentary HSBC Financial Education resources designed to make learning fun: www.hsbc.bm/education.