We teach our children how to ride their bikes and tie their shoelaces, but what about money? Financial literacy is one of the most important gifts you can give your kids, and HSBC Premier is committed to helping you and your family achieve this goal.
Financial literacy is vital. It’s a misconception that earning and having money means you are financially informed. Managing your money and knowing how to make it work for you is the next crucial step.
Financial literacy means:
- Earning, budgeting, investing, borrowing, and responsible spending.
- Saving for short-term and long-term goals.
- Understanding the value of a dollar.
- Knowledge of savings and compound interest.
- The ability to make effective and safe financial decisions.
How can I teach my children this essential life skill? It’s never too early to begin. HSBC offers these suggestions:
Make it tangible.
- An allowance is a simple way to teach your children about money. Show them how to allocate their earned allowance into what they should ‘save,’ what they can ‘spend’ and even what they can ‘give to charity’. These simple, practical skills introduce your children to the concept of money and how to manage it.
Have the ‘money talk’.
- Discuss setting goals, budgeting, saving, how to identify and handle scams, and how to develop good spending habits.
- Talk about the use of credit cards and debit cards. Explain the difference between the two. Contactless, digital, and mobile banking are increasing the invisibility of money. Conversations should include technology – money is no longer just coins and paper!
Get help from the experts!
- HSBC offers complimentary Financial Education resources that are designed to make learning about money fun: www.hsbc.bm/education. The guides are designed to help children of all ages improve their financial literacy and better understand the value of money.
Set a positive example.
- Children often learn more from what you do than what you say. Be open about your finances. Discuss when you hold off buying something because it’s the right financial decision. Basic conversations go a long way towards reinforcing successful long-term money habits.
The HSBC Premier bank account is designed to encourage family financial literacy. Some HSBC Premier benefits include:
- Shared Premier Status. Your Premier status extends to your spouse and children (up to the age of 28) providing them with the same exclusive privileges that you enjoy.
- Personalized support, expert financial advice, and a dedicated Relationship Manager to help manage your finances.
- Financial planning for your family’s future. Whether it’s planning for retirement, education costs or growing your wealth, expert advice is available to help you reach your goals.
- HSBC Premier cards and digital payment empower your child to spend responsibly.
- Reduced fees and preferential rates for loans, mortgages and other HSBC products and services.
- Premier credit cards. Access to premium credit card options that give you additional reward points when you spend, and access to exclusive privileges and offers. Premier also offers Bermuda’s only credit cards without an annual fee.
- Family Springboard Mortgage. Your child can purchase their first home with little or no down payment, with the support of additional security (cash or property) in lieu of a down payment. Not only will your child enjoy the preferential rate of a Premier Mortgage, but your security can also be released after 5 years.
Even while studying abroad, your children will continue to be supported with an HSBC Premier account. Benefits include:
- Global Premier status wherever they are studying and/or travelling with 24/7 Contact Centre support.
- Overseas Educational Support. Your child receives free pre-arrival international HSBC Premier account setup. This ensures a smooth transition before and after their arrival in their destination country.
- Global Network Connectivity. Global view allows management of all their accounts with a single log-on, and an instantaneous fee-free funds transfer between you and your child’s local and international HSBC bank accounts via Global Transfers.
- Premier rates for educational loans and foreign exchange when funds are needed in other currencies.
HSBC is committed to nurturing future financially literate generations with:
- Premier MySavings Youth Account. A savings account starting at age 7 with extended eligibility to 25 (for Premier customers only) with monthly and bonus quarterly interest rates.
- Access to a series of interactive financial literacy educational videos to help children aged 3 to young adults, learn how to manage their money. The age-appropriate topics range from working to earn money, to help us buy the things we need, to managing bills and budgets.
- Premier Next Generation. Your children’s Premier status is extended to the age of 28 so they’re supported through university and as they establish their careers.
To learn more about HSBC Premier contact: www.hsbc.bm/premier or call: 441-299-5252.
Contact HSBC today and start your children on the path to financial success!