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Children's banking Updated: 07 Feb 2010

Banking ABCs

There’s a good chance your kids will be discussing banking, interest rates and other financial topics at school these days. So having a bank account could reinforce what’s being taught at school.

In 2007 a new curriculum was introduced into primary and secondary schools. It introduced “learning outcomes” with financial themes. The schools are free to come up with programmes to achieve the learning outcomes, so what’s being done will vary from school to school.

Tawa Intermediate Principal Carolyn Stuart said its 2008 pilot programme was such a hit with parents and pupils – and such a success in a learning sense – that it was introduced to the whole school in 2009. Issues the students look at in the programme include meeting everyday costs, covering emergencies and saving for a holiday - essential skills for those earning pocket money and armed with ATM cards!

Banking at school has also made a bit of a comeback. ASB and Westpac allow primary-age kids to make deposits into their bank accounts at schools all over the country and SBS Bank provides the service in Christchurch. The National Bank offers a school banking service at around 100 schools where children act as tellers with assistance from bank staff.

Parents’ strategies

Having a bank account is a great opportunity for kids to learn about managing money.

Peter, a Consumer member from Palmerston North, told us that he and his wife arranged ATM cards for their two daughters when they turned 13. The girls had a budgeting system linked to their monthly allowance. The allowance covered things like clothing, bus fares, mobile phone costs and birthday presents for friends.

Before each month's payment went through the girls had to provide a record of how the previous month’s money had been spent. There were no recriminations, but the monthly review helped the girls see that money was limited and wise choices had to be made. The girls are older now and Peter has been really encouraged by the financial choices they’ve made.

Peter said he agreed when he heard someone say teaching children to handle money is like teaching them to drive a car – “We don’t just hand them the car keys when they are ready to drive and say ‘Go to it’!”