Sometimes, I suspect that Chinese New Year is an initiative by the government to encourage one to have more children – the more kids you have, the less the monetary loss to your family as a whole. Additionally, if you are a mean parent who confiscates all of your child’s ang pao money, because to quote you, “mother knows best”, then you will see your net value shoot up by a few hundred to a few thousand dollars every CNY, directly proportional to the number of kids you have.
However, if you are one of those nice parents who choose individualism over paternalism, then Chinese New Year will be a time when you gain more than just a few Kg; you also gain a few strands of white hair fretting about what your child will do with his/her sudden wealth. Will she spend it all on sweets that will rot her teeth? Will he spend it all on gaming products that will spoil his eyesight? Will they know how to manage their own money?
This is where a bank account comes in handy. Talk/coerce your child into depositing all his/her money into the bank. And from there, you can teach them healthy spending habits and instil in them a sense of ownership of their own money.
But… There are so many banks offering children accounts out there, which one do I choose?
Well, that depends on your child’s needs. Here is a comparison chart for your reference:
Just looking at the interest rate, CIMB offers the most attractive rate. However, there are only 2 CIMB branches in Singapore, compared to the 100 plus that DBS and POSB jointly have (the two have merged, in case you didn’t know). Complicating the matter further are the add-ons. Is insurance something that will tip the scale? Or do you already have an insurance plan for your child? I suggest you sit down and think about what are the features that you or your child need the most, and then choosing the bank account based on those criteria.
When creating a bank account for your child, it is advisable to bring your child along. Involve him/her in the process of submitting the necessary documents and handing over all his/her money. After all, what is the use of creating a separate account for your child if the owner does not take ownership? You might as well be one of those mean parents who confiscate their child’s ang pao money.