POSB offers a matching savings plan to encourage students to save

SINGAPORE – In a bid to get students to save more, POSB has launched a new scheme where they can get up to $10 a month if they regularly set aside part of their allowance.

It will also expand its financial education outreach to more schools.

The bank announced on July 19 that it aims to help more than one in three elementary and middle school children collectively save an additional $35 million by 2026. The new initiative, called the Smart Buddy 2X Savings Booster, is one way it plans to achieve that goal.

According to POSB, its renewed push for savings comes amid concerns that students are spending more than they save, due in part to rising food prices in school cafeterias.

“Recent data showed that the average monthly spending per student increased by 11 percent year-over-year, while their monthly savings increased marginally by 1 percent year-over-year,” he said.

The data was derived from an analysis of POSB’s database of more than 70,000 POSB Smart Buddy users, aged between six and 16 years.

Under the POSB Smart Buddy program, parents set a daily or weekly allowance for their children to spend in or out of school.

Any amount not spent on the Smart Buddy account will be considered savings. The Smart Buddy card or watch is not like an ATM card – it cannot be used to withdraw cash.

With the Smart Buddy 2X Savings Booster, the bank will match every dollar saved from a student’s allowance through a digital “Smiley Stamp” through December 31.

Each digital stamp is worth 50 cents. Each month, students can earn up to a maximum of 20 stamps, which is equivalent to 10 dollars. These will be credited to their bank accounts linked to POSB Smart Buddy the following month.

To be eligible for the savings promotion program, a child must make five eligible purchases of any amount using their Smart Buddy watch or card in the same month. Eligible transactions include purchases at merchants that accept Nets, including McDonald’s, 7-Eleven and FairPrice.

Emphasis on financial literacy

POSB has also been conducting workshops where students learn to differentiate between needs and wants, understand the importance of making smart spending decisions and recognise the value of savings, she said.

Students are taught to recognize different denominations of currency, count money and conduct cashless transactions.

The bank aims to deliver these workshops in at least 100 primary and pre-school schools run by the Ministry of Education by 2026.

In addition, POSB will jointly develop financial literacy programs with organizations such as the People’s Association (PA) and the National Library Board (NLB) to expand financial literacy programs to neighborhoods through various community clubs.

Mr Nelson Neo, Director of POSB, said: “We believe that learning to manage money from an early age is an essential life skill, helping children develop into financially responsible adults who can confidently navigate future economic uncertainties.”