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DBS Group Holdings Ltd.
DBS Group Holdings Ltd.
19/07/2024 | Press release | Distributed by Public on 19/07/2024 04:48
POSB renews push to encourage savings habit in schools; will help more than 150,000 students collectively save additional SGD 35 million by 2026Singapore.19 Jul 2024.5
POSB renews push to encourage savings habit in schools; will help more than 150,000 students collectively save additional SGD 35 million by 2026
Singapore.19 Jul 2024
Bank's new savings drive aims to help more than one in three primary and secondary students save at least SGD 10 more each month
To expand its financial literacy programme to cover at least 100 MOE-run primary and pre-schools
To also launch savings incentives that reward diligent savers and leverage partnerships to scale financial literacy efforts
Singapore, 19 Jul 2024 - To further entrench the savings habit in schools, POSB, the People's Bank, has launched a national savings drive which will help more than one in three primary and secondary school students collectively save an additional SGD35 million by 2026. This means that the participating students, spurred by POSB's Smart Buddy programme, will each save at least SGD 10 more per month, representing a 17% uplift in their average monthly savings today.
The bank's renewed savings push comes amid concerns that students are spending more than they are saving, due in part to rising school canteen food prices[1]. Recent data showed that the average monthly spending per student increased by 11% year on year, while their monthly savings rose marginally by 1% year on year[2].
To help students to set aside more money, POSB will implement the following measures:
Through assembly talks and workshops, DBS employee volunteers and facilitators will cover essential financial concepts using a syllabus designed by the bank's financial literacy team. Students will learn how to differentiate between needs and wants, understand the importance of making wise spending choices, and recognise the value of savings.
"We believe that learning how to manage money from an early age is an essential life skill, as it helps children grow into financially responsible adults capable of confidently navigating future economic uncertainties," said Nelson Neo, Head of POSB. "The world of finance can be complex, but we must learn to navigate it well given the influential role money plays in many aspects of our lives, and its intrinsic link with our emotional state of mind and the security it provides.
That is why we have made it our mission to widen and boost access to financial education alongside our investments in saving incentives and ecosystem partnerships, so that we can help more Singaporeans become financially literate[3]. By introducing a more programmatic and progressive approach to teaching financial literacy, we can help young children establish a strong financial foundation from an early age, setting them up for future success."
Employing a progressive lens to teaching financial literacy
As part of a comprehensive approach to teaching financial literacy to students, POSB/ DBS has developed age-appropriate content to be taught in schools ranging from pre-schools to tertiary institutions.
This ensures that students can progressively build their knowledge of various financial topics over the years, and eventually 'graduate' from basic money management to more complex topics, such as setting up a comprehensive financial plan, when they enter the workforce.
Similarly, as POSB Smart Buddy users grow older, they can transition to using DBS' AI-powered digital financial planning tool via the Plan tab on digibank to continue learning how to manage money smartly. Later this year, POSB Smart Buddy users will be able to put what they have learnt about money management to practice via the POSB Smart Buddy mobile app with its new 'Insights' feature. They will also receive personalised tips on how to manage their allowance or savings goals better.
Yap Keng Hwee, Deputy CEO of Empact, and a bank customer who has a daughter aged 19 and a son aged 15, said: "I have always believed that financial literacy is a critical life skill, and that early exposure along with age-appropriate instruction would greatly enhance our children's financial independence when they enter adulthood. Even though the Ministry of Education (MOE) has made significant strides in enhancing our world-class education system, it remains predominantly academically focused, which leaves parents like me with the responsibility to independently teach our children how to manage money.
With POSB adopting a progressive approach to teaching financial literacy from a young age, it helps lay a solid foundation for parents to build upon when discussing money management with our children. Additionally, it is crucial to retain knowledge of handling physical currency - counting and managing notes and coins - since our kids might one day find themselves in countries where physical currencies remain the only means of transaction."
Making financial literacy accessible anytime, anywhere
Parents and their children can tap on POSB Smiley Town, an interactive mobile web-based game, to reinforce money management skills learnt after attending the bank's financial literacy programme. It is a public game that does not require school sign-ups, making it easy for everyone to join. The game is designed to cover basic financial literacy lessons in a fun and positive manner.
For more information, please visit this link.
About POSB
A part of the DBS Group, POSB is the largest and oldest local bank in Singapore with over four million customers. Having served generations of Singaporeans for the past 147 years, it is known as the "People's Bank", and prides itself on being "neighbours first, bankers second".
POSB takes pride in supporting the community's everyday needs and helping individuals, families, and businesses to become better savers. It stands at the forefront of change by providing pioneering financial solutions and services - across savings, borrowing, investment and insurance - that cater to the evolving needs of Singaporeans.
As a trusted member of the community, it is also committed to giving back to and standing alongside Singaporeans. From inculcating healthy financial habits to promoting digital literacy, POSB seeks to enrich neighbourhoods and uplift the community.
For more information, please visit www.posb.com.sg
The bank's renewed savings push comes amid concerns that students are spending more than they are saving, due in part to rising school canteen food prices[1]. Recent data showed that the average monthly spending per student increased by 11% year on year, while their monthly savings rose marginally by 1% year on year[2].
To help students to set aside more money, POSB will implement the following measures:
1. Expand its financial literacy outreach programme to more schools - for a start, the bank will run workshops in at least 100 MOE-run primary and pre-schools, benefitting between 40,000 to 50,000 students. A recent online poll conducted with 66 parents revealed that over half (53%) believe in the value of teaching children financial literacy from the pre-school level (as young as five years old). Meanwhile, a third of respondents indicated that they preferred their children to be similarly equipped from the time they enter primary school (aged seven onwards).
Through assembly talks and workshops, DBS employee volunteers and facilitators will cover essential financial concepts using a syllabus designed by the bank's financial literacy team. Students will learn how to differentiate between needs and wants, understand the importance of making wise spending choices, and recognise the value of savings.
The syllabus also includes physical cash management, where students will not only be taught to recognise different dollar and cents denominations, but also how to count money. This will come in handy when they handle cash in their daily activities - for example, when paying for groceries on their parents' behalf.
In addition, the programme will help students explore how to make cashless transactions, with an emphasis on responsible usage in today's digital era. Students will also learn about environmental sustainability, and how they can make meaningful changes to their habits in small but significant ways.
Attendees will receive specially designed worksheets and participate in hands-on activities to solidify their understanding of basic financial principles while fostering critical thinking and problem-solving skills.
2. Launch various savings incentives that encourage young students to start and maintain a daily savings habit. The bank has rolled out a new matched savings initiative, similar to the much-beloved and iconic POSB Stamp Savings initiative. It aims to encourage young children to get into the habit of saving a portion of their daily allowance via POSB Smart Buddy.
By saving an average of 50 cents a day, students will learn and realise how small steps can lead to big savings. Under the new POSB Smart Buddy 2X Savings Booster initiative, students can receive up to 20 'matched' digital stamps - equivalent to SGD 10 - every month. These stamps will be credited directly into their POSB Smart Buddy-linked bank accounts the following month.
3. Co-develop financial literacy programmes with like-minded partners such as People's Association (PA), National Library Board and EYEYAH!, and scale financial literacy programmes to neighbourhoods via various community clubs. In addition to the POSB PAssion Run For Kids annual event, the bank has also partnered PA to co-develop and launch financial literacy workshops for children. Conducted in selected Community Centres, the workshops are meant to promote good saving and spending habits, inculcate essential money management skills, and ultimately help children develop healthy financial habits from young.
"We believe that learning how to manage money from an early age is an essential life skill, as it helps children grow into financially responsible adults capable of confidently navigating future economic uncertainties," said Nelson Neo, Head of POSB. "The world of finance can be complex, but we must learn to navigate it well given the influential role money plays in many aspects of our lives, and its intrinsic link with our emotional state of mind and the security it provides.
That is why we have made it our mission to widen and boost access to financial education alongside our investments in saving incentives and ecosystem partnerships, so that we can help more Singaporeans become financially literate[3]. By introducing a more programmatic and progressive approach to teaching financial literacy, we can help young children establish a strong financial foundation from an early age, setting them up for future success."
Employing a progressive lens to teaching financial literacy
As part of a comprehensive approach to teaching financial literacy to students, POSB/ DBS has developed age-appropriate content to be taught in schools ranging from pre-schools to tertiary institutions.
This ensures that students can progressively build their knowledge of various financial topics over the years, and eventually 'graduate' from basic money management to more complex topics, such as setting up a comprehensive financial plan, when they enter the workforce.
Similarly, as POSB Smart Buddy users grow older, they can transition to using DBS' AI-powered digital financial planning tool via the Plan tab on digibank to continue learning how to manage money smartly. Later this year, POSB Smart Buddy users will be able to put what they have learnt about money management to practice via the POSB Smart Buddy mobile app with its new 'Insights' feature. They will also receive personalised tips on how to manage their allowance or savings goals better.
Yap Keng Hwee, Deputy CEO of Empact, and a bank customer who has a daughter aged 19 and a son aged 15, said: "I have always believed that financial literacy is a critical life skill, and that early exposure along with age-appropriate instruction would greatly enhance our children's financial independence when they enter adulthood. Even though the Ministry of Education (MOE) has made significant strides in enhancing our world-class education system, it remains predominantly academically focused, which leaves parents like me with the responsibility to independently teach our children how to manage money.
With POSB adopting a progressive approach to teaching financial literacy from a young age, it helps lay a solid foundation for parents to build upon when discussing money management with our children. Additionally, it is crucial to retain knowledge of handling physical currency - counting and managing notes and coins - since our kids might one day find themselves in countries where physical currencies remain the only means of transaction."
Making financial literacy accessible anytime, anywhere
Parents and their children can tap on POSB Smiley Town, an interactive mobile web-based game, to reinforce money management skills learnt after attending the bank's financial literacy programme. It is a public game that does not require school sign-ups, making it easy for everyone to join. The game is designed to cover basic financial literacy lessons in a fun and positive manner.
For more information, please visit this link.
[1] Some canteen food prices rise, MOE says schools will ensure meals kept affordable (Source: The Straits Times)
[2] Earlier in May, an analysis of the bank's proprietary database of more than 70,000 POSB Smart Buddy users (made up of school children aged six to 16 years old) revealed that the average monthly spending per student increased by 11% y-o-y, while their monthly savings rose marginally by 1% y-o-y.
[3] The importance of financial literacy: Evidence from Singapore (Source: Cambridge University Press)
[END]
About POSB
A part of the DBS Group, POSB is the largest and oldest local bank in Singapore with over four million customers. Having served generations of Singaporeans for the past 147 years, it is known as the "People's Bank", and prides itself on being "neighbours first, bankers second".
POSB takes pride in supporting the community's everyday needs and helping individuals, families, and businesses to become better savers. It stands at the forefront of change by providing pioneering financial solutions and services - across savings, borrowing, investment and insurance - that cater to the evolving needs of Singaporeans.
As a trusted member of the community, it is also committed to giving back to and standing alongside Singaporeans. From inculcating healthy financial habits to promoting digital literacy, POSB seeks to enrich neighbourhoods and uplift the community.
For more information, please visit www.posb.com.sg