Starting them young with BDO Junior Savers Club

Have you ever wondered what to do with the money given to your child? In the Philippines, it is usual (not customary) for some relatives or guests to give ang pao (cash gift) on special occasions. I myself was surprised with those little red envelopes starting from Z's birth, then on her baptism and also on her birthday. Sometimes she also gets those when she visits a house for the first time (may ganon?! hehe) and of course on Christmas too! :)

Photo credit to: http://www.canadiansavers.ca/

So being the excited first-time mom that I am, I immediately proposed to Daddy A that we should open a savings account for Z, instead of us pooling it with the family account. This is something he did not immediately agree with.

Daddy says No, Mommy says Go!

Our child's own bank account has been a subject of discussion between Daddy A and I. While he says that multiple bank accounts may be harder to manage, I still wanted Z to have her own. I hope that as she grows older, she'll be able to appreciate the generosity of her godparents/other sponsors and that we were able to save those gifts for her. We'll have to deal with the nitty-gritty's of maintaining balances, keeping the account current and what not. Besides, it's not as if there's really a lot of paperwork or pencil-pushing to be done at this point. At the minimum, we should just ensure that:

• the account is secure : passbook (and ATM, if provided) and any password is safe and protected
• the account is secured: the amount deposited is backed by the PDIC
• minimum maintaining balance: that we have deposited an amount above the minimum required balance
• the account is updated: that we have transactions within the year so that it is not tagged as a dormant account (banks make deductions / charge fees for dormant accounts)

Another very valid point that Daddy A raised is that because of the current inflation and very meager bank interest rates, money in bank will actually be losing value and the opportunity to earn more had it been invested in another manner. To which I definitely agree. Hence we should also look at other options like stocks or mutual funds or even insurance. I hope I can share with you my experience in a future blog post!

Deal or No Deal?

Having my personal bank account goes way back. I still remember me and my mom personally going to the bank and depositing whatever sum I was able to muster. It was fun to do "grown-up things" then. You know, saving my allowance and cash gifts, counting them (even if they only amounted to Php 500.00 then), filling out the bank deposit slip (with my kiddie handwriting of course!), and actually seeing my account steadily accumulate. Of course it helps that the passbook design was too cute (with a dolphin, I think?) and the bank would usually give tokens for Christmas :)

Aside from wanting to have similar bonding moments too with my kiddo, we want to teach her about capital preservation (at this point) and in the future, evaluating different investment options and (hopefully) making the right choice. Hence, Daddy A and I arrived at a healthy compromise to open an account for Z, with certain reservations.

At this point it was important for us to have discussed as a couple: the minimum and maximum amount we need to deposit, what we should do when it reaches a certain amount, under what circumstances will we allow for a withdrawal, etc.

I knooooow you can just deposit and deposit (or make withdrawals) as you wish but we're two complicated folks who like it that way hahaha :)

BDO Junior Savers Club

Since we already have an account with BDO, it was a no-brainer to open one for Z in this bank. It was relatively a breeze to open the account and we were finished in less than an hour. We were just asked for the following requirements:

• Copy of Z's Birth Certificate
• Our Identification Cards (ID)
• Photos (1x1 or 2x2)
• Opening Balance: PHP 100.00 [the minimum balance to earn interest is PHP 2,000.00]

Please do check out the BDO Junior Savers Page to see other features as well as the fees and charges. 

Oh, they also provide a Junior Savers Club ID which actually bears the same design as their regular ATM card (so much fun in that?!?). This is free but you have to ask them specifically for this and in our particular branch, it took at least 3 weeks before we got the Junior Savers Club Card. 

This can entitle your child to special treats or promotions from partner companies such as those listed below. You can check with your branch as they change the participating merchants and the promotions from time to time.

Well for me this is a good thing. Since we won't earn much from the bank interest anyway, why not maximize the account through the perks (discounts and promos) from partner stores like Brownies, Great Image, Museo Pambata, Manila Ocean Park, etc. I'm particularly excited to use this for Zoobic Safari, Museo Pambata and Manila Ocean Park. What a great way to have more teachable moments with the little one! :) [P.S. And some brownies for mommy won't hurt either! hahaha]

BDO Junior Savers Club Perks!

So what are you waiting for dearest mommies and daddies? Let's start building good financial literacy and life habits by teaching our children to save and to eventually venture in investments and businesses in the future. Happy Saving! :D

Disclosure: This is not a sponsored post. All opinions are my own and not influenced in any way. I only blog about products and services that I have tried and truly believe in so I know that you, my readers, are in good hands.

P.S. We haven't even received a pencil case (as stated in their website). I just really advocate for financial literacy for our children, starting when they are young. I support Bangko Sentral ng Pilipinas' (BSP) Banking On Your Future Program (BOYFP). It is really my wish that the younger generation see money as a tool, not only to purchase goods, but to do good in this world.