SINGAPORE: POSB has introduced a new programme that encourages students to save more effectively. The Smart Buddy 2X Savings Booster, announced on July 19, offers students up to S$10 monthly if they regularly save part of their allowance.
The initiative is part of POSB’s broader goal to help over one-third of primary and secondary school children collectively save an extra S$35 million by 2026.
The Straits Times reported that according to recent data from 70,000 POSB Smart Buddy users between ages six and 16, while students’ monthly spending has increased by 11 per cent year-on-year, their savings have only grown slightly by 1 per cent. This is partly due to higher food prices at school canteens.
The Smart Buddy programme allows parents to set a daily or weekly allowance for their children, with any unspent amount in their Smart Buddy account considered savings.
Unlike a traditional ATM card, the Smart Buddy card or watch does not permit cash withdrawals, focusing instead on helping children track their savings.
The new Smart Buddy 2X Savings Booster enhances this programme by matching every dollar saved through a digital “Smiley Stamp.” Each stamp, worth 50 cents, can accumulate up to 20 stamps per month, amounting to a maximum of $10.
These will then be credited to students’ POSB Smart Buddy-linked bank accounts in the following month.
To qualify for the savings booster, students must make at least five eligible monthly purchases using their Smart Buddy card or watch. Eligible transactions cover purchases at stores that accept Nets, including McDonald’s, 7-Eleven, and FairPrice.
In addition to the savings scheme, POSB is expanding its financial literacy efforts.
The bank has been organising workshops to teach students about distinguishing between needs and wants, making wise spending choices, and understanding the value of saving.
These workshops also cover currency recognition, money counting, and cashless transactions.
By 2026, POSB aims to offer these workshops in at least 100 Ministry of Education-run primary and pre-schools.
The bank will also collaborate with the People’s Association (PA) and the National Library Board (NLB) to extend financial literacy programmes to local community clubs.
Nelson Neo, head of POSB, highlighted the importance of early financial education:
“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.” /TISG
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