New vs old banking trends

14 Sep

A bank in Switzerland has recently launched a new way for children under the age of 12 to save money. They have launched a digital piggy bank. The children put the coins into the piggy bank and the value is automatically added up and the children can see the total in an app.

I’m not sure how I feel about this. It is good to get children into the habit of saving from an early age. I always had a piggy bank when I was younger. It was always a tough choice of whether to spend my pocket money straight away or to spend it on sweets at the village post office. My piggy bank, which was transparent, sat next to my brother’s on a shelf in the kitchen. Whenever I was thinking about going to buy sweets I would have a sneeky peek through the clear perspex box and see roughly how much money he had and to make sure he hadn’t got more than me. That and that alone decided if I bought sweets that week.

The best thing about having a piggy bank as a kid was being able to empty all the money out and count it myself, whenever I wanted to. Sometimes I felt rich. I had almost £6! This was back in the 80s/early 90s when I could get a 10p mix from the post office or really splash the cash and get a quarter of midget gems for 45p. For my younger readers, a quarter is 113 grams.

I even had a slip of paper where I would note down how much I had saved each week. Yes, even from an early age I was showing indications of my future career as a finance professional. It was exciting to see how much more money I need to save in order to buy a new CD or my favourite magazine.

Young people are criticised a lot when it comes to money. Older generations complain that they buy things on credit and don’t understand the real value of money. I am inclined to think that having a digital piggy bank will not only take away that excitement of counting your own money but also convert money into a virtual rather than a real concept for the next generation.

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We have probably all been in the situation when the credit card bill comes that we are horrified at how much is owing. I have on more than one occasion been convinced that I have been a victim of fraud. I have definitely not used my credit card that much this month. I am an innocent victim of crime. Then after reading the itemised bill, you realise that you can’t blame a fraudster – you have spent that much but because you weren’t physically handing over money to a cashier, you have lost all sense of spending and now you have to eat bread and water for a month in order to pay the bill.

Of course, we are moving towards a money-less culture, in which all transactions are conducted virtually. Apple watches have been around for a while and more and more apps and gadgets are coming on the market to make purchasing goods easier.

Maybe I am just stuck in my ways and I’m showing my age but I don’t think that children should be denied the opportunity to count their pocket money themselves and have that feeling that this week they are richer than they were last week. In fact, I still occasionally do this now.

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