The Sunday Mail
Livingstone Marufu
ECOBANK Zimbabwe, a unit of Togo-based Ecobank Transnational Inc, will roll out products designed to promote financial literacy and inclusion. The bank has unveiled a junior saver account plan to inculcate a culture of savings in young people, especially those below age 14. Ecobank said last week young people needed to be motivated and offered incentives to get used to saving from an early age.
“The Ecobank junior saver account is ideal for children – from age 0–14 years – for savings, while also earning interest on the deposits for the long-term. We need to catch them young and teach them the value of saving for their future.
“In the words of Benjamin Franklin, ‘Tell me and I forget. Teach me and I remember, involve me and I learn’. “At Ecobank, we believe that it’s never too early to teach a child money management: whether from weekly allowance or money earned by doing chores – a child can make the best use of that money through savings.
“For starters, it’s great to make saving fun. “Secondly, the earlier you start teaching your children to save money, the better off they’ll be; and, thirdly, help your child understand that some items will take longer than others to save for,” said Ecobank.
The bank offers rewards for children who do not withdraw for a certain period of time. A child gets a loyalty card after a year. Recently, the financial institution launched a facility that enables the rural population to access banking facilities. Banks are increasingly embracing previously unbanked segments of the market.
A fortnight ago, the bank emphasised the need to cater for those that feel the need to bank even the smallest of amounts. “In simple terms explain to your child the importance of saving and set a good example- one of the best things you can do is let your child see that you save money too.
“Come with your child to the bank (whenever you can). This will show your child that saving is ‘normal.’ Besides, most young children want to be like their parents, seeing you do it will provide them with lessons about money that further inspire them to save. “Help your child to prioritise – have an older child write out a wish list (if your child is older than 10 years he/ she can do so on their own) of things he or she wants to spend money on and prioritise that list.
“Ask your child to think long-term as well. “These are the beginnings of a financial plan and this type of thinking will serve your child well in the long run and a ‘savings match’ can be a great way to encourage your child to save extra money and get an early peek,” added Ecobank.
Ecobank Group, whose assets are worth US$23,4 billion, has over 11 million customers. According to a 2014 Finscope survey, 70 percent of Zimbabweans were unbanked and only 14 percent of owners of SMEs have bank accounts. In addition, the 2014 World Bank Consumer Protection and Financial Literacy Diagnostic Report revealed low financial literacy in Zimbabwe.
