Teaching kids how to save money at a young age through student bank accounts such as ‘Dollarmites’ is great, however is there something a little more sinister behind the initiative than we realise?
Australian Consumer Group Choice seems to think so, and they’re calling for a ban on these school banking schemes.
It’s understood student banks, such as the Commonwealth Bank, actually pay primary school’s when new accounts are opened with them.
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Choice believes it’s one big marketing ploy, with the bank basically paying to get young customers on board with them early.
“School banking programs such as the Commonwealth Bank’s Dollarmites program give banks unfettered access to market their brand to schoolchildren,” chief executive Alan Kirkland told The Sydney Morning Herald.
“It is time to take banks out of financial literacy education, and to stop them from paying schools commissions to flog their products.”
The Commonwealth Bank says the Dollarmite’s program is not only a “fun, interactive and engaging way for young Australians to learn about money and develop good saving habits”, but also “a great fundraising activity for schools”.
“It’s also a great fundraising activity, with participating schools receiving 5% of every individual deposit made at school (up to $10), along with other benefits.”
The long-running program has been around since 1931.