SINGAPORE – The concept of providing a debit card to a young child might seem unconventional, but for some Singaporean parents, it has become a practical and educational tool. One such parent is Ms Jeaneve Wee, who decided to lend her debit card to her 11-year-old son, Jayden Hor, when he ventured out with friends for meals. Emphasizing the evolving needs of children, Ms Wee remarked, “From the time they start primary school, they should be learning how to buy their own food.”
In October, OCBC Bank introduced the MyOwn account, enabling children aged seven to 15 to have their own debit cards. Ms Wee embraced this opportunity by opening accounts for Jayden and his 10-year-old sister, Kaitlyn. She appreciated the instant push notifications that parents receive through the OCBC banking app whenever their child makes a purchase using the MyOwn debit card, providing visibility into their children’s spending activities.
Another feature that landed favorably with Ms Wee was the ability to set spending limits across various payment mediums. Describing its appeal, Ms Wee stated, “It’s customised – it’s not one limit across all.” Notably, within the first month of its launch, more than 10,000 MyOwn accounts were opened, with half of the new users falling in the age group of 12 to 14.
Ms Michelle Wan, a 39-year-old entrepreneur, also found the MyOwn debit card beneficial for seamlessly transferring allowance to her nine-year-old daughter, Desirae Chan. Through this platform, Ms Wan was able to instantly provide her daughter with pocket money, easing concerns about arranging lunch for her when she was away. The MyOwn account also transformed the process of distributing pocket money for Ms Wee, who used to provide cash but now handles it digitally.
While some financial experts argue that debit cards alone may not be sufficient to instill prudent spending habits in youth, both Ms Wee and Ms Wan have employed the debit card as a tool to educate their children on responsible spending. According to Ms Wee, the access to their bank balance via the bank app has empowered her children to make informed decisions with their finances.
However, not all Singaporean parents are enthusiastic about the prospect of debit cards for their children. Ms Helaine Wang, a 36-year-old laboratory manager and mother of seven-year-old twins, expressed skepticism about the idea, stating, “We still think that they need to learn basic money counting with physical cash, and tapping away with a debit card doesn’t really teach them to control their expenditure.”
In conclusion, the introduction of debit cards for children presents both opportunities and challenges, enabling parents to impart financial literacy and responsibility at an early age. The experiences and perspectives shared by Singaporean parents reflect the diverse attitudes towards this evolving trend.
