I was really excited to learn about a program offered by PNC, featuring Sesame Street, for children called “S is for Savings.” Anytime Elmo teams up with a bank, it has to be an excellent promotion for every Muppet in us.
Looking through the program, it looked like there was some great potential.
- An interactive online banking experience that allows you and your child to set goals for saving, sharing and spending
- A Learning Center to further explore savings concepts through audio and video clips, fun activities and even “tips” from Elmo
- The option to create a separate login, allowing you and your child to enter the experience directly, without access to your other accounts
- An Auto Savings tool that lets you start a routine to help your child achieve their savings goals
- Interest on balances starting at $1.00
- Just $25 minimum balance to open and no service charge for account holders under 18
Sounds good, right?
Reading through their guide, they give lots of really great advice for little pointers to help teach your kids the value of the dollar. I especially liked that you could download jar labels to help distinguish with your children various options with money.
It is funny because we have been experimenting with this exact method with our 2-year old over the past week or so. We noticed that Bug has been going through a “hitting” stage, as do all toddlers, and we have been trying to figure out a productive tool to teach him the “value” in not hitting. So we have been rewarding him with a quarter for every day that he does not hit his brother or the babysitter’s kids. In addition, we read to him a new book my wife picked up “Hands Are Not for Hitting” by Martine Agassi, Ph.D.
When I get home from work everyday, my wife lets me know whether there was a hit report or not. Each day there is not, which has been everyday since we implemented this program, we reward him with a quarter. You have no idea how much joy Bug gets out of receiving a shiny coin. We then place it in a special jar, separate from his piggy bank.
Here is the key though. He is only 2-years old, so we need to take steps to really help him grasp that collecting quarters means something of even more enjoyment. So we took him to the store and allowed him to pick out a Cars vehicle for his collection. Grant it, we had to chip in to make the purchase because even after a week or so of collecting quarters, there is not enough to purchase an overpriced, Disney Cars vehicle, but that is not the point. We hope we have not only taught our toddler the value in not hitting, but also saving your quarters to get something of greater value.
So back to the PNC’s “S is for Savings” program.
As long as the custodian is under 18 years of age, there are no fees on the accounts, which I think is great. Ok, I am all on board to open up accounts for our boys. What are the rates?
After entering in our zip code, the rates were 0.01% across the board. This is where I have a problem. The whole idea is to instill in kids the value of saving. Kids need to see some type of cause and effect. Yes children can draw the conclusion that saving money means various thing, but I think it is a lot harder concept to grasp at a young age. Where I think children could really learn the value in saving is with interest, by learning save your money to earn more. Even when we took Bug to purchase his Car with his quarters, we paid him interest in the fact that we made up the difference in cost. I think even he is too young to fully grasp the interest concept, but you get my point.
The interest rate on a children’s saving account should be something respectable, if PNC really wants to teach the kids the value of money. I think there is something morally that PNC should be doing to give kids a higher interest rate. Sorry Elmo, even your addictive song and dance can not make me want to put my kids money in this account.
I also think the “S is for Savings” is a WONDERFUL tool. Creative, fun and educational.
I do have to disagree with the comment on Interest Rates. Has this person checked interest rates in general right now. they are down EVERYWHERE. I also checked the rates in my area. They are the same as his area. They are also the same in the checking acoounts and the statement savings account for PNC. At least they are giving them interest.
I’m sure as things get better in the economy that PNC would readjust the “S is for Savings” interest just like they would adjust their other accounts.
What you pointed out is the reason that we don’t currently have a savings account for our near two year old son (despite having a years worth of quarters in his piggy bank and another years worth in less than a month). I’ve tried to get hubby on board with the idea of a bank account being a GOOD thing in terms of learning to save but I can’t seem to get him to agree when the value of it doesn’t really go up at all (.01 as you pointed out is extremely low.) The other issue I’ve found is so few banks even offer a kids program or if they do the fine print has a surcharge that negates the value of putting it in a bank in the first place over a jar at home. I’m irritated by the idea that putting it in the bank isn’t a good enough value anymore but the next step up (putting it in a mutual fund of some sort) is too far/too expensive for the $10 or $20 that a relative would give him for a gift.
I contacted PNC regarding my daughters account which had not acquired any interest…not even a penny at $177.12. They said that at the interest rate of %0.01 she had too little in her account to earn interest. I called them on their $1.00 statement which states Interest on balances starting at $1.00. I received no response to my email.
The point of having a savings account is to instill in them the idea and benefit of “saving money”. People tend not to spend it so quickly if it is out of reach (in a bank, etc.).
If you want to see interest acrue, then a bank is not the place to put your money. Try IRA or another long-term investment.
We have about 18K in a Premium Money Market account at PNC and it only earned a little over 5 dollars last year.
Savings accounts, not working too well for earning interest, but helping you to save your money.
I just signed my 9 and 10 year old up for these savings accounts. Does anyone know if you can turn off the Sesame Street stuff?
Jeff