Let's talk finance today...Growing up most of our parents did not equip us with the financial basics, stuff like saving, budgeting, and all the finance bits.
What Mama Taught Me ...
Well, my mom taught me a little bit about budgeting when she gave me pocket money for school, or sometimes she would take me with her to the ATM or bank when she needed to withdraw some money. I also saw her document expenses in a little notebook ( now I have this app I use to do that ). But that was it.
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I personally opened my first bank account when I was in High School, a CRDB Account, they had their marketing people in the school and that is when I seized the opportunity. I got another chance to open an NMB Account when I was in JKT, but never got a chance to use it.
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But now I know Better ...
But now am a grown-up and I am more knowledgeable about finances, have listened to lots of podcasts, read lots of finance books, attended meetings, etc. And I think we need to use what we know as an advantage to equip our children with financial knowledge so that they can grow up with that knowledge embedded in them as a part of their lifestyle.
One other thing I don't really remember seeing my parents saving for my school fees, all I remember is that my parents looked for school fees when it was time to go to school which was a bit challenging sometimes.
But now I know better, it is best if you save for your kids as earlier as possible. Open them a savings account while they are still young so that when it is time to start going to school you already have the school fees part sorted.
Save School Fees For Your Children when they are still infants...
When your child is a few months old, do intensive research on what school you would want them to attend, then ask for the annual school fees. This will help you know what amount you should save per month, just divide the total fees by 12 months then start saving.
You can even request a Standing Order from your bank. So when the child starts school you won't have any headaches, and keep that continuous to cater for all the school years.
Standing Order - an instruction to a bank by an account holder to make regular fixed payments to a particular person or organization. - Oxford Dictionary
Good luck!
So here are some bank accounts that you can open to save for your kid(s) ;
1. CRDB - Junior Jumbo Account
Features
- The freedom and flexibility of selecting the type of currency to save (TZS, USD, EUR, GBP)
- Initial Opening Balance - TZS 20,000 | USD, EUR, GBP) 20
- Earns interest on deposits
- No Joint Account operation. Only one account is allowed per child.
- Customers are limited to only four (4) withdrawals per year.
- No operational fees(monthly fees, or withdrawal fees)
- The account is for children below 18 years
- Child’s Birth Certificate
- Two passport-size photographs; one of a child and one of a parent/guardian
- Parent/Guardian valid ID (NIDA ID, Voters ID, Passport, Driver’s license, Zanzibar ID)
- Opened in the names of the minors but operated by the registered parent/guardian
- Interest is accrued on a daily basis and payable on an annual basis
- Eligible for free NMB Identity card
- No monthly maintenance fee
- Free cash and on-us cheque deposit
- Applicant should be below 18 years of age
- Legally Accepted Identity Card of the Parent or Guardian
- Legally Accepted Introduction letter of the parent/Guardian.
- Birth certificate or affidavit of the minor
- 2 recent passport photos with blue backgrounds for both minors and a parent /guardians.
- A minimum of TZS 10,000/=, USD 5, EURO 5, or GBP 5 for opening an account.
- Invest /deposit a fixed, small amount(Minimum balance – TSH 10,000)
- Make deposits for a period of 3 / 5 / 7 years in both TSH and USD and earn competitive interest
- Age criteria: 18 years and below
- Birth Certificate of the child
- 3 passport-size photographs of the child
- Two withdrawals per year
- Interest ( TZS 5 % pa , USD 1 % pa)
- Free Internal Transfers
- No monthly fees
- Minimum opening balance: TZS 50,000 /USD 250
- Subsidized (discounted) banking fees
- No monthly maintenance fees
- Competitive interest rate
- Exclusive to children under the age of 18
- Child’s birth certificate (mandatory)
- Two recent full-color passport-sized photos of the child and parent or guardian
- Valid identification document ( Passport, Driver’s license, National identity card, Voter’s identity card)
- Residential address verification for parent or guardian
- Valid passport, resident or work permit for non-citizens
- No limit/restrictions on withdraws
- Interest is offered on a tier basis on the average balance
- Free inter-transfer and standing order with a Stanbic account (from parent to child account)
- Debit card to be offered to those with age above 12 years (upon request from parent/guardian)
- 1 passport-size photograph.
- Introduction letter from your employer/ Ward Clerk
- 2 passport-size photographs
- Valid ID (National ID, Passport, Work/Resident permit for non-Tanzanians)
- Original Birth certificate.
- Passport if the child is non-national of TZ.
- 1 Passport Photo.
- For children below 18 years old
- Available in Tanzania Shillings only
- There is no minimum operating balance
- Once withdrawal per quarter
- No monthly maintenance fee
- ATM card is not provided
- PBZ Mobile Alert
- Copy of birth certificate or affidavit of the child
- One child passport size and one passport-size photo of the parent or guardian
- Photocopy of identification card (ID) of Guardian (Zanzibar ID, National ID (Tanzania), Driving license, Voter ID, Passport)
- Annual interest of up to 70% of the Central Bank Rate
- One free withdrawal per quarter
- An annual club fee applies for Junior Eagle Club members
- Free internet banking
- Free ATM deposit
- Free mobile banking access
- Bonus interest if not more than 1 withdrawal per quarter
- Free bundled maintenance fee
- Free counter cash withdrawal
- Chequebook is not applicable
- A free debit card is available for the first issuance
- Original birth certificate or adoption papers if the child is adopted
For the guardian
- Valid identity card (driving license, national ID, passport, or voter's ID)
- Introduction letter from employer, from local government, or from a lawyer
- Residential address letter from local government or utility bill receipt
- Completed account opening application form
- You need a low amount for opening and operating balances.
- You are entitled to two free withdrawals in a year.
- An identification card will be issued to you upon request.
- The parent or guardian opening the account will need to provide their original ID and a copy.
- The child’s original birth certificate and a copy will also be required.
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