Bank offers parents a head start on saving

By Liz Gooch
February 22, 2005

A bank that gives money away. Sound too good to be true?

That's exactly what families in an ANZ pilot project thought before the bank tripled their savings, helping them save for their children's education.

ANZ has contributed $481,000 to the bank accounts of 257 low-income families in Victoria and NSW as part of a matched savings scheme that also teaches money management skills and financial literacy.

Personal coaches helped the families start saving, and the group saved a total of $240,500 in a nine to 18-month period.

For every $1 a family saved ANZ contributed $2. The average amount families saved was $936.

The families, from Frankston, Shepparton and Campbelltown in Sydney, had to spend the money on educational expenses such as computers, books, uniforms and school camps.

A report by RMIT University says the pilot program improved the families' quality of life, giving them support networks greater confidence and longer-term financial wellbeing. Parents were able to pass their new financial skills to their children, said one author of the report, Dr Roslyn Russell.

A participant from Frankston told researchers: "Being made to think through expenses and writing it down was scary at first but it was a very useful exercise as you realise where the leaks are."

Another Frankston parent said: "For my kids, it has been really good. When we go shopping, they are actually saying 'we don't need that mum', or 'we can get a cheaper brand here mum', and they actually get involved."

The Brotherhood of St Laurence, which helped conduct the program in Victoria, said some parents could now afford the extra costs associated with certain school subjects.

ANZ has committed a further $1 million to expand the Saver Plus program this year.