Money School launched a challenge for children, adolescents and adults: to say what they did with the first money saved and from over 2,500 responses collected by BCR it results that young Romanians are spending their first savings on mobile phones and gadgets.
The study conducted by BCR, through the Money School, shows that, when it comes to the savings and investments that Romanians make with them, the differences between the generations are huge. If people aged between 26 and 79 choose to purchase especially clothing, children and young people aged up to 25 years invest their first savings predominantly in mobile phones and accessories.
According to the study, today’s children start saving early, including at the age of four, while parents and grandparents did this after 18 years. Most children save an average between RON 350 and 800 per year that they spend on bicycles, cameras or TV games, while those who invest most in education are adolescents aged 16 to 20.
“Our study shows how much financial education is needed. No age category places long-term investments such as education, health, pensions, but it is worth noting that young people aged between 16 and 20 give education the highest amounts. I also noticed a difference in the age at which Romanians start to put money aside: today’s children and young people do it at an early age, even four years, while the children before the ’89 just started to during high school or faculty. We believe there is still much to be done about the financial education of the Romanians, which has to go beyond saving, to controlling the personal budget, setting realistic life goals and assuming a calculated and fair financial behavior. By financial independence you can build a better life,” says Nicoleta Deliu, coordinator of the School of Money program.
Here are the main conjectures of the Money School study:
- Children are starting to save at the age of 4 years.
- The first money collected by children aged 11 to 15 goes on bicycles and roller skates, then on toys, phones and accessories in the order of preferences.
- Adolescents – aged 16 to 20 – have spent the first savings on phones and accessories, then on gifts and studies.
- All phones and accessories have been a priority for young people aged 21-25, followed by bicycles, skates and holidays, for the first time in the top.
- Romanians aged between 26 and 79 say they have spent their first money saved on clothes and footwear.
- Mobile and home appliances are getting into the preference for first-time money savings just 26 years old and are even more in the top of preferences with age.
Although preferences differ from one generation to another, a top investment from the early economies of Romanians of any age would look like this:
- Clothes and footwear
- Bicycles and roller skates
- Gifts for others
- Investment in studies
- Phones and Accessories
- Furniture and home appliances
- Laptop / computer
- Car / Driving School
BCR launched the largest financial education campaign in Romania between August-October 2018: For 10 weeks, 1,000 employees offer free courses at 100 bank branches at the School of Money. Romanians who want to get more from their money are expected, until October 18, at the “Money School” courses.
1,000 employees of the bank, ready to act as true financial education teachers, await the participants every Thursday in 100 branches of BCR across the country. Courses are free of charge and take place outside the hours of work with the public of BCR units, which are visually marked and whose availability can be checked at www.scoaladebani.ro.
Testimonies of the Romanians about the first money saved
From the interviews gathered following the BCR study this summer, the youngest “saver” said that he had started this activity for four years and raised RON 350 to buy a bicycle. Another kid raised money in the piggy bank and, 10 years later, decided with his mother “to move to the next level”, so now, at the age of 13, he already has the money in an investment fund.
Among teenagers, there are also some with original investments, from bee-keeping to some online: “With my first money saved (RON 600), we invested in a cryptocoins platform. We started the investment at the age of 15 when I did not have any experience with RON 400. Startingfrom the age of 14 years I started to learn about the crypto world, so I did not allow myself to lose all the money. At present, with an investment of RON 400 (USD 100), the daily profit is one dollar,” explains a 16-year-old girl.
Among the statements are also the anecdotal ones: a young man tells that from the first money saved he took a vase from his mother, because he had broken one and his mother asked him to pay. The other one had a complex financial route:
“My first saved money was at the age of 10 years, somewhere at 100 lei, and I remember that I did not want to spend anything on it, but someday it came to some candies and I took some of that money. After that, there were other small expenses that led me to bankruptcy. Later on, 14 years old, bored with my old computer, I put my eyes on a laptop and made my house clean so my mother would pay me RON 10 a day, plus the money I was collecting on my birthday, everything was going in your laptop account. After a while I was legally working and I got the money to get my laptop I wanted and besides, I still got money for an office, a desk chair and a mouse; I still have my laptop and use it. At age 17, I opened a bank account and put all my savings there,” says a teenager.