Child Savings Plan Kicks Off With Banking Orientation

Mr. Mony, a representative from AMK Bank gives a

presentation on banking and savings to the children

A representative from Angkor Mikroheranhvatho Kampuchea bank (AMK) came to Aziza's Place and provided an orientation on banking and savings to the resident children and staff. Aziza's Place and AMK are working together to develop a child savings program, an idea proposed by AP Intern Michael Johns. The public school system in Michael's native country of Australia offered a child savings plan to students and he grew up understanding the importance of saving. While researching Micro-finance Institutions in Cambodia, Michael realized that his childhood experience of building up savings would be a positive concept to translate to the residents of AP. Currently no other child savings plans exist in Cambodia.

     AP residents receive a small weekly allowance and although their savings would initially be rather small, establishing their bank accounts will set the stage for understanding the concept of saving for their future. As the culture in Cambodia tends to be skeptical of banking, AMK and AP are working to create a foundation of trust in banking institutions. Each child will open their own account in the coming weeks and Aziza's Place will be the co-signatory for the accounts. The children will not have the ability to withdraw money until they are 18 years of age. Furthermore, AP intends to create an incentive program for the children to save throughout the year by matching a percentage of their annual savings. When residents graduate from Aziza's Place they will have a small amount of money saved up for their future and have an understanding of the importance of saving for the rest of their lives.

     Michael began researching Micro-finance Institutions in order to create a partnership for the Community Outreach program before realizing it would be a great opportunity for the AP residents. His research identified AMK's operations as one of the most notable and believed the bank to be critical to the micro-finance industry in Cambodia. In the future AP will work to teach the families in the Community Outreach program about banking and savings and use the child savings scheme as a model to for children to incentivize their families to begin saving as well.