Saving? It’s Elementary, My Dear.

Children Deposit Allowance as Branch Bank Opens at School

By Michael Alison Chandler (Contact)

Tuesday, November 20, 2007

Eight-year old Mackenzie Dorsey stopped by the gymnasium at Potowmack Elementary School in Sterling recently to open a bank account before heading to her third-grade class.

She handed an envelope full of bills to a fifth-grader, and he gave her a deposit slip from Cardinal Bank for $50.76. Her accumulated allowance money, she hopes, will grow until she can afford a video camera.

In all, 46 students opened accounts last week on the initial day of Soaring Eagles Bank, the first school-based branch of Cardinal Bank to open in Loudoun County.

While the rate of personal saving has plummeted across the country, financial literacy programs in schools are on the rise. The state of Virginia passed a law in 2005 requiring that middle and high school students learn the basics of economics and personal finance.

But some educators and financial institutions are trying to instill an ethic of saving even earlier. At least three elementary schools in Loudoun have partnered with Middleburg Bank for educational programs about saving money, and Cardinal Bank also has student-run branches at schools in Fairfax and Prince William counties.

Photo Gallery

A New Bank at Potowmack Elementary

Photo: 0/1

« Previous | Next »

Larger Version

Cardinal Bank's mascot greeted the students in the Potowmack Elementary School auditorium. (Tracy A. Woodward)

Larger Version

Potowmack Elementary School student Courtney Garofolo, 10, talks about the new Cardinal Bank branch at her school. (Tracy A. Woodward)

Larger Version

Potowmack Elementary School students became tellers as Cardinal Bank opened a new branch at their school. Dorothy Chesley, left, and Carly Fort give deposit slips to students who open savings accounts. (Tracy A. Woodward)

Larger Version

George Ardura, 6, brought his savings to open an account at his school's new Cardinal Bank branch. His mother, Mone Ardura, is standing behind him. Student teller Neha Goswami is on the left. (Tracy A. Woodward)

Larger Version

Potowmack Elementary School students who opened a savings account at the new Soaring Eagles Bank, a branch of Cardinal Bank that opened in their school, were given a cardinal keychain that made a chirping sound. This is Megan Woodmarcy. Michael Combs is behind her. (Tracy A. Woodward)

View all thumbnails

“The earlier students begin to learn financial concepts, they will develop habits they will carry with them throughout life as they become consumers,” said Tina Lambert, chair of the board of directors of the Virginia Jump$tart Coalition, part of a national organization that promotes education in personal finance.

The need for such training is clear, Lambert said. Virginia participated last year in a national biennial survey conducted for the national Jump$tart Coalition that measured personal financial literacy among high school seniors, and its students on average answered 55 percent of the questions correctly. The national average score was 52 percent.

At a Potowmack Elementary assembly to celebrate the school’s new bank branch, a giant cardinal gave the excited students high-fives, and F. Kevin Reynolds, president of the Northern Virginia region for the bank, greeted the young investors sitting cross-legged on the floor with a series of questions:

“Who wants to own a car?” All the students waved their hands in the air.

“Who wants to go to college?” All the students waved their hands in the air.

“Who wants to retire?” All the teachers on the side of the room waved their hands in the air.

The Soaring Eagles Bank will be open Wednesdays from 7:30 to 8:30 a.m. The school-based branch is available only to students (sorry, teachers), as is the 5.25 percent interest rate on new accounts.

The deposit-only branch is run by fifth-graders and supervised by a professional teller from the full-service bank. Students can apply for positions as tellers, marketers or managers.

After their first day on the job, some of the fifth-graders described their first professional-style jobs.

Courtney Garofolo said that being in management for the bank involved mostly “directing kids to tellers and being friendly.” Michael Combs said that tellers mainly “count the money and put it in an envelope.”

And Emily Schmid said that marketing means standing in front of the school with signs and appearing on its televised morning announcements.

All the student employees wore uniforms — white T-shirts with the bank logo — and sat at tables onstage. After a yellow ribbon was cut, they opened for business.

A long line of customers formed.

First-grader George Ardura fanned a wad of mostly $1 bills, but also a few $50s, in front of his face. He grinned broadly to show the primary source of his life’s fortune. Six missing teeth, at a going rate of $20 per tooth, add up fast.

George said he’s not sure what he wants to do with his more than $200 in savings. “Maybe buy toys,” he said.

Alexandria McAlpine, 9, deposited $4.50. “My mom gives me a dollar every week when I clean my room,” she said. She would like to save for college.

The opening of the branch was organized by Judith Schmid, a former bank teller and current parent liaison at the school.

She said she hopes it will help inspire children and their families to save more money. Helen Chang-Lin, another parent liaison, emphasized that the next generation will need to be good savers if they want to retire comfortably, because of the decline in traditional, employer-paid pensions.

“Kids need to get into saving now,” she said.

Your Thoughts...

Are you happy that the school year is over?