? Cool Title, but what’s the news?
Since the launch of Madhya Pradesh government’s Arunodaya Gullak Yojana in 2007, around 6,000 children deposited Rs one crore in the gullaks (piggy banks) that were given to them by 26 cooperative banks at various branches.
? Okay, but what does it mean?
Under the scheme, the piggy bank savings account can be opened by parents of a child since his birth with just Re 1. Banks are also giving loans on these deposits for purposes like pursuing higher study, setting up businesses, for marriage and other goals in life.
These banks accounts are jointly owned by the child and his/her parents
? Why should I care?
For three simple reasons, one, this means that there is no specific age when you should start savings and the earlier you start the more benefit you’ll reap. Secondly, this reiterates the power of small savings that can get compounded over a period of time and give exceptional returns. And thirdly, is inculcating the habit of saving in your child right from a young age. Which will help them succeed in their future life.