Unique finance system aimed to give kids in impoverished areas a safe place to store their money.
The Children’s Development Khazana is a unique banking system exclusively for children. Furthermore, its branches are also staffed by children, with only an adult bank employee who is only present to collect the money at the end of each day, and depositing the cash in a nationalized bank. The kids’ bank started in New Delhi in 2001, and has since expanded to more than 200 branches in half-a-dozen countries.
A lot of the customers that walk into the Children’s Development Khazana bank are street kids who earn just $1 a day. When they wish to withdraw their savings, they are first scrutinized by the other children working at the bank.Karan, a 14-year-old ‘manager’ at the bank, explained that, “Some account holders want to withdraw their money. I ask them why and give it to them if other children approve. Everyone earns five per cent interest on their savings.”
The bank was set up by Butterflies, which hopes to give children in impoverished countries the chance to genuinely save for their own future. Sharon Jacob, who works for the rights group, commented that:
They work in shops as hawkers or porters but they never had a safe place to keep their money. They were always cheated of it or somebody also stole their money. So this is a place where they could keep their money safely and they are also taught life skills, how to manage their finances. They are taught budgeting, they are taught democratic participation.
Photos courtesy of France 24