We know the proverb “gradually becomes a hill” or in the Indonesian language “sedikit-sedikit lama-lama menjadi bukit”, which means that if we save early, then in old age we will harvest the results. And yes, it is a proverb that we have known since elementary school. Our parents and teachers teach us to save from childhood so that we understand the concept of finance and also teach that if we want to buy something we have to try by saving our pocket money.
However, many children and teens do not understand the system of saving at conventional banks. By providing an approach that can be understood by children and youth, saving can be fun and also triggers children to save from an early age.
This case study is a design challenge for HSBC’s banking reimagining system intended for kids and youth in Malaysia given by Aleph-Labs so that they can learn how to manage their financials from an early age.
In this case study, I was asked to create a bank savings system for children and youth that is easy and fun to do. Besides that, make a quick deposit in a fun and straightforward way. Due to time constraints, I did only desk research through searching for financial literature for kids on the internet and also with my assumptions about this problem.
What are the objectives?
In this case, the objectivity that I want to explore is to find out the behavior of children and adolescents in saving and also to find out the needs of children and adolescents when they want to save in the bank.
Creating a banking system that is simple and fun for children, so they can use banking applications continually to create awareness in saving/growing money for their future needs.
The research — desk research
Due to time constraints in completing this study case, I decided to use the desk research method. And I found an article about research from the simple dollar on finding out about money from toddlers to teenagers.
The 2015 financial literacy assessment by the Program for International Student Assessment (PISA) found that nearly 80% of young people aged 15–24 made payments online. And a 2015 Standard & Poor’s survey found that only 57% of adults are financially literate, with a solid understanding of key concepts like inflation and interest.
And the 2017 Parent, Child & Money Survey conducted by T. Rowe Price found that parents who discussed financial topics with their children were more likely (61% vs 41%) to have children who said they were money smart.
With Generation Z — also known as Digital Natives — beginning to come of age, it’s time to combine tried and true financial wisdom with modern solutions to teach our children how to survive, and even thrive, in a world without cash.
Age category regarding the financial system
according to research results from the simple dollar says that there is a financial categorization based on the age of the child.
Age 3–6: introducing money
At that age, children should begin to understand the concept of arithmetic, so that this is the right time for them to introduce the concept of money. Besides that, there are four essential for children with us 3–6 years to learn about earning, saving, spending, and giving.
Age 6–10: how people spend
Begin to enter the age of 6 years, children begin to understand about understand cause-and-effect relationships and change their views about perceiving money. At this time children may see that money is directly tied to items, parents work for money, money spent differently (smaller items, like a book, may only require one purchase, while larger items, like a house, require multiple payments ), and some purchases are made without physical money. And at this age, children should be taught the difference between spending money so they can gain an understanding of how others spend their money while laying the groundwork for building budgets in the future.
Age 11–13: introducing consequences
At this age, they begin to develop a sense of reason, long-term consequences, and complications, changing from being emotionally driven to rationally driven decision making. A child starts to want freedom, spending more time with their friends than their parents. Besides, they will expand their financial knowledge to include long-term consequences.
Age 13–15: building wealth
When kids turn into the teenager, they begin to understand abstract concepts and develop a sense of long-term consequences. Teenagers also hone their memory and capacity for reason, while actively starting to distance themselves from their parents. And at this age, they agreed on a financial concept to strengthen their finances by introducing work, banking, and investing.
Age 15–18: Preparing for the real world
Mid-to-late teenagers can process complex problems and fully imagine the future consequences of their actions. By now, the child has a solid foundation of financial literacy — from the essentials to more complex ideas of growing wealth. And It’s a good time to talk about the most significant expenses they’ll likely ever have such as taxes, good vs. bad debt, and also credit scores and credit reports
The findings and insights
From the research results, I was found that:
- There is an adjustment of financial knowledge based on the child’s age category
- The research results found that children from the age of 6–13 years. They only understand basic finances, such as save money, where the money comes from, sorting money for needs, and also the consequences if the money runs out. so they need a simple and efficient flow that is devoted to saving and transferring their school needs that are easily understood by their age under parental supervision.
- While ages 13 and older, they are taught how finance works. With the help of banks to make it easier to manage their finances in the future. At this age, features such as deposits and investments have been taught with the help of their parents. At this age, they have to tutor how to invest, taxes, and credit scores work for them.
- Nearly 80% of young people aged 15–24 are familiar with online payments.
- Only 57% of adults are financially literate, with a solid understanding of key concepts such as inflation and interest.
I also looked for comparisons of banking applications that can be found in Indonesia, with a target user that can be used by teenagers. I found the features of the banking app in Indonesia based on Google play store & the official website.
then i came up with the problem statement with HMW method,
How might we / I make an app for kids and teens to understand using banking applications and help them prepare for their finances in the future?
what features are suitable?
After did desk research and comparative apps, I proceeded to do a 2x2 matrix to help me to make prioritize features that should include in the application so the user does not overwhelm in using it. This step also how to answer HMW questions.
To focus on the application, I divided it into 2 groups of age categories, 6–12 years old for children to understand basic calculations, save money, where the money comes from, sorting money for needs, and also the consequences if the money runs out. And 13–18 years old for teenagers, they are taught how finance works. With the help of banks to make it easier to manage their finances in the future. At this age, features such as deposits and investments have been taught with the help of their parents.
The journey and flows - Create a bank account
I made two ways to create a bank account. The first way they can visit the offline office to create a bank account, get a physical card, and so on. The other way is to “catch the ball.” Seeing the busyness of parents to visit the bank office, I made a way to create an account through the application, and the bank officer will come to complete the data as a requirement in creating a bank account and deliver a physical card to be used as a transaction.
I made flows in the transfer that simple and easy way to do. They only need to enter the bank number/telephone number/username that is already registered. This stage may require the help of their parents to enter the bank ID/username. Besides, they can also transfer by scanning the QR code to shorten the time to input the recipient’s data.
I also created this flow so that the children understand in buying the things they want, they have to save and make their own dream list. apart from the function of the bank as a depository for their finances.
Frank H. Mahnke from his book Color, Environment and Human Response, guidelines for choosing colors based on the age of kids especially for Academic environments
- Pre-school and elementary school-Warm and bright color schemes are ideal.
- Upper grade and secondary-Cool colors are recommended to enhance concentration
That became my reference in making the design system for my prototype. I used a red color, which is also derived from the HSBC brand. And even a few colors as additional colors so that children are more interested in seeing it. I used the Poppins font that looks round so that it seems friendly to children, and doesn’t detract from the HSBC brand.
The character for engaging the kids
Therefore, I have an idea to create characters that can motivate children to save and can also provide information about the features in the application.
The HiFi — home screen
Referring to the research and also the pain points that I got for children 6–12 in managing their finances is to provide knowledge about saving, earning, spending, and also giving as a primary reference in basic financial transaction features.
I also made gamification so that children could be interested in using the application. The tasks on gamification aimed at allowing children to continue saving at the bank so that they get points that can be redeemed later.
If they withdraw their money, this does not affect their points of gamification. But they must equalize the present balance in their savings to the progress bar of gamification and will be able to proceed to the next task.
To express the personality of each kid, I also made a virtual card that the image could be replaced. By buying the image with redeeming their points generated from gamification before. So that children can be active in saving money in HSBC banks.
Mockup HSBC app
What is next?
Many things have not been resolved due to time constraints. The next step I want to do is do user testing on children and youth. whether the flow that I made is what they expected or not. And also an iteration of the results of the flow and UI design to make this app better.
Parents need to provide financial knowledge early for their children. That will motivate them that money doesn’t grow from the trees. And they have to save money to be able to buy the things that they want. Many things can be done to provide information about it. One of them is by using an application that can be understood by children.
That was an excellent opportunity to learn how to design a bank system and can understand by children. Many shortcomings with the design step that I did because of the deadline, but I am delighted in doing it. The most challenging was in the research of the bank system for children, because of the lack of knowledge about it.
Thank you for reading this study case. If you have any thoughts, you can reach me on my Linkedin or can through my email: email@example.com.