Three reasons why The Barefoot Investor isn’t a fan of kid banking programs like ‘Dollarmites’

The Barefoot Investor is not a fan of school banking programs such as the Commonwealth Bank’s Dollarmites and has backed an investigation from the corporate regular.

The Australian Securities and Investments Commission said there was “limited evidence” to suggest they had any sort of impact on saving behaviour.

Tom Elliott says he “can’t see the harm in it” but Scott Pape said there were three reasons he wasn’t a fan.

“Firstly, research shows it doesn’t work,” Pape said on 3AW Drive.

“Secondly, the financial literacy of students has gone nowhere in last decade.

“And my main point is that leaving an essential life skill like financial education up to the largest issuer of credit cards is kind of like leaving Ronald McDonald to teach our kids about food and nutrition.

“It just doesn’t work.”

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