THE NEW THRIFT.

Hawera Star, Volume XLVIII, 1 November 1928, Page 2

THE NEW THRIFT.

VICTORIAN EXPERIMENT. SAVING FOR A DEFINITE PURPOSE. SYDNEY, Oct. 11. Last year the State Savings Bank in Vicoria launched a new experiment. Anxious to promote thrift.and to increase the opportunities of earners to save money they began what are known as Definite Purpose Savings Clubs. In this they Were possibly, influenced by the fast that between a place of business and- a savings bank there are hundreds of inducements for spending money, so that the earner who sets out to make a deposit in the bank may never get past .the lures of the shop window. The definite purpose idea, therefore, took the bank to the saver, instead of vice versa. Humanity is always wanting something new; but it does 1 not always possess the readv cash with which to purchase it. Tire bank ay: * ‘Save up your money for what you want, and we will take care of it and pay you interest upon it. Put by so much a week towards the purchase of whatever you want, and we will come and collect it.” The scheme can only be worked iii business houses where there are many employees, but already the bank has opened more than 7000 of these accounts, and the number is steadily increasing. The system, is that those who save for a definite purpose their savings each week in an envelope, and deposit the envelope in a box at their place of business. The bank sends round and collects the money. The saving is purely optional, and actually has nothing to do with the firm, except that the consent of the -management is obtained to carry on the club. The weekly amounts are not deducted from the pay envelopes, hut are contributed by the savers themselves. To date the amount saved by 7000 depositors is about £30,000.

What does the average definite purpose depositor save up for? Most of them are putting by for their annual leave or for the Christmas holidays, but they are not all like that. The bank will enable them to save for anything, but it encourages accumulation for the more serious and profitable things in life. When its officers secure permission to address the employees of a firm, they recommend the scheme from the point of view of saving up to buy a home, or to provide the depositor with more education. The amounts saved each week for a definite purpose vary from Is to 30s, with an average of between 4s and ss. Bank officials are sometimes amazed at the character of the depositors. There are boys of 14 who are putting by 2s 6d and 5s a week towards the purchase of homes. A number of railway apprentices are sawing sufficient each week to enable them to buy a home when they reach the age of ’26. The movement ‘has extended to Sydney, but there is no indication that it has been as successful here as it is in Melbourne.