[Practical Finance] Affordable Financial Products to Watch This New Semester

With the new semester approaching, financial products for children are gaining popularity. This year, due to the low interest rate trend, banks have not offered the high-interest special savings and deposit promotions they usually launch at the beginning of the year, drawing attention instead to cards, fintech (finance + technology), and insurance. These sectors are competing to attract loyal customers by introducing new products with valuable benefits and events.

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Park Ji-eun, a 40-year-old office worker, recently issued a check card for her son who is entering middle school this year. Her son wanted to have his own card because carrying his mother's card, known as 'Eomka (Mom's card),' would make other kids tease him. Instead of the 'Eomka,' which was once a symbol of wealth, youth cards with stylish designs and benefits tailored for students have become the recent trend.

KB Kookmin Card's 'Ssoyoung Check Card' offers good discount benefits. If the monthly spending exceeds 50,000 KRW, users can receive up to 5,000 KRW in discounts. Discounts apply at places frequently used by teenagers such as study cafes, stationery stores, and convenience stores. Among youth credit cards, Samsung Card's 'ID Pocket Card' is popular. Linked to the parent's credit card, it offers up to 8% discounts at convenience stores, coffee shops, and more. The basic monthly spending limit is 100,000 KRW but can be adjusted up to 500,000 KRW if the parent wishes.

Among fintech options, Toss's 'Youth Card' is representative. It is a prepaid recharge card available for ages 7 to 18. When money or points are loaded into the prepaid account, the amount is deducted upon payment. KakaoBank offers the 'Mini Card,' an allowance card for ages 7 to 18. It supports deposits, withdrawals, online and offline payments, and T-money recharges. Users can hold up to 500,000 KRW and check their balance in real-time via the application (app).

Many parents are preparing to enroll their children in insurance for the new semester. As children spend more time outside the family environment at school, they face increased exposure to unexpected risks such as illness and injury.

Samsung Life Insurance was the first in the industry to introduce a school violence victim rider in 2020 through the 'Our Child Proper Growth Insurance.' If the insured suffers from school violence, 500,000 KRW is paid based on the results of the School Violence Countermeasure Deliberation Committee. This insurance covers fractures, casts, hospitalization, and also offers graduation commemorative money and university tuition riders to assist with future education expenses.

Hyundai Marine & Fire Insurance’s representative product is the children's insurance ‘Good & Good Children Comprehensive Q.’ It covers critical illnesses such as multiple pediatric cancers (leukemia, brain/central nervous system cancer, malignant lymphoma), eight major disabilities (visual, auditory, speech, physical, brain lesion, intellectual, autism, mental disorders), and organ transplant surgeries. It also covers everyday risks children may face during growth, such as school violence and vision correction.

KB Insurance offers the 'KB Precious Child Insurance,' which provides physical and psychological protection for children. It includes riders for precocious puberty diagnosis fees, attention deficit hyperactivity disorder (ADHD) diagnosis fees, and severe tic disorder diagnosis fees.

Participating in various events organized by financial companies is a good way to manage increased spending during the new semester. Shinhan Card is currently holding a prize draw event for users of the 'Edu Plan Plus' card. This card refunds up to 10% of payments made for academies, study materials, kindergartens, etc., based on the previous month's spending. If conditions such as the number of academy fee payments are met, users can receive refunds up to 100,000 KRW. Shinhan Card is also running a school banking automatic payment event. If new applications for school banking card payments are made by June and the first payment is made within two months from the application month, 5,000 KRW will be refunded per student.

KB Kookmin Card is conducting a cashback event through a lottery for customers who set up automatic payments for elementary, middle, and high school fees and daycare fees until April 30. Customers who apply for automatic school fee payments with KB Kookmin Card during this period will be entered into a draw where 1,021 winners will receive cashback. Until March 31, cashback benefits are also available for daycare families. Among customers who pay daycare fees with KB Kookmin Happiness Card or KB Kookmin Child Happiness Card, 1,000 winners will receive 10,000 KRW cashback. First-time daycare fee voucher payers among the winners will receive 30,000 KRW cashback.

NH Nonghyup Card is also running a new semester support event. Customers who register for automatic education fee payments with NH Nonghyup personal cards and make at least one payment will receive a 5,000 KRW mobile coupon for GS25 convenience stores. Additionally, among those who receive the coupon benefit, the first 100 customers will get cashback on their first payment amount. NH Nonghyup also offers interest-free installment plans for university tuition. Customers paying 50,000 KRW or more in university tuition with NH Nonghyup personal cards can enjoy 2 to 4 months of interest-free installments or partial interest-free installments for 5 to 10 months.

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