Impact of Proposed Expansion of POSB Smart Buddy Programme on Primary School Students

Dr Tan Wu Meng asked the Minister for Education regarding the Ministry’s proposed expansion of the POSB Smart Buddy programme for students across all Primary schools by 2025 (a) whether studies have been conducted on the short- and long-term impact of early exposure of children to e-payment transactions in children, (i) with existing experience with physical currency, such as coins and (ii) without prior experience of physical currency; and (b) if so, what are the results of these studies.

MOE has partnered DBS to set up e-payment infrastructure in all schools by 2025. This will provide the option of cashless transactions in our school canteens and bookshops. Those who prefer cashless payments can use their School Smart Card and EZ-Link cards or sign up for the POSB Smart Buddy Programme, which is optional. Those who prefer cash payments can continue to do so, as we will keep this option available.

MOE conducted a study with pilot Primary schools in 2018 on the POSB Smart Buddy Programme. The majority of schools provided positive feedback on how students have responded to using cashless payments. They found that students demonstrated the "ability to track spending" and that they had "learned to save". This indicates that students can develop good financial habits, whether using cash or cashless payment.

Whether payment is done by physical cash or digital money, it is important that young children learn about the value of money, spending wisely and managing their money prudently. Allowing our students an option of cashless payment in schools where it can be done in more controlled settings, would not only help to develop good financial habits but also better prepare them for a world where contactless transactions are becoming more prevalent. MOE will continue to monitor how students respond to cashless payment in schools and provide them with the necessary guidance to develop good financial literacy.