Daddy' Bank

Every other person I know is starting up these days. So I am delighted to announce the launch of my not-for-profit (mainly loss-making like most known start-ups 😉 ) start-up - Daddy's Bank.

Yesterday, I saw my 7yo daughter munching on a snack (bought from outside). "Where did you get it from?" I asked curiously. "I bought it from the shop below with the money I had" she said innocently. She used to have a locked piggy bank, but one day she managed to get all the money out and since then it was stored in a pouch with her. The fact that she had access to & spent money on her own at this age without our consent did not go down well with me. We had a discussion about it & in no time the tiny little eyes were moist. Clearly, I had not done a great job of explaining.

At first, I thought about buying another piggy bank, but then I thought it was the right time to introduce the concept of banking & accounting to her. I googled a ledger template & printed it. I explained the concept of deposits & withdrawals & how the elders keep track of money via a passbook/ledger. I asked her if she would like to start banking too, albeit within the house. "I will be your bank. You can keep your money safe with me & make withdrawals at will" I told her & she agreed. We agreed to use the attached ledger to make entries for every deposit (allowances, gifts & other income) & withdrawal (snacks/chocolates or gifts for friends).

However, client acquisition was just one bit. I needed to keep the business running with cash flows, so here is what we both agreed to:

1. Every Monday, Daddy will give an allowance of INR 10. However, kid must ask for it without fail. In order to remember, we set a recurring reminder in a calendar in her tab.

2. The allowance will be reduced by INR 1 if kid has been naughty in the prior week. Bonus of INR 1 for good behavior & timely homework completion.

3. All the big "covers" (money gifted by relatives in envelopes) that mom & dad usually kept will now be deposited in Daddy's bank. A ledger entry shall be made each time for the client to track wealth.

4. For all small (snack like) expenses that the client wants to make, 100% of funding shall be done via their own account. For bigger expenses, the bank will fund the amount with a copay (varying from 0.1% to 20% as deemed fit by the bank) deductible from the client's account. So for a new toy worth INR 1000, the client may have to shell out a copay of INR 1 to INR 200, based on the bank's discretion.

The deal was finally closed & funds were deposited in Daddy's bank. That's how Daddy's Bank captured 100% of the entire market share in no time! I seek your blessings to excel in my new start-up & hope to never make money from it.

Are you a parent of a little one? Have you opened your bank too? If not, as they say, it is never too late to start up. Introduce them to financial concepts, especially if it is a girl child.

Not that you ask, but no, I do not have any plans for an IPO, yet.