Over 50% of respondents who participated in an annual ING survey, said they don’t believe in giving their children pocket money, but prefer to dole out cash if they meet desired marks in school exams. The finding has redefined the concept of “pocket money” children gather from multiple sources, primarily parents.
Over 1,000 parents participated in an online survey conducted by ING Vysya Bank over a period of 3 months, with 60% of them residing in metropolitan cities while remaining representing the rest of the country. The Annual ING ZING survey is meant to capture the changing behavioural trends among parents and kids on money management and how they adapt to each other’s needs and requirements.
“Indian parents’ outlook towards giving money to their kids is unlike parents in the west, who treat pocket money as a reward for household chores. Indian parents, instead use it as a way to reward better grades and higher degree of responsibility,” said Brett Morgan, Country Head – Branch Banking & Private Clients, ING Vysya Bank.
Also mothers edged out fathers as influencers when it came to money management by children; 72.7% of respondents thought kids asked mothers maximum questions about money. The survey also noted that 60% of respondents prefer to park their funds in Fixed Deposits (FDs) when it comes to allocating funds to their child’s future requirements as against other asset classes.
The survey also highlighted the fact that over 70% parents believe that saving money is a necessary skill to be taught to their children. In order to ensure that the kids have a hands-on approach for money management skills, around 52% of parents opened a dedicated bank account for their children up from 40% last year, thereby helping them deposit money etc at a much younger age than public perception. Another finding observed that parents believe that handing over the responsibility of depositing money in a savings account makes them more mature.