The  ING ZING survey of Money and Your Child captures the changing behavioural trends among parents and kids on money management and how they adapt to each other’s needs and requirements. The survey is now in 4th year and this year survey was done through a nationwide online poll in the month of October 2014, and had over 4,000 respondents. This year over 65% of respondents represented metropolitan cities while the remaining from rest of the country, covering an age group of 25-45 years. Details about the ING ZING Money and your child Survey can be found at ING VYASA BANK webpage  on ING ZING Survey. The findings of the  ING ZING surveys are given below.

Are Kids Mimicking Parents?

82% of parents, who participated in the annual ING Zing 2014 survey said they believe that their children follow their money habits. Setting a good financial example for their children is an important goal – understanding the value of money and budgeting are important money lessons parents want to impart to kids. However, as the parents’ income level rises, they see their child mimicking their spending habits rather than their saving habits.Parents feel they are savers rather than spenders.

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.

Pocket Money

2/3 ^rds of parents are in favour of giving pocket money to the child above the age of 10. So, how much is right? On an average, children below 10 years get either no allowance or less than 500 per month, those between 15-18 years get below Rs 1000 per month.

In 2013 over 50% of parents were not in favour of giving out pocket money, but this year we see that two-thirds of parents are in favour of giving pocket money to the child above the age of 10. In 2013 it was found that 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

How much pocket money to give to children?

What should kids learn about money and Right Age to Open a Bank Account for Kids

In ING Survey 2013 it was found that 70% parents believe that saving money is a necessary skill to be taught to their children Majority of the parents feel that today’s children need lessons on how to handle money and they should take onus for imparting lessons.. 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.

What should Kids learn about money?

In ING ZING Survey of 2014 it was found that RBI has allowed for a child above 10 years of age to operate a bank account independently, 10% parents agreed with this. However, 50% parents believed that 15 years or above was the right age for their child to operate a bank account independently. Interestingly, parents believe that girls are capable of independently operating a bank account at a younger age. Our article Today’s Children, Bank Account and RBI Governor talks about Why RBI feels that children should be able to handle their own account? How much does a 10 year old understand about the economy and what did she do about it? What do today’s girls of 16-17 age think about money, what they look from husband and future.

Online Shopping

As e-commerce growth in India gathers rapid pace, the survey also asked parents on their perceptions about children and online shopping. While 84% of parents have shopped online themselves, when it comes to their children a majority of them felt they were worried, for different reasons. And the most prominent of them being “worried that the child be tempted to buy items that are not necessary”. They also strongly felt that children might fall prey to online scamsters. When asked if they allowed their children to shop online, 49% parents said they will not encourage their children to shop online. About one-third of the parents assist their children in buying a product after being identified or found by the child online.

How do parents save for their Children education

Children’s education was the most significant reason for parents to save.Parents with younger kids prefer to open a child’s savings bank account over other investment options and investing in fixed deposits is second most preferred choice. Among parents with older children Insurance and FDs came out as the most popular methods of investments. For younger kids, 58% parents save below 10%; for older kids, 75% save between 10 to 20%

How do parents save for their Children education

Related articles

• ING Survey Money and child surveys and more infographics for kids are available at our pinterest Kids and Money board.
•  Our webpage dedicated to teach kids about Money is Bemoneyaware : Kids learn Money
• Bemoneyaware’s Ebook on Banking,Cheques and Credit Card for Children on Amazon Kindle
• What are you teaching your kids about money?
• Books on Money for Children
• Is It a Need or a Want? : Teaching kids about what is want or need.

Do you pay pocket money to your kids? What money lessons would you want your kid to have? How do you teach your children about money? Or do you think life will  teach kids about money?