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The key findings of the
Outlook Money–C fore survey:
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Nearly two-thirds of
all parents actively involve their children in family budget
discussions.
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Over 60 per cent of
kids have a bank account by age 10.
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In Delhi, half the
number of children in their late teens (15-18 years) say they will
soon invest in stocks.
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Across all ages,
children spend–rather than save– any money that comes their way.
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Most children in the
15-18 age group see merit in acquiring a professional degree rather
than take up a job right after graduation.
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Overall, kids in Delhi
are by far the most involved in family money discussions and spending
decisions.
Parents
Some 63 per cent said they involve their kids in budget discussions; of
these, an overwhelming 90 per cent started involving them by their early
teens. Some 55 per cent said they give their child pocket money–of up to
Rs 500 per month, in most cases. (In Delhi andMumbai, many more parents
said they give pocket money; and many more give more thanRs 500.) Most
parents said they monitor what the children spend on.
A little less than half the
parents said their children had a bank account–in most cases by age 10.
Again, many more parents in Delhi (56 per cent) and Mumbai (53 per cent)
said their children have a bank account; in Delhi, 50 per cent of parents
said their children had an account by age 5! Typically, parents monitor
their children’s banking operations; again, parents in Delhi and Mumbai
are a trifle more liberal.
Age 5-10
years
Nearly all understood that while an ATM may dispense money, it’s their
parents who work to earn it. Most believe pocket money is for spending;
some do it instantly, some save it and delay gratification. Some 11 per
cent of kids said they would pitch in with their savings whenever a family
big-spend–such as a car–was planned. A third said they would use their
savings to buy their parents an anniversary gift.
Age
11-14 years
In their early teens, they discover ‘hanging out’. An overwhelming 80
per cent said they spend their pocket money on games, clothes, movies,
books and partying. In Delhi they spend rather more on games and
clothes–and less on books. Many more in Chennai said they would rather
save. Only 42 per cent have a bank account–and they operate it only
under parental monitoring–except in Delhi, where a third said they had
independent control over their account. There is awareness that a credit
card doesn’t mean easy money, but few children are certain of how a
credit card works.
Age
15-18 years
The ‘young adults’ are gearing up for college. Clothes and accessories
are the largest pocket money spend–more so in Delhi (60 per cent). Only
10 per cent said they had earned any money–mostly from household chores.
Many more said they got cash rewards for good grades. Only 7 per cent took
up summer jobs; a higher number in Mumbai (15 per cent) and Delhi (10 per
cent). An awareness of the risk-returns equation associated with the stock
market is manifest. A third said they would invest in stocks; in Delhi, 50
per cent were bullish on stocks. Some 80 per cent would seek a job rather
than start a business. Of these, 58 per cent prefer to get a professional
degree and not work right after graduation; the numbers for Chennai and
Mumbai are 80 per cent and 70 per cent respectively. In Delhi, however, 64
per cent said they would either take up a job or start a business soon
after graduation. Most expect their parents will pay for higher education;
about 22 per cent said they would part-pay. In Delhi, 45 per cent said
they would either repay their parents or part-fund their higher education.
Methodology
Market research agency C fore conducted the survey in Delhi, Mumbai,
Kolkata, Bangalore and Chennai between November 16 and 18. A questionnaire
was administered to 1,000 respondents in four sets–parents and children
of5-10, 11-14 and 15-18 years. A random sample of 50 respondents was
interviewed in each set in each city; all in the SEC A1 and A2 category,
which represents the highest socio-economic slab; 48 per cent of those
interviewed weregirls.
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