About 60 per cent of the parents prefer fixed deposit accounts to fund their children’s future requirements, according to an ING survey.
The survey noted that 60 per cent of respondents prefer to park their funds in fixed deposits (FDs) when it comes to allocating funds to their child’s future requirements against other asset classes, ING Vysya Bank said in a statement.
More than 1,000 parents participated in an online survey over a period of three months.
The survey highlighted the fact that over 70 per cent 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 per cent of parents opened a dedicated bank account for their children, up from 40 per cent last year, thereby helping them deposit money etc at a much younger age than public perception,” the survey said.
Another finding observed that parents believe that handing over the responsibility of depositing money in a savings account makes them more mature.
According to the survey, mothers edged out fathers as influencers when it came to money management by children. About 73 per cent of respondents thought kids asked mothers maximum questions about money.
‘Pocket money’
The survey also pointed out that the concept of “pocket money” was redefined as it was money that children gather from multiple sources, primarily parents.
Over 50 per cent of the parents prefer to give out cash to their children if they get the desired marks and not pocket money.
“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.
The survey showed that 60 per cent of them resided in metropolitan cities, while the remaining represented 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.
beena.parmar@thehindu.co.in