Kids need more lessons on money management: Survey

Study reveals parents can play critical role in helping children know how to manage money well

Majority of parents feel that their children need more lessons on the importance of savings and money management, says a survey conducted by ING Vysya Bank.

Around 96% of the parents, who have participated in the online survey, are of the view that children need more lessons on how they should handle money and parents can play a critical role in this regard.

"With savings rate dipping to low levels, (30.8% last fiscal and set to dip further this fiscal) the need of the day is to develop good savings habits in children.

"Majority of the parents are aware that they are responsible for teaching and exposing their children to savings options and money management at a young age," Country Head for branch banking, marketing & private clients at ING Vysya Bank Brett Morgan said.

Interestingly, the survey has found that while 40% of the parents are of the opinion that one should start teaching children about money management when they are in the 5-8 years bracket, 17% feel that it should start below 5 years.

But around 24% of the parents are of the view that the children in the 8-11 age bracket should be taught about money management.

Referring to the benefits of opening of a kids saving account, the survey has found out that 43.5% of the parents feel it helps in making the future of their kids secure, while 47.5% are of the opinion that it makes the kids financially smarter.

The online survey was conducted recently in the major metros involving around 450 parents.