The vast majority of American parents expect their children to do chores
for their pocket money, while more than half of parents in Cyprus teach
their kids about the stock market, reveals global market research company
Synovate.
These and other fascinating insights come from a survey of 1,596 parents
of 5 to 17 year olds in the United States, Canada, China, Cyprus, South
Africa and Slovakia, who were asked whether they give their children an
allowance and how they are teaching their offspring about financial
responsibilities.
Most parents surveyed believe it's important that children learn about
financial responsibility, with 78 percent teaching them how to save money
and 72 percent showing children how to compare prices to get the best deal.
And this financial education can be pretty sophisticated, with one-quarter
of parents showing their children how to use a checking account or credit
card, while 54 percent of Cypriot parents teach their kids about the stock
market!
Synovate's Research Manager for Cyprus, Georghia Paschalides,
says the Cyprus stock market bubble in 1999 affected
many of today's parents, who suffered losses in the eventual collapse a year
later. "These parents are not necessarily teaching their kids how to invest
in the stock market but, more likely, how to understand the risks involved."
Do you actively teach your child any of the following?
Forty-three percent of parents involve their children in saving for their education,
with Chinese and Cypriot children (60 and 55 percent respectively) topping that list.
On the other hand, 79 percent of South African children play no part in saving for
their education.
For some parents, it's never too early to begin teaching children about financial
responsibility: 23 percent of those surveyed do so as soon as their children start
asking their parents to buy things for them, while another 23 percent begin their
children's financial education between the ages of 5 and 8. In China, however, half
of parents wait until their children are 13 or older before teaching them about
finances.
When do you think is the right time to start teaching children about financial
responsibility?
Claire Braverman, Senior Vice President at Synovate's Financial Services
Practice in the United States, says when it comes to money, cultures across
the world respond to their children in similar ways. "As children watch their
parents spend money, they become curious about it. And as they start to learn
basic arithmetic, they become even more curious. So it is no surprise that by the age
of 12, more than half of the kids in these countries are learning about money.
They often start by wanting to be the one to pay the clerk in the store, or
count the change, they grow into helping calculate the tip at a restaurant,
and ultimately learn how to make purchase decisions on their own."
Noting that many parents around the globe are teaching their children how
to save and invest money, Braverman reminds us that, "Children's brains are
like sponges – it's easier to teach them when they are young rather than
leaving them to figure it out as adults."
So how does all this affect children's pocket money? Parents across those
countries are almost evenly divided on whether they give their children a
regular allowance. South African and Canadian children are most likely to
receive a set amount, according to 34 and 32 percent of parents respectively.
By contrast, 26 percent of Chinese and South African parents give their children
whatever amount they can afford as pocket money. However, 38 percent of American
parents prefer to just buy their children what they need, while 35 percent of Cypriot
children simply get money when they want it.
Synovate's Paschalides attributes this
to the 1974 war, which turned many Cypriots into refugees. "A number of parents
surveyed would have lost their homes and possessions as children, and most grew
up in a difficult financial climate. But Cyprus now has a strong economy and a
high standard of living, so they can afford – and wish – to 'spoil'
their children by giving them money whenever they ask for it because they did
not have an opportunity to be 'spoiled' themselves."
Does your child receive pocket money?
Synovate learned that American kids generally must earn their allowance,
with 96 percent having to do household chores in exchange for their pocket
money – as do 86 percent of Canadian children who receive an allowance.
At the other end of the scale, a large majority of children in Cyprus
(89 percent), China (77 percent) and Slovakia (75 percent) don’t have to
lift a finger for their pocket money.
Darryl Andrew, Synovate's Managing Director for China, is not surprised
by this finding. "Many of these kids simply do not have a lot of time to
do household chores, because the amount of homework they receive each
day is staggering compared to most Western countries. On top of that,
they are expected to participate in several extra-curricular activities,
such as music or sports lessons, as well as private tutoring for English
and maths.
"Many Chinese parents believe it's much better to give their
children a head start for the future through these activities instead of
assigning them household chores. These kids have certainly earned their
pocket money, but just in a different manner to the West."
For some Cypriot children, however, there is a catch: 19 percent of their
parents – along with 16 percent of South African parents –
usually demand a say in how the kids spend their money. By contrast, 61
percent of Slovakian parents are happy to let their children spend their
money any way they like.
