The trends were mapped among the set of one lakh parents in India with children under 18, which intended to highlight the importance of financial literacy among kids
· It shows that 50% of kids from cities, including Delhi, Mumbai, Bangalore, Hyderabad, Chennai, Kolkata, Ahmedabad, Pune, Chandigarh, and Lucknow, rake in a higher monthly allowance from their parents
· The kids are making majority of the transactions on platforms such as Zomato, Swiggy, Flipkart, Paytm, PhonePe, Zepto, and Amazon
· Parents are increasingly outsourcing payment of electricity/ water bills and grocery ordering to the children and rewarding them with a small bonus for completing the tasks
May 6, 2022: This International Mother’s Day, Junio, a fintech startup that allows children to receive digital pocket money, has analysed the trends over one lakh parents that showed that when mothers paid pocket money, the amount paid was more than what the fathers paid to their kids. Junio’s study suggested that kids receive an average of over ₹1500 from mothers while dads hand out somewhere around ₹1100. It also cited that mother’s play a vital role in teaching money management lessons to kids and establishing a firm financial foundation for them.
The data also showed that 50% of kids receiving pocket money came from Delhi, Mumbai, Bangalore, Hyderabad, Chennai, Kolkata, Ahmedabad, Pune, Chandigarh, and Lucknow, and their average monthly allowance was higher than other children in other cities.
Further the study revealed that mothers are giving their kids first-hand experience of different money management skills like monthly budgeting, controlling expenses, saving, and keeping track of all of their transactions. It suggested that children majorly spend their pocket money on utility payments such as mobile recharge, fuel bills, cab rides, food bills, etc. Tracking the cash flow and the monthly allowance, the other significant spending was seen on platforms like Zomato, Swiggy, Zepto, Paytm, PhonePe, Blinkit, Flipkart and Amazon.
Speaking about the latest study, Ankit Gera, Co-Founder of Junio, said, “Mothers are taking a lead role in teaching kids financial discipline. Raising financially literate kids and giving them the virtues of healthy spending and saving habits is one of the best gifts parents can give to their children. Saving for a rainy day is an essential part of parenting, and parents can empower the next generation by teaching them the value of money at an early age. Today’s kids are quick learners and tech-savvy, so it’s easy for parents to teach them financial discipline, budgeting, and saving habits, and Junio has always been committed to making the journey simpler and more exciting for both kids and the parents.”
The age-old concept of pocket money has evolved, and digital pocket money is a revolution. Seeing a significant increase in online purchases, the app is a great tool that helps parents in teaching budgeting, controlling unnecessary expenses, and savings for emergencies and annual financial goals. Trusted by 5 lakh + users, the digital pocket money app Junio is helping parents to track their kid’s expenses and teach the concepts of financial management to their kids while giving them exposure to digital payments. Parents need to make a conscious and consistent effort to discuss finances, model good financial decision-making and provide opportunities for kids to practice earning, budgeting, saving, and spending.