Kids Grade Parents a "B" as Financial Role Models

ING DIRECT survey finds that as kids head back to class, parents think about lessons in money management

TORONTO, Aug. 12, 2013 /CNW/ - As kids gear up to head back to class, it seems parents are the ones making the grade. A new survey by ING DIRECT revealed that nearly half of Canadian children (44%), ages 11 to 14, grade their parents a "B" when considering whether they are good financial role models. When asked to self-reflect, 47% of parents surveyed also graded themselves a "B".

The online study, conducted in July 2013, surveyed both parents and children 11-14 on money matters and education. Two-thirds (76%) of parents across the country use back-to-school shopping as a way to involve kids in financial conversations and decisions. Seventy-two per cent of the kids surveyed identified clothing and shoes as being the most expensive items on their back-to-school wish list.

More than half (56%) of parents surveyed set and kept to a budget for last year's back-to-school shopping, while over a third (35%) said they didn't create a budget at all. This year, parents polled plan to spend an average of $252 to prepare their kids for back-to-school - virtually the same amount that kids polled felt their parents should spend ($232).

"As a parent, I'm aware of the importance of a well-rounded education for children, which includes lessons about financial health," said Peter Aceto, CEO and president, ING DIRECT. "Teaching our children about money doesn't have to be a complicated. Using everyday situations, like shopping for back-to-school items or a trip to the grocery store, is an easy way to introduce kids to the concepts of budgeting, spending and saving."

Kids are eager to learn about money matters

The survey also found that children polled wished their parents would talk with them more often about how banks/credit cards work (38%), what things cost and why (36%), as well as how to save (27%) and manage (26%) money. Luckily, the vast majority of parents surveyed (95%) say they feel prepared to teach their children about financial basics.

"There is clearly a curiosity in the home about subjects surrounding money," said Aceto. "It's important for parents to start talking to their children about finances from a young age and continue those conversations into adulthood."

In order to become a financially successful adult, children surveyed believe it's important to save money (64%), have an education (55%), work hard (54%), and be equipped with financial knowledge (24%). When parents polled were asked what they felt would help their children become financially successful adults, education (65%), saving money (60%), working hard (47%), and acquiring financial knowledge (44%) topped the list.

Fifty-three per cent of Canadian parents surveyed say the best financial advice they can give their child is to live within their means. Setting savings goals (13%) and spending wisely (14%) were also suggested.

Additional Survey Highlights

• According to kids surveyed, their parents talk with them about the importance of saving and having good spending habits once a week (44%), once a month (30%) or every few months (18%).
• When asked to think about their own spending and saving habits, 55% of parents say they regularly set money aside in savings, while 54% of parents admit they have debt.
• Nearly half of parents (45%) say they create and maintain a budget while 11% say they live paycheque to paycheque.
• Less than half of Canadian parents (47%) say they maintain an emergency fund.

To help guide parents' conversations on essential money lessons, ING DIRECT has developed a website called LilSavers.ca. Lil Savers is an interactive site that takes kids through fun activities and games that teach them all about money - how to "grow it, save it, spend it, and share it". Lil' Savers Moneyland is full of great lessons for kids, as well as a very easy-to-follow parent interface to help create an experience for the whole family.

About ING DIRECT

ING Bank of Canada, operating under the trade name of ING DIRECT, is a wholly owned subsidiary of The Bank of Nova Scotia. ING DIRECT is Canada's leading direct bank with over 1.8 million Clients and close to $40 billion in total assets. ING DIRECT is a bright way forward in everyday banking for Canadians, offering value added, simple products such as high interest savings accounts, including TFSAs, GICs and RSPs with no fees or service charges, mutual funds, low rates on mortgages and a no-fee, daily chequing account that actually pays interest. ING DIRECT has been operating in Canada since 1997, and has paid near $6 billion in interest to Clients. ING DIRECT is open for banking 24 hours a day, 7 days a week, at ingdirect.ca, on mobile devices at m.ingdirect.ca or by calling 1-800 ING DIRECT (1-800-464-3473).

ING Bank of Canada and its subsidiaries have been acquired by The Bank of Nova Scotia and are no longer affiliated with ING Groep N.V. The trademarks ING, ING DIRECT, ING Lion, the ING Lion logo and any derivation, variation, translation or adaptation thereof are trademarks of ING Groep N.V. and are used under license.

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About the Survey

On July 19, 2013, an online survey was conducted among a sample of 1,007 Canadian adults who are Angus Reid Forum panel members and 1,007 Canadian youth between the ages of 11-14. Discrepancies in or between totals are due to rounding.

SOURCE: ING DIRECT

For more information or to arrange an interview, contact:

Jessica Bianchi
ING DIRECT
416-497-5157 ext 4453
[email protected]

Amanda Petriglia
ING DIRECT
647-259-5797
[email protected]