How parents really feel about banking products for their kids

19/04/2022 Interview
profile picture of Anna Perera Shaw Anna Perera Shaw RFi Group Director, Consumer Credit, Deposits and Payments

Anna Perera Shaw, Director, Consumer Credit, Deposits and Payments at RFI Global, discusses the illuminating results from their latest global survey on youth banking in Australia. 

Could you tell me more about the survey you did on youth banking?

We polled 1,000 young people aged 16 to 21 and 540 parents with children aged under 18 online in our last edition of the Youth Banking Survey, in March 2021. This is part of our ongoing research to serve financial institutions’ strategic and tactical decision making. Youth banking is a growing focus for them, and hence also for us.

Traditionally, children manage their money in cash. Is there an evolution towards digital? What are the reasons for this?

RFI Global research showed that when parents give pocket money to their children, 2 in 5 (44%) give them cash. 1 in 5 parents (22%) transfer money to their child’s bank account. Cash is still the primary way children receive money regardless of their age. The decision to pay pocket money in cash versus transfer it into a kid’s bank account is likely related to parents’ overall payment preferences as we continue to see a steady decline in cash payments. There may also be other factors, such as how much freedom the child is given in how they manage and spend their money.

At what age do parents consider that their children can have and manage a bank account? 

36% feel the start of primary school is the right time to open a transaction account and 30% feel high school is the appropriate time.

When it comes to having independent access to an account with a linked card, our data has the average ideal age at 15. However, 1 in 5 parents (18%) indicate that 10 to 12 is the right age.

This content is reserved for our members

Join Qorus to keep reading

Related news & insights

Open Finance
31/03/2023 Interview

NewTech Friday: Lyyna Insurance & Financial Services – An innovative B2B2C sales platform for single item insurance

Swiss startup Lyyna Insurance & Financial Services is one of the selected startups of the fourth edition of the LHOFT...

Digital Reinvention
30/03/2023 News

U.S. Bank releases 2023 Payments Transformation Report

Survey of finance leaders finds adoption of payments technology is driving consumer loyalty and business profitability.

30/03/2023 News

Bidmii & Humm launch embedded finance product, Get it Done, Pay Later

Bidmii, a Toronto-based tech start-up revolutionising the home improvement industry, announced the launch of its new embedded financial product, Get...

Digital Reinvention
29/03/2023 Article

Banks finally see innovation as a driver for future revenue

Sarah Kocianski is a fintech and insurtech strategist as well as the leader of the Qorus Open Finance community. She...

Open Finance
29/03/2023 News

Viva Wallet launches pan-European payment solution for e-commerce and shop-in-shop marketplaces

Viva Wallet's end-to-end Marketplace Solution supports payments in 24 European markets and provides all the tools to digitally onboard sellers,...

Digital Reinvention
29/03/2023 News

TD launches new accessibility tool to drive inclusive online experiences for users

Created by TD Lab, the new tool, TD Adapted Accessibility allows users to individualize their online experience to address accessibility...

28/03/2023 News

Agency Revolution leverages mobile AI engine and ChatGPT to launch social media app for the insurance industry

Mobile social selling solution enables insurance agents to automate the creation of personalized social posts with one click.

28/03/2023 News

Apple introduces Apple Pay Later to allow consumers to pay for purchases over time

Apple Pay users can split purchases into four payments with zero interest and no fees.