How parents really feel about banking products for their kids

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.