Pocket Money is Recession-proof!!!

In past one and a half year, most parents have witnessed the tyranny of economic recession. It has definitely affected their wealth. However, The pocket money of their children seem to be recession proof. According to surveys conducted by the major research houses, like Nielson Survey, the pocket money levels have remained inelastic during the recession period. The primary spending of the teens remain dining and shopping. And the latest entrant is the mobile bills. Even after spending hours together in schools, classes, sports park, these kids have something or the other to talk. A humorous message must be circulated to at least 20+ friends else you are labeled as "uncool" or unkewl as they say. The bill ranges from modest Rs.250 to Rs.2500 per month. And this is no exaggeration! Kids in south mumbai just seem to have much to talk about. Nowadays, Teens and kids have much say over their spending habits. Earlier the parents decided whether the kids persistent demand should be met or not? Lately, dual income parents have serious lack of time to pay any attention to their kids. All they do is deposit some of their income into their kids bank account and the kid rightfully withdraws the moolah whenever needed. In my yonder days, Dad would hand over Rs.100 in denominations of ten, and would say, 'This is your pocket money for current month spend wisely.' Now kids just SMS or mail their parents notifying that their bank account needs a "Cash Reload". Within minutes, thanks to the internet banking facility and online fund transfers, the transaction is met in minutes! It is observed that the kids emulate the spending habits of their parents from a very tender age. Kids from tight fisted family will develop a habit of saving more than spending. Kids, belonging to family who shop till they drop, end up dropping their bank balance to near zero! Some families who are financially literate teach their kids how to maintain statement of expense. These kids for sure will be the next Kishore Biyanis and JP Morgans of future!Parents spend most of their income on kids for their education. Apart from education, seventy percent parents spend on additional learning tools and tutorial classes for their children, over 80 percent spend on toys and entertainment for their children and over half spend on extra-curriculum activities such as sports and musical instruments learning etc. Despite a sticky economic environment, two thirds of the parents think their current spending on their children is just right and 83 percent do not have plans to cut back, it's music to the ears for children-oriented businesses. It is good that kids nowadays are taking the decisions to purchase the products they want by themselves. Ideally, this can help the kids a lot in planning their own financial future. Parents can involve these kids/teens in their decision involving financial acumen. Our next generation is going to be financially smart and excellent decision makers. Only a good parenting can harness the best talent from the young generation Jai Gurudev