Over 50 per cent of respondents participating in an annual ING survey said they do not believe in giving their children pocket money and preferred to dole out cash if they meet desired marks in school examinations.
About 60 per cent of the over 1,000 parents participating in the online survey over a period of 3 months, reside in metropolitan cities, while the remaining represent the rest of the country.
"Indian parents' outlook towards giving money to their kids is unlike parents in the West, who treat pocket money as a reward for household chores. Indian parents, instead use it as a way to reward better grades and higher degree of responsibility," said Brett Morgan, Country Head - Branch Banking & Private Clients, ING Vysya Bank.
The survey also found mothers edged out fathers as influencers when it came to money management by children, with 72.7 per cent of the respondents saying kids asked mothers the maximum number of questions about money.
The survey also noted that 60 per cent of respondents prefer to park their funds in Fixed Deposits (FDs) when it comes to allocating funds to their child's future requirements as against other asset classes.
The survey highlighted the fact that over 70 per cent parents believe that saving money is a necessary skill to be taught to their children.
In order to ensure that the kids have a hands-on approach for money management skills, around 52 per cent of parents opened a dedicated bank account for their children up from 40 per cent last year, thereby helping them deposit money at a much younger age than public perception.
Another finding observed that parents believe that handing over the responsibility of depositing money in a savings account makes them more mature.
