Visa survey: Hong Kong parents worry about how their children will manage their own finances – expecting to bankroll them after adulthood
• 95% of parents worry about their child’s ability to manage their own finances
• More than 80% of parents expect to have to finance their children when they start working
• Top items Hong Kong parents willing to pay for are postgraduate tuition and property
Parents are concerned about their children’s ability to manage their own finances and expect to have to help bankroll them for years even after they enter the workforce, according to Visa’s survey.
The survey commissioned by Visa1 found that 95 percent of respondents are worried about their child’s ability to manage their own finances when they enter the workforce in future. The biggest issues for parents are their child’s lack of interest (49 percent) in financial matters and their own lack of financial knowledge (40 percent). Half (50 percent) of the respondents believe that their children should formally learn about financial management during their teenage period (12-19 years old).
The survey, which questioned 541 parents of children under 23 years of age, also found that more than 80 percent2of parents expect to bankroll their children when they start working. Among the respondents, 42 percent said they expected to financially support their children for at least 5 years after they start working. The top items parents are willing to pay for include postgraduate studies (42 percent), a down payment for property (37 percent) and the purchase of a housing property (28 percent).
Maaike Steinebach, Visa General Manager of Hong Kong and Macau, said: “It is never easy to achieve financial security and it is only natural for parents to worry about what the future holds for their children. That is why it is important for children to learn about managing their finances as early as possible, and why at Visa we are committed to promoting financial literacy and supporting initiatives such as the Hong Kong Liberal Studies-Financial Literacy Championship. Imparting practical money skills to students is a shared responsibility involving many stakeholders from schools to parents, and government to businesses.”
For 20 years, Visa has been a private sector leader in developing innovative, free programs that help people effectively learn the fundamentals of personal finance, including budgeting, saving, responsible spending and the wise use of credit. Its flagship website Practical Money Skills has been localized in 30 countries and territories, including Hong Kong.
In Hong Kong, Visa has recently been awarded the Financial Education Champion 2019 by the Investor and Financial Education Council along with other private and public allies.
It is worth noting that privacy protection (18 percent) is the second most worrisome topic for parents when it comes to financial education.
“With more financial transactions happening online and personal data exchanged at great, global quantity, it is all the more important to learn how to protect our privacy. It is crucial to empower people with such knowledge in this digital age, particularly in the context of consumer rights,” said Ms. Steinebach.
Now in its fifth consecutive year, the Hong Kong Liberal Studies-Financial Literacy Championship 2019 is organized by iknow of the Hong Kong Economic Journal Company Limited and the Hong Kong Education City Limited, supported by the Education Bureau, the Hong Kong Monetary Authority, and St. James’ Settlement, and sponsored by Visa.
1 A survey conducted by YouGov in February 2019 commissioned by Visa. 541 parents of children under 23 years-old were interviewed on their views on children financial education.
2 For up to two years or more after their children start to work.
Visa Inc. (NYSE: V) is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of connected commerce on any device, and a driving force behind the dream of a cashless future for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit About Visa, https://visaapnews.asia/, and @VisaNews.