Financial Literacy among 8-9 year-old children 3 Financial Literacy among parents of 8-9 year-olds Purpose of the study Children as consumers How much does the mobile phone cost per

- based on a market research survey among parents in

Denmark

Financial Literacy among 8-9 year-old children

List of contents

1.Purpose of the study Page 3

2.Methodology Page 5

3.Results

1. Financial awareness and responsibility Page 14

2. Aspects of pocket money Page 25

3. Interest in product concepts/Apps Page 30

4. Children as consumers Page 36

5. Children's use of electronic entertainment Page 44

14/11/2013

Financial Literacy among parents of 8-9 year-olds Page 2

Purpose of the study

Danske Bank wants to investigate how parents educate their children in “financial

literacy”. The following topics are covered:

Financial awareness and responsibility

When did they last discuss money and spending with their child

Their child’s knowledge and understanding of costs versus income

Do parents think that their child would benefit from learning more about money and

spending

Where would you prefer to find the information and material about private finance

To what extent are schools, parents, the government, the financial sector and

private organizations responsible for children’s understanding of money?

Do parents think it is appropriate for banks and/or schools to take some

responsibility for children achieving a healthy relationship to money and personal

finance

Aspects of pocket money

Does the child have any chores that he/she has to carry out to get pocket money

Does the child save some of his/her pocket money

Which things does the child have - Mobile phone/smartphone, MP3 player, TV etc.

14/11/2013


Purpose of the study

Children as consumers

How much does the mobile phone cost per month

Does the child have influence on the parents purchases

Children's use of electronic entertainment

How much time does the child spend on SMS, playing on the computer, TV and

Game console

Parents’ interest in different product concepts/Apps

Debit card with balance view, Teaching App for the child, Virtual piggy bank and App

for savings for the child

The study covers 4 countries within Danske Bank’s geographic focus area.

14/11/2013


Methodology

Interview period: Data has been collected in the period from 20.11.2012 until 11.12.2012.

Target group: Parents with children from the age of 8 to 9 years

Countries Sample Size (Not weighted) Sample Size (Weighted)

Denmark 305 300

Sweden 391 300

Norway 317 300

Finland 306 300

Data Collection

Data has been collected via the Internet in YouGov’s own Internet-based consumer panels in the four Nordic countries. YouGov has hosted and coordinated the data collection in all four countries.

Data Weighting

Data is weighted on the parents’ gender (50/50), on the children's age (according to the official national statistics), on regions (according to the official national statistics) and on quotas such that each of the four countries counts for one fourth of the aggregated data.

The total base is weighted on the countries’ population size.

Reporting

This report is based on the Danish results.

14/11/2013


Statistical Significance Levels

Page 6

14/11/2013

Financial Literacy among parents of 8-9 year-olds

8-9 years old

Country Sample: 300 Universe

Weight in

total base

Denmark +/- 5.7% 134,926 0.97

Norway +/- 5.7% 118,308 0.85

Sweden +/- 5.7% 187,112 1.35

Finland +/- 5.7% 114,821 0.82

Total +/- 2.3% 555,167

How to read the report

The survey is a repeat of the Financial Literacy survey conducted in 2009.

Most of the areas covered in the 2009 survey are also covered in 2012 and some areas

are new in 2012.

All repeated areas will be compared with regards to development from 2009 to 2012.

• In this respect, please note that Ireland and Northern Ireland are not included in the 2012

survey. The comparison from 2009 to 2012 will hence only concern the four repeated

countries – Denmark, Finland, Sweden and Norway.

Any significant changes from 2009 to 2012 or differences between countries in the data

are based on a 95%-confidence interval.

This report is based on the Danish results.

14/11/2013


Results

Financial awareness and responsibility

The majority of parents (58%) have discussed money and spending with their child within the last week. This

share is slightly lower than in 2009. However, this change is not significant. Furthermore, there are no

significant differences between the two age groups.

85% of the parents have discussed aspects of money with their children within the last month

14/11/2013

Financial Literacy among parents of 8-

9 year-olds Page 10

62% 58%

29% 27%

6% 6% 1%

4% 1% 1% 1% 1% 1% 2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Denmark 2009 (n=300) Denmark 2012 (n=300)

When did you last discuss money and spending with your child (e.g. about pocket money or about something he/she wants)?

Within the last week

Within the last month

Within the last 2-3 months



More than 7 months ago

Have never discussed money and spending with my child

Don't know

88% of the parents still believe the children will benefit from learning about the necessity of maintaining balance between income and expenditure. This is slightly less compared to 2009. However, the overall attitude to this has changed significantly. Even though parents to a high degree still think it would be beneficial for their children to learn about the necessity of maintaining balance between income and expenditure, they seem to be more reluctant. In 2012, the share of parents who respond “Yes, absolutely” has decreased significantly. Furthermore, the share of parents who respond “Yes, partly” has increased significantly since 2009. There are no significant differences in attitude among parents of the two age groups.

88% of the parents think it would be beneficial for their child to learn about the necessity of maintaining balance between income and expenditure

14/11/2013


9 year-olds Page 11

67%

49%

25%

39%

6%

10%

2%

2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Denmark 2009 (n=300)


Do you think that it would do your child good to learn more about the necessity of maintaining a balance between income and expenditure - that you cannot spend more

than you have earned and that there are consequences if you spend more?

Yes, absolutely Yes, partly No Don't know

85% of the parents believe the children will benefit from learning about the fact that their family’s funds are limited. This is a significant decrease from the 92% in 2009. Since 2009 parents have become more hesitant in deciding whether it is beneficial for their child to learn about the fact that their family’s funds are limited. Significantly fewer parents respond “Yes, absolutely” compared to 2009. Furthermore, significantly more parents respond “Yes, partly” and the share of parents who think their child would not benefit from this learning has also increased significantly since 2009. Looking at the differences in attitude among parents of the two age groups the overall change in attitude applies to both groups, however, the increase of parents of 9 year olds who respond “Yes, partly” is significant.

85% of the parents think it would be beneficial for their child to learn about the fact that their family's funds are limited

14/11/2013


9 year-olds Page 12

63%

47%

29%

38%

7%

14%

1%

2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%



Do you think that it would do your child good to learn more about the fact that your family's funds are limited - and that you cannot always do or get the things you want?


The majority of parents (84%) do not find it difficult to talk to their child about personal finances. There are no

significant differences between the two age groups.

84% do not find it difficult to talk to their child about personal finances 14/11/2013


9 year-olds Page 13

14% 84% 2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


Do you find it difficult to talk to your child about the balance between income and expenditure and other topics related to personal finance?


The share of parents who find it helpful to have access to information about personal finances when talking to

their kids about this aspect has increased since 2009. However, the increase is not significant. Even though

parents to a high degree still think it would be helpful to talk to their child about personal finance, they seem

to be more reluctant compared to 2009. The share of parents who respond “Yes, partly” has increased

significantly since 2009. There are no significant differences in attitude among parents of the two age groups.

49% of the parents think it would be helpful if they had access to information about personal finance when they talk with their child about this

14/11/2013


9 year-olds Page 14

13%

9%

32%

40%

39%

32%

16%

19%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%



If you had access to information and material about the balance between income and expenditure and other topics about personal finance, do you think they would be a help

in talking to your child about these things?


70% of the parents think it is natural to find material about personal finances on the Internet. The share has decreased slightly from 2009 to 2012. It is important to note that ”on our bank’s website” has been included in 2012 which may have influenced the decrease in the “Internet” share. The share of parents who respond “in our bank” has decreased significantly since 2009. This may also be influenced by the inclusion of “on our bank’s website”. There are no significant differences in attitude among parents of the two age groups in regards to how they prefer to find information about personal finance.

Most parents (70%) think it is natural to find material about personal finance on the Internet

14/11/2013


9 year-olds Page 15

72% 70%

35% 36%

20%

29%

22%

33% 29%

6% 6% 9% 11%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


How would you prefer to find information and material about the balance between income and expenditure and other topics about personal finance?

Base: Information and material would help to talk to child about personal finances

On the Internet On our bank's website In our bank At the library Government websites Other sources Don't know

33% of the parents would buy a teaching App for smartphone/tablet for 1 euro. 48% of the parents of 8 year

olds respond “no” and 36% of the parents of 9 year olds respond “do not know” (both results significant).

This indicates that the younger the child, the less you are willing to buy the App and the older the child the

more hesitant you are about whether you would buy the App.

33% of the parents would buy a teaching App for 1 euro 14/11/2013


9 year-olds Page 16

33%

40%

27%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Would you buy a smartphone/tablet App for 1 euro if the purpose of the App was to teach your child about money, interest, loans and savings?

Base: Households with smartphone and/or a tablet

Yes No Don't know

Among the six groups of influencers, parents are most responsible for their children achieving a healthy

relationship to money and personal finance. Even though the school is still the second most important

influent, the responsibility of the banks (topbox: 19%) has increased significantly since 2009 and the

responsibility of the schools (22%) has decreased significantly.

Parents strongly feel that they are responsible for their children achieving a healthy relationship to personal finance

14/11/2013


9 year-olds Page 17

84%

85%

5%

3%

3%

1%

3%

4%

1%

1%

1%

12%

12%

29%

19%

9%

9%

5%

15%

2%

3%

2%

3%

2%

39%

56%

28%

40%

33%

35%

10%

14%

15%

1%

20%

16%

36%

32%

34%

27%

31%

32%

20%

5%

4%

20%

16%

22%

18%

48%

42%

35%

1%

1%

2%

1%

4%

2%

3%

1%

8%

7%

27%

Avg. (1-5)

4.81

4.83

3.10

3.01

2.36

2.47

2.30

2.60

1.67

1.81

1.81

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%












To what extent do you believe that the following are responsible for children achieving a healthy relationship to money and personal finance?

To a very large extent (5) To a large extent (4) To some extent (3) To a minor extent (2) Not at all (1) Don't know

Parents

School

Society/the

government

Banks

Private

organisations

Other* *Added in 2012

Aspects of pocket money

19%

17%

27%

18%

13%

11%

5%

3%

4%

3%

1%

2%

30%

45%

1%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%



How much money does your child get in pocket money on average per month?

Up to 7 euro

7-12.99 euro

13-19.99 euro

20-26.99 euro

27-39.99 euro

More than 40 euro

My child does not receive pocket money

Don't know

Avg.

amount

12.71 €

12.92 €

The share of 8 and 9 year old children receiving pocket money has decreased significantly since 2009. Where 69% of the 8 and 9 year old children received pocket money in 2009, only 55% receive pocket money in 2012 according to their parents. It is also interesting to note that the only amount that has decreased significantly since 2009 is 50-99 DKK. The average amount has only decreased slightly. The only significant difference between the amount an 8 year old and a 9 year old receive – is that a significantly larger share of the 8 year olds receive up to 50 DKK (23% vs. 11%).

55% receive pocket money. On average the amount is 13 € per month

14/11/2013


9 year-olds Page 19

The share of 8 and 9 year old children receiving pocket money has decreased significantly since 2009. Where 69% of the 8 and 9 year old children received pocket money in 2009, only 55% receive pocket money in 2012 according to their parents. It is also interesting to note that the only amount that has decreased significantly since 2009 is 50-99 DKK. The average amount has only decreased slightly. The only significant difference between the amount an 8 year old and a 9 year old receive – is that a significantly larger share of the 8 year olds receive up to 50 DKK (23% vs. 11%).

55% receive pocket money. On average the amount is 94.41 DKK per month 14/11/2013


9 year-olds Page 20

19%

17%

27%

18%

13%

11%

5%

3%

4%

3%

1%

2%

30%

45%

1%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%



How much money does your child get in pocket money on average per month?

Up to 50 DKK.

50-99 DKK.

100-149 DKK.

150-199 DKK.

200-300 DKK.

More than 300 DKK.

My child does not receive pocket money

Don't know

Avg.

amount

92.84 DKK

94.41 DKK

83% of the children, who receive pocket money have chores to do in order to get the money. This is a slight increase compared to the 2009 result. The most common chore is tidying their own room; the next most common is general housework - both of which have increased significantly since 2009. The significant increase in housework is primarily caused by a significant increase in the share of 9 year olds having to do general housework. Regarding the increase in tidying own room there are no significant differences between the two age groups.

83% of the children, who receive pocket money have chores to do in order to get the money

14/11/2013


9 year-olds Page 21

55%

71%

56%

67%

31% 35%

19% 18%

3% 1%

13%

7%

20% 17%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Does your child have any chores that he/she has to carry out to get pocket money? Base: Receives pocket money

Yes, tidying own room

Yes, housework

Yes, doing homework

Yes, looking after pets

Yes, gardening

Yes, other

No

Please note that a new alternative has been included in 2012 – ”Yes, in a piggy bank and in the bank”. This

explains the significant decreases in the share of parents answering ”Yes, in a piggy bank” and ”Yes, in the

bank”.

The only significant difference between the 8 and 9 year olds is that a significantly larger share of 9 year olds

save some of their money in both a piggy bank and in the bank (55% vs. 38%).

Many of the children (85%) save their pocket money 14/11/2013


9 year-olds Page 22

63%

31%

47% 49%

6%

12%

1%

14% 14%

1% 0% 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Does your child save some of his/her pocket money? Base: Children with chores

Yes, in a piggy bank

Yes, in a piggy bank and in the bank

Yes, in the bank

Yes, through parents/handled by parents (keep the money)

No, spends it on an ongoing basis

Don't know

Interest in product concepts/Apps

38% of the parents would be interested in transferring money to their child’s savings using a

smartphone/tablet App. There are no significant differences in the attitude among parents of the two age

groups with regards to interest in transferring money/more money to their child’s savings using a

smartphone/tablet App.

38% would transfer money using a savings App 14/11/2013


9 year-olds Page 24

38%

47%

15%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Would you (and your child) transfer money/more money to your child's savings if you only had to click on a smartphone/tablet App to transfer eg. € 2.5?

Base: Children who save and households with smartphone and/or a tablet

Yes

No

Don't know

44% of the parents think they and their child would be helped to set targets for their child’s savings with a

virtual piggy bank. Parents of 9 year olds state to a significantly higher degree (42%) that they do not think a

virtual piggy bank would help them and their child set targets for the child’s savings.

44% think a virtual piggy bank would help them in setting targets for their child’s savings

14/11/2013


9 year-olds Page 25

44%

31%

25%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Would a virtual piggy bank help you and your child to set targets for your child's savings Base: Children who save

Yes

No

Don't know

Slightly less than one-third of the parents would allow their child to have a debit card if the card had a little

chip displaying the account’s balance. There are no significant differences in the attitude among parents of

the two age groups when it comes to allowing their child to have a debit card with a chip displaying the

account’s balance.

30% would allow their child to have a debit card with a chip displaying the account’s balance

14/11/2013


9 year-olds Page 26

30%

44%

26%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Would you allow your child to have a debit card if the card had a little chip displaying the account's balance?

Yes

No

Don't know

A child-friendly version of the overview of expenses and budget is the function/option for children most parents of 8 and

9 years assess the need for. There are no significant differences in the attitude to the listed functions/options among

parents to children of different ages apart from the “none of these” and “specific Internet site with children’s accounts

via parents’ eBank”. Parents to 8 year olds assess the need for a “specific Internet site with children’s accounts via

parents’ eBank” to a significant higher degree (36%) compared to parents of 9 year olds (25%). Parents of 9 year olds

respond “none of these” in a significant higher degree (30%) than parents of 8 year olds (14%).

A child-friendly version of the overview of expenses and budget is the most needed initiative

14/11/2013


9 year-olds Page 27

40%

47%

28%

12%

31%

14%

22%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Which of the following functions/options for children and young people do you think there is a need for?

Websites with content targeted at young customers

A child-friendly version of the overview of expenses and budget

A financing school/money school for children and young people

Video communication and guidelines

Specific Internet site with children's accounts via parents' eBank

Mobile payments for young people over 15 years of age (e.g. train tickets, magazines, etc.)

None of these

59% of the parents of 8 and 9 year olds believe that 15 years+ is a relevant age to obtain access to

eBank/Mobile/Tablet bank. There are no significant differences in the attitude among parents of the two age

groups in relation to the assessment of the appropriate age their child should have to access to eBank, Mobile

Bank and/or Tablet bank.

Most parents believe that 15 years+ is a relevant age to obtain access to eBank/Mobile/Tablet bank

14/11/2013


9 year-olds Page 28

4% 1% 9% 12% 14% 33% 15% 1% 10%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


At what age do you think it makes sense to allow your child to have access to eBank, Mobile bank and/or Tablet bank?

Under 11 years of age

11 years of age

12 years of age

13 years of age

14 years of age

15 years of age

16 years of age

17 years of age

18 years of age or older

Children as consumers

81% of the parents of 8 and 9 year olds believe that their child understands the concept that if you spend

money on one thing, it may mean that there is something else you cannot buy. There are no significant

differences in the attitude of the parents of the two age groups in relation to their views on their children's

understanding of the concept.

81% believe that their child understands that if you spend money on one thing it may mean that there is something else that you cannot have

14/11/2013


9 year-olds Page 30

81%

14%

5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Does your child understand the concept that if you spend money on one thing, it may mean that there is something else that you cannot have?

Yes

No

Don't know

In general, children still have many material comforts. Overall, there have been some changes in the types of

material comforts the children have access to since 2009, many of which are caused by changes in

technology.

In general children (still) have many material comforts 14/11/2013


9 year-olds Page 31

53%

97%

43%

37%

45%

54%

88%

37%

11%

73%

27%

95%

40%

37%

36%

48%

32%

16%

89%

46%

3%

74%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Mobile phone (Not a smartphone)

Bicycle

Pet

iPod/MP3 player

Stereo system

TV in his/her room

Smartphone (iPhone, Samsung Galaxy el. lign.)

Tablet (fx Apple iPad, Samsung Galaxy, Tab, HP Slate 500 el. lign.)

Own room

Own computer with Internet access

Own computer without Internet access

Games console (PlayStation, Xbox, Nintendo Wii, etc.)

Which of the following things does your child have?



68% 70%

20% 24%

10%

5%

0% 0% 0% 0% 2% 1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Denmark 2009 (n=160) Avg. 10€ Denmark 2012 (n=172) Avg. 7€

How much is your child’s mobile phone bill approximately every month? (Incl. talk time, SMS, subscription, etc.)

Base: Has mobile phone/smartphone

0-6.99 euro 7-12.99 euro 13-66.99 euro 67-133.99 euro More than 134 euro Don't know

57% have a mobile phone/smartphone and they use on average 7 € every month on the mobile phone/smartphone

14/11/2013


9 year-olds Page 32

57% of the 8 and 9 year olds have a mobile phone/smartphone. The average mobile phone/smartphone bill has

decreased from 63.01 DKK per month in 2009 to 55.33 DKK per month in 2012. There are no significant

differences in the share of 8 and 9 year olds across the different price groups.

57% have a mobile phone/smartphone and they use on average 55.33 DKK every month on the mobile phone/smartphone

14/11/2013


9 year-olds Page 33

68% 70%

20% 24%

10% 5%

0% 0% 0% 0% 2% 1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Denmark 2009 (n=160) Avg. 63,01 DKK Denmark 2012 (n=172) Avg. 55,33 DKK

How much is your child’s mobile phone bill approximately every month? (Incl. talk time, SMS, subscription, etc.)

Base: Has mobile phone/smartphone

0-50 DKK. 51-100 DKK. 101-500 DKK. 501-1000 DKK. More than 1000 DKK. Don't know

The share of children who have influence on the household purchases in the supermarket has decreased

since 2009. This change is not significant. Furthermore, there are no significant differences in the two age

groups and their influence on the household purchases in the supermarket.

Even less children than in 2009 have any influence on the household purchases in the supermarket

14/11/2013


9 year-olds Page 34

13% 10%

84% 89%

2% 1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Does the following statement describe your family? When my child comes to the supermarket with me, he/she chooses many of the products

we buy

Yes, that describes our family No, that does not describe our family Don't know

92% of the adults in the households have a smartphone and 56% have a tablet. There are no significant

differences between parents of 8 and 9 year olds when it comes to owning a smartphone and/or tablet.

92% of the adults in the households have a smartphone and 56% have a tablet

14/11/2013


9 year-olds Page 35

92%

56%

6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Which of the following products do you or other adults have in your household?

Smartphone (iPhone, Samsung Galaxy or similar)

Tablet (e.g. Apple iPad, Samsung Galaxy, Tab, HP Slate 500 or similar)

None of these

Children’s use of electronic entertainment

The following pages show how much time the children spend on

the following electronic entertainments per week:

• SMS/text

• Playing games on the computer (on the Internet)

• Playing games on the computer (not on the Internet)

• Using the Internet as a social network (MySpace, Facebook)

• Using the Internet to search for information

• TV

• Game consoles (PlayStation, Xbox, Nintendo Wii, etc.)

14/11/2013


The graph shows the 8-9 year olds’ use of the various devices according to their parents. Using the Internet as

a social network is the one most children do not use. The share of children who do not use the Internet as a

social network has, however, increased significantly since 2009. Even though more than half of the children

use texting, it is the device most children spend the least time on (less than 1 hour per week). It is also

interesting that the share of children who do not text has increased significantly since 2009.

The 8-9 year olds’ use of different devices 14/11/2013


9 year-olds Page 38

44%

48%

18%

17%

32%

37%

28%

23%

48%

43%

1%

2%

15%

36%

8%

4%

33%

26%

28%

22%

8%

10%

14%

19%

3%

7%

23%

23%

3%

1%

24%

17%

16%

8%

5%

3%

3%

4%

24%

21%

23%

15%

1%

10%

14%

6%

3%

1%

1%

1%

1%

22%

21%

15%

5%

5%

8%

2%

1%

1%

1%

21%

20%

8%

3%

3%

3%

1% 1%

1%

16%

12%

3%

4%

7%

1%

2%

8%

4%

2%

10%

5%

12%

13%

4%

4%

36%

44%

4%

7%

9%

23%

47%

60%

26%

30%

1%

2%

10%

9%

1%

3%

1%

1%

2%

2%

2%

2%

1%

1%

1%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%















How long does your child spend on the following per week?

Less than 1 hour per week

1-2 hours per week

3-4 hours per week

5-6 hours per week

7-8 hours per week

9-10 hours per week

More than 10 hours per week

Don't use at all

Don't know

SMS

Playing games on the

computer (on the Internet)

Playing games on the

computer (not on the Internet)

Using the Internet as a social

network (MySpace, Facebook)

Using the Internet to search

for information

TV

Games console (PlayStation,

Xbox, Nintendo Wii, etc.)

Documents

Financial Literacy among 8-9 year-old children 3 Financial Literacy among parents of 8-9 year-olds Purpose of the study Children as consumers How much does the mobile phone cost per