Affluent Parents Dedicated to Instilling Strong Values in their Children
NEW YORK, Sept. 20 /PRNewswire/ -- Affluent parents are teaching their
children to value philanthropy, cultural experiences, and other personally
enriching activities above material goods according to the Third Annual
American Express Platinum Luxury Survey. Ninety-one percent of responding
parents indicated that they encourage their children to participate in
charitable or philanthropic activities and almost two-thirds (62%) of
children have donated a part of their own money to charity. The Third
Annual American Express Platinum Luxury Survey included 1,170 respondents,
with an average of two children and an average annual household income of
$472,000.
Almost all parents (94%) surveyed said that they want their children to
have experiences that assure they are cultured and well-rounded, and even
more (96%) spend time talking to their children about good ethics and
values. As such, when affluent parents do spend significantly on their
children, the survey results revealed it is on cultural activities, such as
international travel, with two-thirds (68%) of respondents' children having
traveled internationally. Even when shopping with and for their children,
parents emphasize the experience more than the purchases as 66% of parents
reported that the experience of shopping with their children is more
important than what they buy.
"Affluent parents are raising their children to be value-conscious
consumers with an appreciation for life-enriching experiences," said Simon
Kahn, vice president, Platinum Card Product Management for American
Express. "Whether it's today's affluent parents, or the next generation,
the benefits and services of the American Express Platinum Card(R) enable
Card members to expand their world while traveling, shopping, or indulging
in the experiences important to them."
Next Generation of Responsible Consumers
Parents said they emphasize the value of the dollar through discussions
with their children, and these affluent children are frequently taking
part- time jobs when they reach the age of 15. Parents also stress the
importance of philanthropy with their children and lead by example, giving
both money and time to charity.
* Eighty-one percent of respondents indicated that they believe their
children appreciate what they have.
* Similarly, 76% of affluent parents believe their children understand
the value of a dollar.
* About half (53%) of all children aged 6-17 receive a regular
allowance. The average weekly allowance for children aged 6-14 is $7,
and $21 for children aged 15-17.
* Forty-five percent of children in the 15-17 year age range have part-
time jobs. For children aged 18-21, 73% have part-time jobs.
* Ninety-one percent of parents encourage their children to participate
in charitable activities and two-thirds (67%) of all respondent's
children do so, or donate part of their own money to charity (62%).
* Nineteen percent of adults identified volunteer events and charity
functions as a personal passion. Of those that did, 80% indicated that
they include their children in such activities.
Emphasis on Experience and Enrichment
The survey revealed that when affluent parents spend on their children
they do not accentuate the acquisition of material goods, but the
accumulation of experiences. Frequently, they share experiences with their
kids including fitness, dining or theater activities. And children of
affluent parents are increasingly worldly, often traveling internationally
at a younger age than did their parents.
* The top three personal passions among parents were identified as
physical fitness (45%), dining out (39%) and travel (39%).
* Parents are sharing their passion for physical fitness with their
children, with over half (53%) of respondents' children receiving
personal lessons for sports.
* Of those affluent parents (39%) who identified travel as a personal
passion, 92% indicated that they include their children in their
travel activities.
* Affluent parents surveyed said when it comes to personal passions they
spend the most money on travel, with an average overall annual spend
of $13,004. Of the 22% of respondents with a reported household income
above $600,000, average overall annual spend on travel increased to
more than $20,000.
* Interestingly, over two-thirds (68%) of children were reported to have
traveled internationally before the age of 17, with 80% of boys aged
13-14 and 77% of girls in the same range having already done so.
Parents reported their first international trip at an average age of
19.
* When it comes to dining out, parents said they spend an average of
$5,786 annually. Eighty-four percent of those parents that identified
dining out as a passion reported that they include their children in
this activity.
* Forty-one percent of parents reported that their child aged 17 or
under is taking music lessons, and 55% of children are attending
theater and music performances.
* Ninety-four percent of parents said they believe their children have
experiences that make them more cultured and well-rounded.
* Two-thirds (66%) of parents indicated that they would give up 20% of
their salary to spend 20% more time with their children.
Spending on the Basics
Parents reported that they do not spend extravagantly on the basics,
such as haircuts, jeans and sneakers. However, parents indicated that they
splurge for certain items and gifts for special occasions. For example:
* Sixty percent of parents reported that their children keep up with the
latest fashion trends. Yet, on average, parents spend $53.50 for
sneakers, which is above the national average of $33.74(1) but well
below the $100+ price tag of many popular brand-name sneakers today.
* On average, parents spend $42.50 for jeans for children 6-17, which is
above the national average of $17.82(2) but below the higher prices of
popular designer labels.
* Parents reported spending an average of $59 a month on athletic
equipment for their teens and an average of $40 per month for personal
electronics.
* For holidays and birthdays, however, parents reported spending at a
higher level for their children. The average combined holiday and
birthday expenditures for children aged 6-14 was $738, $977 for
children aged 15-17 and $992 for ages 18-21.
* Roughly one-third (33%) of children aged 15-17 are reported to own
their own cars, with an average value of $15,682. Of these teens with
cars, roughly two-thirds (65%) had their cars paid for by their
parents and 17% received their parent's car when the parent bought a
new one.
METHODOLOGY: About The American Express Third Annual Platinum Luxury
Survey
The Third Annual American Express Platinum Luxury Survey was a
quantitative survey conducted in June 2006 among a random cross-section of
1,170 affluent consumers in the U.S. Relevant facts of the survey include:
* Survey responses were drawn from a national sample, including 26% from
New York, 32% in Los Angeles, and 42% from the rest of the country.
* Respondents had an average net worth of $4.3 million and an average
household income of $472,000.
* Ninety-six percent of respondents were married, had an average age of
47 and averaged two children per household.
Those surveyed had to report a household income of at least $150,000
and fall in the age range of 30 to 59 to be considered. Respondents were
not required to be American Express Card members to participate.
The American Affluence Research Center conducted the survey on behalf
of American Express.
About the Platinum Card from American Express
Launched in 1984, the Platinum Card from American Express was the first
of its kind in the market and is designed specifically to meet the needs
and desires of the affluent consumer. For more than 20 years, American
Express has continued to evolve and enhance the Card by adding new benefits
and services to meet the changing needs of customers. Today, the Platinum
Card offers more than 40 distinctive benefits and services, including:
airport club access, special amenities such as room upgrades and guaranteed
late check-outs at more than 500 of the world's most luxurious hotels and
resorts; VIP shopping benefits, including access to private sales and
dedicated personal shoppers at top luxury retailers; and access to
once-in-a-lifetime "By Invitation Only(R)" experiences from a Zero Gravity
flight with astronaut Buzz Aldrin to on-stage seating at a Rolling Stones
concert. Platinum Card members also enjoy a superior level of personal
service through the Platinum Concierge and Platinum Travel Service. The
Platinum Card also provides Card members with the financial securities and
protections that are synonymous with the American Express brand and
reputation.
About the American Express Platinum Luxury Survey
Throughout the evolution of the Platinum Card, American Express has
employed many methods to understand what motivates and engages the affluent
consumer. The Third Annual American Express Platinum Luxury Survey is the
company's most recent study of the affluent market.
About American Express
American Express Company (http://www.americanexpress.com) is a leading global
payments, network and travel company founded in 1850.
(1) The NPD Group, Inc.
(2) The NPD Group, Inc.
SOURCE American Express
 back to top
Related links:
http://www.americanexpress.com
CONTACT:
Desiree Fish, +1-212-640-4761,
desiree.c.fish@aexp.com, or Monica Beaupre, +1-212-640-2653,
monica.beaupre@aexp.com, both of American Express; or Paul Downs,
+1-212-253-4646, pdowns@bncpr.com, or Kevin Ray, +1-212-253-4646,
kray@bncpr.com, both of BNC
|
