British children are savvier savers than adults, according to the Halifax pocket money survey.

Around 60% save all their pocket money, or at least more than they spend, throughout the year, with over a quarter saving more than £5 per week (wish my pocket money had been that high).

The survey also shows that over two thirds of children save on a long-term basis for a particular item and 54% keep their cash in a bank or building society. The figures also show the savings habit is well-established among many children.

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In today’s world of rising debt and easy credit with the attitude of spend-too-much-and-save-too-little there is a huge need to try and guide young people towards sound financial habits early on – the earlier the better.

Prioritising spending and saving and setting goals are crucial reflexes that will children will be able to draw on throughout later life. Once the groundwork is in place you can have the peace of mind that this should help them develop a responsible attitude towards money management.

Mike Regnier, head of savings at Halifax, said: “Children are capable of saving money and are prepared to save up”. He added, “they appear to know the importance of looking after cash at an early age”.

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Boys are better savers than girls
The report also highlights that boys are more inclined to save up than girls. And, that young children aged between 7 and 11 are the best savers. You should get your child to put money aside regularly, either a lump sum or in a regular savings account.

Set up a savings goals to help your children save some of their pocket money. In the short term, they may develop strong savings habits and learn to make smart purchases.

In the long term, it should help them avoid debt. If you teach them the value of saving for the future, you can help them plan for financial security.

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Where your child should save
Many bank and building society child accounts pay over 5% interest or more and beat standard adult savings accounts. Beware of gimmicks and shop around for the best rates.

You should continue to check the change in variable rates so your child gets the best deal. Most banks and building societies allow children to open an account with a low minimum deposit.

Advertiser link: Click here to order free brochures on child saving

 

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