Kids stash their cash and save more than their parents’ generation

Savvy youngsters are saving more than their parents’ generation did, with 94 per cent of today’s 11-16 year olds setting money aside for the future, according to new research from Santander 123 Mini.
 
The main priority for these forward-thinking youngsters is saving towards is college or university, with over a quarter (26 per cent) citing this as a reason for setting cash aside. Clothes and personal items (25 per cent), an expensive smart ‘phone or tablet (22 per cent), a holiday or travelling (18 per cent) and a car (17 per cent) were also commonly cited reasons for saving. Eight per cent of 11-16 year olds are even setting money aside for a deposit on a house.
 
Youngsters appear to be balancing their books carefully, spending about half and saving about half of their monthly income. The average amount saved by children is £28 per month, or £336 a year. This is just over half (51 per cent) of the average monthly income children receive, which is currently £55 per month.
 
Parents appear to be the main source of money for children, providing almost half (£26) of their monthly income. A part-time job brings in an average of £15 per month, whilst other family members and sources contribute the rest.
 
The Santander 123 Mini study, which questioned 11-16 year olds about their savings habits and then interviewed parents about their financial behaviours as a child, found that 83 per cent of adults saved money when they were their child’s age. However, while 47 per cent of children today make regular deposits into a bank account, just 21 per cent of their parents say they did this when they were that age.
 
Reza Attar-Zadeh, Director of Retail Products for Santander UK, said: “The extraordinary economic climate of recent years is shaping youngsters’ attitudes towards money. It’s clear that many are more financially astute than grown-ups may give them credit for, and are adopting a positive approach to spending and saving their money.”
 
He added: “We recently launched the 123 Mini account, which pays up to 3% interest and is supported by an interactive online calculator designed to help children learn about money management.”