Kids set for Christmas shopping spree

Many children have built up a good nest egg for this years' Christmas shopping. Three in five children save more than they spend and a quarter (25%) save more than £5 per week, according to new research from Halifax.

Despite having the lowest weekly income (£24.59) compared to the UK average (£33.59), children in the West Midlands look set to do the most Christmas shopping this year. Children in the West Midlands are the nation's best savers with three quarters (75%) stating that they save all their money or save more money than they spend. This is followed by Welsh children at 68%.

Children in Yorkshire and Humberside are the worst savers with only 42% saving all of their money or saving more than they spend. In 2005, Welsh children were the worst savers with only 31% saving all of their money or saving more than they spend.

However, when it comes to getting their dream present this Christmas, almost one in five (22%) would resort to pester power to get what they want.

Key findings of the Halifax research are:

Children will have built up a good nest egg for this years' Christmas shopping - Three in five children (58%) save all their money or save more than they spend. In 1988, only a third of children saved more money than they spent.

A quarter of children save more than £5 per week - A quarter of children (25%) save more than £5 per week and just under a quarter (24%) save less than £5 per week.

Saving habits vary on a regional basis:

Children in the West Midlands look set to do the most Christmas shopping this year – Children in the West Midlands are the nation's best savers. Despite having the lowest average weekly income in the UK (£24.59 compared to the UK average of £33.59), over three quarters of children in the West Midlands (76%) save all their money or save more than they spend, followed by Wales at 68%. In 2005, Welsh children were the worst savers with only 31% saving all of their money or saving more than they spend.

Children in Yorkshire and Humberside are the worst savers – Only 42% of children in Yorkshire and Humberside save all their money or save more than they spend, followed by 43% of children in both Scotland and the South West. However, children in Scotland have the third highest average weekly income at £43.21.

Spending and saving habits vary according to gender and age:

Boys will have a bigger nest egg for Christmas present shopping than girls - Fewer girls than boys save all of their money. Only 52% of girls save all their money or save more than they spend compared to 64% of boys. This means that the perception that girls enjoy shopping starts from an early age. In addition, almost three quarters of seven to 11 year old boys (74%) save all of their money or save more than they spend, compared to only 56% of 12 to 16 year old boys. Furthermore, 64% of seven to 11 year old girls save all of their money or save more than they spend compared to 42% of 12 to 16 year old girls.

Younger children are more inclined to save – Over two thirds of seven to 11 year olds (69%) save all of their money or save more than they spend, compared to only 49% of 12 to 16 year olds. However, even though they are more inclined to save, younger children have a lower weekly income and therefore save less money each week. Seven to 11 year olds have an average weekly income of £15.88 and 20% of them save less than £5 per week, whereas 12 to 16 year olds have an average weekly income of £40.48 and 30% of them save more than £5 each week.

The way children save money:

Banks and building societies are still in favour – 54% of children save their money in a bank or building society account, followed by 38% in a purse or wallet and 35% in a moneybox. Children in Northern Ireland use banks and building societies the most with 84% saving their money this way, compared to children in the West Midlands who use them the least at 35%. In addition, Post Offices are out of favour as only 2% choose to keep their money in these accounts.

The use of bank and building society accounts increases with age - Only one third (30%) of seven to 11 year olds store their money in a bank or building society account, but this increases to 73% for 12 to 16 year olds. Consequently, 12 to 16 year olds are less likely to use a money box at this age, with only 29% of 12 to 16 year olds using one, compared to 42% of seven to 11 year olds.

Children's attitude towards saving for a particular item:

Pester power at Christmas time – Almost half of children (45%) would save until they could afford to buy an expensive item that they wanted. However, one in five (22%) would resort to pester power to get what they wanted. This is most common for over a quarter (26%) of seven to 11 year olds, compared to only 18% of 12 to 16 year olds.

If you see something you really want, do you...?

Half of children are saving for a particular item – Almost half of children (47%) are currently saving for a particular item with 47% saying that they would be able to afford it within the next three months. Over two thirds (69%) are saving on a long-term basis, stating that it would take six months to save enough. 12% say that it would take longer than twelve months to save enough.

Saving for particular items varies according to gender and age – 51% of boys would save their money until they could afford it, compared to 40% of girls. In addition, only 42% of girls aged 12 to 16 would save up to buy the item themselves, compared to 64% of boys aged 12 to 16.

Mike Regnier, head of savings at Halifax said: "It is great to see that children have a positive attitude towards saving and are starting to get into the savings habit at a very young age. Children are capable of saving money and are prepared to save up for Christmas shopping or expensive items that they want. It is encouraging that they appear to know the importance of looking after their cash at such an early age."

Children and mobile phone ownership:

Over three quarters Of Children Own A Mobile Phone – Over three quartersof seven to 16 year olds (77%) now own a mobile phone. Not surprisingly mobile phone ownership increases with age and is typically favoured amongst older users. 94% of 12 to 16 year olds currently own a mobile phone, compared to only 57% of seven to 11 year olds.

Children in London are the biggest mobile phone owners – On a regional basis, children in London are the biggest mobile phone users. 97% of children surveyed in London own a mobile phone, compared to only 56% in the West Midlands.

Three quarters of children spend up to five hours a week on their mobile phone - Three quarters of children (75%) claim to spend up to five hours a week using a mobile phone, whereas almost half (47%) spend up to two hours. Mobile phones are considered by children to be a key way in which to communicate with friends (59%), family members (28%) and boyfriends or girlfriends (12%.) Theemphasis that children put on calling their friends increases with age and 65% of 12 to 16 year olds predominately use their mobile phone to contact their friends, compared to only 42% of seven to 11 year olds.

'Pay as you go' phones are the most popular - A ‘Pay as you go’ phone is the most popular payment option for 79% of children and only 21% of children have a contract phone. The uptake of 'Pay as you go' phones differ on a regional level and in London 63% of children have ‘Pay as you go’ phones and 37% are on contract phones. The highest level of 'Pay as you go' phones is in the East Midlands, where 90% have 'Pay as you go' phones and only 10% of children have contract phones. In addition, older children are more trusted with contract phones, with 23% of 12 to 16 year olds having one, compared to 17% of seven to 11 year olds.

Parents are lending a helping hand on mobile phone payments - There has been a decrease in the number of children who are responsible for paying their own phone bills (40% in 2006, compared to 47% in 2005.) However, there has been an increase in the amount of additional money received from parents to spend on their phones (16% in 2005, compared to 25% in 2006.) For those that do pay their own mobile phone bills, 7% spend less than £1 per week, 22% spend between £1 and £5 and 20% spend over £5 per week.