Good financial habits can last a lifetime

Michelle Slade, analyst at Moneyfacts.co.uk, comments: "As another new school year is about to start, there will be many teenagers who are about to move into the world of either full-time or part-time work. In the last month there has been much written about finance for students, but not everyone heads off to university. For most of these teenagers, it will be the first time they have really had to manage their money.

"The banks know that many customers are reluctant to switch current accounts once they settle on a provider, so they tempt youths with attractive accounts in order to maintain their loyalty in later life.

"At this time in their life, they are likely to have a large amount of disposable income. As we never know what is round the corner, it is good to get into the habit of saving. There are many accounts on the market, but a first good option would be a cash ISA as these are tax free and available from age 16. Accounts paying higher rates can be found at smaller regional building societies or by opening the account with a larger deposit.

"Children don't receive information at school about financial matters, so as parents it is up to us to teach our children how to budget and save. By getting children into the habit of saving and managing their money, they can learn financial skills which could last a lifetime.

"By teaching them the skills when they are young, hopefully we can stop another generation getting into as much debt and avoiding the financial mistakes that this generation has made."