East Mid's kids have highest savings in proportion to pocket money

Children living in the East Midlands have the highest savings balances in proportion to pocket money, according to research from Halifax.

These super savers have managed to amass an average balance of £1038 despite receiving pocket money of just £231.92 a year. This equates to more than four and a half years of saving every penny of their pocket money.

It would take children in the South East almost four years of saving all their pocket money (£281.84) to accrue the regional average savings balance of £1115, and the same amount of time for children in the South West to accumulate their average balance (£934) from their annual pocket money of £238.16.

Savings and pocket money facts

Despite having the second highest pocket money average (£426.40), Scottish children have the lowest average savings balance at £853.

Unsurprisingly, children in Greater London have the highest average savings balance (£1379) and the highest amount of pocket money (£440.44).

Only three other regions hold the same ranking for pocket money as they hold for savings balance, Wales (4), Yorkshire & Humberside (8) and the South West (10).

It would take children in most regions more then three years of savings all their pocket money to reach the regional average balance.

Speedy savings for wee Scots

It would take Scottish children just two years to save the average balance of £853 from their annual pocket money of £426.40. Similarly, children in the North would have to save for two and a half years to reach their average balance of £1026.

The next generation of savers

Children with the highest savings balances live in Greater London (£1379), the West Midlands (£1119) and the South East (£1115).

At the opposite end of the scale, Children in Scotland have an average balance of £853, some way behind the South West at £934, and the North West at £972.

Pocket money petites

Children in the East Midlands receive the least amount of pocket money at £231.92 per year, with the South West getting £238.16 a year and East Anglia £267.25.

Unsurprisingly, London tops the ranking as receiving the most pocket money at £440.44, closely followed by Scotland at £426.40. No other region receives an average pocket money above £400.

Ken Stannard, head of savings at Halifax said: "It is heartening to see that children are saving. It is important to encourage a good savings habit at an early age and explain the need of financial planning for the future."