Boys and girls in London are UK's biggest savers
Children in London have the highest average savings balances in the UK, according to research based on savings accounts held with the Halifax.
Six of the ten local authority areas across the UK with the highest average savings balances held in children's accounts are in the capital. Average savings balances are highest in Harrow (£2,122) followed by Barnet (£2,016). Average children's savings in the UK are £1,064.
The other four local areas in the UK's top ten savings locations for children are all in southern England; South Buckinghamshire (£2,001), St. Albans (£1,940), Cambridge (£1,828) and Windsor and Maidenhead (£1,820). Outside southern England, children in Oadby and Wigston in Leicestershire have the highest savings with an average balance of £1,698.
These results, in many ways, are not unexpected given that the areas where children tend to have the highest savings are also those where adults have relatively high average earnings. Indeed, eight of the top 20 areas for children's savings are also in the 20 areas with the highest average earnings in Britain.
There are wide variations in children's savings balance between regions. The largest average balance is in Greater London where the average of £1,380 is almost 60% (£505) higher than in Scotland, which has the lowest average balance (£875).
Nitesh Patel, economist at Halifax, comments: "A few key features stand out regarding children's savings. There are wide variations in children's savings balances between regions, with generally higher balances in Greater London and the South East compared to the north of England and Scotland. These variations reflect, to a large extent, differences in average earnings for adults across the country. Boys, on average, have savings balances that are 5% higher than girls. Teenage children have savings balances that are typically higher than those held by younger children.
"Saving at an early age can play an important part in a child's future; learning savings habits early in life helps young people to understand the value of saving."