Money management for children

Children are becoming increasingly interested in their own finances and money management arrangements, according to new research from Halifax.

The new age of responsibility

This increased awareness in financial matters has led children to believe that they should be responsible for their own money and financial arrangements at 13 years of age.

Over a third of children (37%) believe they should take responsibility between 11-15 years of age, but 23% believe that financial responsibility should wait until 16-20 years old. Interestingly, older children aged 12-15 believe that responsibility should come at 14, whereas those aged 8-11 state a younger age of 13.

Holding the financial reins

Over a third of children (38%) keep their money in a bank or building society account. This figure increases to almost half (45%) of 12-15 year olds, compared to 31% of 8-11 year olds.

Parents have demonstrated a key role in getting their children into the savings habit at an early age with 69% of children using an account opened for them by their parents and 20% also use the same bank as their parents.

Over half of children (57%) have their accounts managed by their parents. However, 37% have control of their own finances and take their own money to the branch to pay in. This is a significant increase on the 23% recorded last year.

Finance comes top of the class

Finance is the hot topic and when children were asked which areas they would like to learn more about; savings (77%), credit cards (24%) and mortgages (13%) came top of the class.

Over two-thirds of children (69%) would like to receive financial education and advice from their parents at home, followed by 18% from teachers at school.

On a regional basis, 80% of children in the East Midlands would like to learn about finance from their parents, compared to over a half (56%) in London. Some 10% of children in the East Midlands would like their financial education to be undertaken by their teachers, less than half of that of children in the South West (23%).

Flavia Palacios Umana, senior manager, Halifax savings products, said: "Children can get in the savings habit at an early age by putting a fixed amount of money away each month, no matter how small. This will not only encourage children to get into a structured savings habit, but will also help them learn the importance of budgeting.

"These skills, alongside an understanding of financial matters, will help them to more effectively manage their money and financial commitments now and in the future."