05 Apr 2018 New research by Santander reveals parents believe children understand the value of money on average at ten-years-old. This is the age they stop believing money is infinite, that it must be earned, and it is important to save.
One in fourteen (seven per cent) parents believe their precocious children grasped the concept of money by school age (five years old), however 19 per cent believe the true value of money is only grasped as a teenager or older.
Today’s generation of children are being brought up in a culture of saving that parents say they never had. Almost three quarters of parents say their children, understand the importance of saving money.
When children were asked about saving more than eight in 10 (84 per cent) highlighted they like to put money away for the future. The research also shows boys are more committed (89 per cent) to saving than girls (77 per cent). On average, children save 41 per cent of the money that they get.
The study also reveals parental guidance on savings is improving across the generations. While more than a quarter of parents weren’t taught the value of financial planning by their parents when they were young, just 13 per cent of the current parents aren’t teaching this to their children. Almost a third (32 per cent) of UK parents admit they wish their parents had taught them the importance of saving when they were young, leading them to be more conscious about educating their own offspring.
However, there seems to be little expectation among parents that schools should be responsible for financial education. The majority of parents across the UK believe they have responsibility for teaching their children about the importance of saving, just 10 per cent believe this responsibility sits with schools and teachers.
To help their own children plan for the future, parents believe that the top financial lessons their children need to learn is the importance of saving, followed by spending sensibly and then how to budget.
Hetal Parmar, Head of Savings at Santander, said: “Saving and budgeting are important life skills so it’s encouraging that so many parents take this seriously. At Santander we aim to help people achieve their savings goals in a number of ways. Our Regular eSaver offers up to five per cent interest rate to reward a regular savings habit, our Investment Hub makes investments more accessible and our ‘savings goals’ feature within online banking is there to help customers plan for the future. For youngsters we also have the 1I2I3 Mini account paying three per cent interest on balances of £300 – £2,000 and our Junior ISA giving returns of up to three per cent.”
When children were asked why they like to save money, almost half said they wanted to use it to buy sweets or entertainment. Children are also motivated by saving for days out and holiday spending money .
For more information on Santander’s savings products please visit: www.santander.co.uk/savings
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