Savvy youngsters save more than their parents

Published by Rob Goodman on 08 April 2014.
Last updated on 08 April 2014

Piggy banks

Savvy youngsters are saving more than their parents did at the same age, new research from Santander has revealed.

The bank said 94% of 11 to 16-year-olds are setting money aside for their future, with the average amount saved £28 a month - the equivalent of £336 a year. Nearly half (47%) are also making regular deposits into a bank account.

This compares to just 21% of parents who were making deposits when they were the same age and 83% who were saving cash when they were youngsters.

Unsurprisingly, most youngsters are preoccupied with the cost of university, with more than a quarter (26%) saying they are putting money away for their future studies.

Other teenage must-haves making the list of savings goals included clothing and personal items (25%), smartphones and tablet computers (22%), a holiday (18%) and a car (17%).

A very sensible 8% of youngsters said they were already putting money aside for a house deposit too.

But the bank of mum and dad won't be closing for business any time soon, with parents providing around half (£26) of youngsters' monthly income of £55. A part-time job brings in an average of £15 a month, while the rest comes from other family members.

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Shaping attitudes

Reza Attar-Zadeh, director of retail products for Santander UK, said: "The extraordinary economic climate of recent years is shaping youngsters' attitudes towards money.

"It's clear that many are more financially astute than grown-ups may give them credit for, and are adopting a positive approach to spending and saving their money."

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