Seven-year-olds overestimate savings
A new survey has revealed that children are keen to start saving from as young as seven years old, with some believing their bank accounts will be in credit by millions.
Conducted by the Post Office, the survey asked seven-year-old youngsters how much they will have saved up by the time they are 18, with one in ten believing they will have accrued £1 million or more.
Some 33 per cent had more realistic expectations, saying they will have between £1,000 and £10,000 stored away in a savings account in the UK in 11 years' time.
According to the research, the average weekly pocket money a seven-year-old receives is £3.24, with nearly 50 per cent of the children admitting to spending it all on pocket money, and the Post Office said that the future might not look so bright given the circumstances.
One way to make sure that children have enough savings to fund their lifestyles later on, the firm says, is to take out a Child Trust Fund.
Richard Norman, director of savings at the Post Office, said: "This is a timely window into the minds of seven year olds which shows that many are quite optimistic when it comes to money!
"The Child Trust Fund scheme is an ideal way for parents or grandparents to put money aside which they and their children can then watch grow. And then when the children reach 18 they'll be able to get that car, or pony if it's still preferred," he added.
Some 4.4 million parents are now making tax-efficient savings for their offspring's future through a Child Trust Fund with the Children's Mutual, it was recently announced.
The firm believes that the figure is a sign of a "continuing revolution" in savings for children and will mean that they will have a greater understanding of finances when they grow up.
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