New figures suggest that children as young as 10 are already making savings for various points in life, with university being a key example.
The news comes from a report published by Scottish Widows. The findings suggest that children are more aware of the current economic situation, saving up for various expenses later in life from an early age.
11% of children, for instance, were said to already be saving up for college, university or their first home. Another 6% also said they were saving for a car or vehicle. 2% are even storing money away to start their own business. Of course, not every child is as financially savvy or long-term orientated, as 48% still save up for toys and games according to the report.
Overall, around 98% of the 10 year old children asked indicated they were already squirreling money away. Whilst the reasons varied, this is a lot more than current adults at that age. Only 15% of adults that were surveyed said they were saving before the age of 15.
In terms of actual money, the average amount of pocket money received was between £5 and £9 a week. Only 10% put all of this into savings, but the rest of the 98% still saved a share of this money.
Current and Long Term Financing
It is thought that this study may indicate the effect today’s economy, and the news surrounding it is having on young children. Children arguably appear to be more financially minded and savvy. They also seem to show long sightedness. 70% of those surveyed, for instance, understood the concept of a pension. That said, 10% assumed a retirement age of under 50.
Of course, sometimes, it doesn’t matter how much planning is done – unexpected expenses can still cause problems. If you’re in need of cash until you get paid, same day loans are simple to apply for, and you’ll get a decision in minutes.