Ensure children are financially aware

Parents have been encouraged to teach their children how to be financially aware and independent so that they know how to find the best savings interest rates and deals.

Helen Letchfield, co-founder of ParentingforProfessionals.co.uk, said that in the modern climate particularly, parents can feel pressure to support their children financially for longer as they face increasing university fees and have to pay more to get on the property ladder.

However, she claimed that dependence in parents should be discouraged so they know how to stand on their own financially.

"Children should not grow up expecting to be financially supported. The lessons children learn by earning their own pocket money from a young age are not just about getting extra pounds in the pocket," Ms Letchfield explained.

She added that pocket money provides them with key life lessons that can prepare them for the world of work – including motivation, determination and pride.

"That said, it's always sensible to know that you would be able to step in and support your children if they ever needed it."

Building up money in accounts with the best savings interest rates is a key way to provide for children, she said, and many parents start thinking about saving for their child's future as early as pregnancy.

Ms Letchfield suggested that planning ahead and even putting away a small amount each month is enough to make a difference.

Kate Moore, head of savings and investments at Family Investments, said something similar last month. She claimed that by teaching children about the best savings interest rates and how to budget, they can avoid debt pitfalls.

This will be essential if the next generation is to be able to afford university and to get on the housing market.

However, she conceded that with all the other costs associated with childcare, saving can be at the bottom of to-do lists.

Moneyextra.com recommends you take independent financial advice before acting on any article

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2011-12-01 13:07:59 © Moneyextra.com