Parents are encouraging young savers

Parents are realising the importance of finding the best savings rates and are opening accounts for their toddlers.

New research by Lloyds TSB revealed that a quarter of parents opened their child's first savings account before they reached the age of two.

A further 17 per cent of those in Wales and the north and eight per cent of those in Scotland set up a child's savings account before they had their first birthday.

However, 39 per cent of UK parents admitted that their child does not have a savings account, with this figure increasing to 44 per cent for parents in the north.

Greg Coughlan, head of children's savings at Lloyds TSB, said that it is never too early to get children involved in building up funds in accounts with the best savings rates.

"Having parents and grandparents focused on children's savings not only helps to increase financial awareness, but also promotes great budgeting skills," said Mr Coughlan.

Consumer Credit Counselling Service recently warned that many young people are reaching adulthood in debt because they do not know how to budget.

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2011-09-06 17:00:06 © Moneyextra.com