Wide differences in children's savings account habits, says Halifax

14 October 2008 / by Daniela Gieseler
Children in Harrow, Greater London, are the best savers in the country, with the average balance in a child's savings account amounting to £2,193, according to a study by Halifax in 430 local authority areas.

Of the 25 local authorities which hold the largest balances in children's savings accounts 12 are in Greater London, including Brent (£1,927) and Barnet (£1,896), Kensington and Chelsea (£1,833), Westminster (£1,713) and Redbridge (£1,707).

By contrast, the lowest levels of savings are found in Gosport, Hampshire, with £673, and Thanet, Kent, with an average of £677.

Scottish kids tend to save less, with the average balance in their child savings being 62 per cent lower than in England.

Overall, the average balance of a children's savings account in the UK is £1,049. By the nature of the study, Halifax did not include any children without savings accounts.

On a gender level, boys managed to accumulate higher savings balances than girls in all the 12 regions Halifax researched, with £1,073 against £1,024 – a difference of five per cent. The biggest percentage gap is found in Wales, where an average boy's balance is nine per cent higher than girls'.

"Saving at an early age helps play an important part in your child's future learning," said Martin Ellis, chief economist at Halifax. He added that teaching "savings habits early on in life can help ensure young people understand the value of having savings."

© Fair Investment Company Ltd