UK Parents Take Control of Their Tots Savings Pots

September 08, 2011 (PRLEAP.COM) Business News
According to new research from Lloyds TSB, a quarter (26%) of parents opened their child's first savings account before the tender age of two years old. Just under a fifth (17%) of organised parents in Wales and the North opened their child's first savings account before the age of one compared to 8% of Scottish parents.

In contrast to this, over a third (39%) of UK parents confessed their child doesn't have a savings account, with nearly half of Northern parents (44%) failing to open an account for their little one.

Under lock and key
Over a half (51%) of UK mums and dads said it was important they had overall control of their children's savings pot. Nearly three quarters of parents (72%) said their child has no access to their savings account, with a trusting tenth (10%) of parents allowing their child full access to their savings account. A compromising sixth (16%) of parents said their child saves into his or her account but is not allowed to withdraw money.

UK dads are less trusting of their offspring with over three quarters (78%) refusing their child any access to their savings accounts compared to almost a third (30%) of mums who would give their child full or partial access to their savings pots.

Over a quarter (27%) of parents said it was important that they are given prior notice before their child gets access to their savings pot.

Tots to Teens
When finally handing over the reins of savings pots, a third of UK parents (33%) think their child should become financially responsible at the age of 16 compared to more than three quarters (77%) of parents who don't think their child will be financially responsible until the age of 20.

Savings education
Nine tenths (89%) of parents believe it's their responsibility to teach their child money management with over a quarter (26%) of parents saying an online educational resource would be useful when trying to teach their child how to save and the importance of savings. A third (33%) of web savvy Welsh and Scottish parents prefer this method.

Lloyds TSB has launched a dedicated online educational site to help parents encourage their children to understand the importance of savings The site includes games and stories featuring characters from the Lloyds TSB Crocodile for Billy book, including Billy's trusted friend Stan. Designed to introduce children to savings in an engaging way, teach good savings habits and offering a great introduction to the importance of budgeting and saving, the site is a useful tool to help parents educate their offspring.

Greg Coughlan, Head of Children's savings at Lloyds TSB comments: "It's never too early for children to learn the value of money and that pennies will grow up into pounds, given the right encouragement and guidance. Having parents and grandparents focused on children's savings not only helps to increase financial awareness, but also promotes great budgeting skills. These skills will serve them well as they reach adulthood."

Research carried on by ICM Research from 12th to 14th August 2011. 2025 adults with children or grandchildren were interviewed.

Lloyds TSB Young Saver

  • A variable interest rate of 3.00% AER up to £20K and then 0.5%0 AER thereafter, which can be paid tax-free
  • Interest is paid quarterly (10th of the month in March, June, September and December)
  • Minimum opening balance of £1
  • Statements at least once a year to keep track of savings
  • Two months before the child turns 16, Lloyds TSB will write to the adult informing them that the funds will transfer into the child's name unless they instruct us otherwise.
  • Available to new and existing Lloyds TSB current account customers
  • Available in branch only
  • A special gift for the child, a moneybox to help them save subject to availability.
  • One account per child
  • Dedicated online educational site to help parents encourage their children to understand the importance of savings