Youngsters avoiding debt by saving early
Research from The Children’s Mutual has revealed that children as young as 11 have started saving towards their future.
The Child Trust Fund provider found that almost one third of youngsters aged 11 to 18 are putting money aside for higher education as these astute youngsters have seen older family members suffer due to university debts.
The research also found that over 30% of parents realised they are not saving enough towards their children’s futures.
Rising mortgage costs and higher food and fuel costs has meant that household finances are overstretched and savings have taken a back seat.
David White, Chief Executive of The Children’s Mutual, noted that today’s teenagers are taking the necessary action to avoid the high level of debts that are burdening today’s graduates.
According to The Children’s Mutual, the cost of three years at university now stands at £40,400 and with four times more teenagers heading off to university than 30 years ago, the organisation believes it is even more important to start saving at an early age.
The Children’s Mutual found that the average graduate leaves university with a £17,500 debt.
In related news, earlier this year, the Government announced plans for more personal finance lessons in schools.
A spokesperson for the Department for Children, Schools and Families, said from 2008, children will be taught how to open a bank account, understand basic financial concepts like interest rates and learn important skills to plan for their financial future as part of an £11.5 million boost to personal finance education.
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