A new research report from Tesco Bank indicates that British parents are doing a good job at teaching children about the importance of savings. They are also going beyond savings and educating them about income and expenditures. Children that learn these lessons early in life benefit as adults.
The report showed parents of children ranging from 4-15 years of age paid out funds for chores at an average of 5.80 pounds a week. Nearly 65 per cent of the parents said they explained the concept of money to their children.
The report showed that 54 per cent of the children saved money in a piggy bank at home while 35 per cent have their own savings account at a bank.
Dr. Elizbeth Kilbey, a child psychologist who was involved in the Tesco Bank research said: “It’s great to see so many parents across the country rewarding and reinforcing children’s good behavior with pocket money. You can never start financial education early enough in a child’s life and this approach is by far the best way to teach children good habits.”