Generation Save? Children under 16 saving over £400 on average via pocket money

New research from Aviva reveals that parents¹ estimate their children, aged 16 and under, have saved £416 on average from their pocket money, highlighting early financial awareness and positive savings habits among Generation Alpha.

The study reveals that a quarter of parents⁵ (24%) estimate their child has saved between £201 and £500², while just under 1 in 10 (9%) believe their child has saved between £501 and £2,000³. These savings increase with age, as parents⁵ with a 6-year-old estimate their child has savings of £452, rising to £580 for an 8-year-old, and £616 by the time their child reaches 13.

Research shows nearly four in five parents (78%) encourage their child to save some or all their pocket money, and over half (56%) are depositing pocket money into bank accounts, junior savings accounts, or savings platforms. Of these, three quarters (75%) report their child’s account provides interest, and 93% believe their child understands the benefits of accruing interest by saving regularly³.

Building Financial Literacy Early

These savings figures are likely influenced by early conversations about money management, with three in four parents (74%) having discussed savings habits with their children under 16⁴. It seems that parents can’t start too soon, as more than half of those (51%) with a three-year-old have already begun instilling these habits, ensuring that children understand the importance of saving from an early age.

Those parents giving their child or children pocket money say they do so to help them understand the importance of saving (45%), to help them save for something they want to buy (45%), or to encourage them to understand how money can be earned, i.e. by doing chores for money or performing well in school (44%).

On average, parents⁵ give their children around £8 per week, with a 3 in 10 parents (30%) providing between £10 and £30⁵. Most parents⁵ (68%) report that their children are balancing saving with spending, using their pocket money for food (47%), toys (41%), and video games (35%).

Concerns About Financial Education

While most children receive their financial knowledge from parents or other family members (68%), a growing number are learning through social media and online influencers. According to their parents, one in five children (22%) glean information about money from platforms like TikTok and Instagram (13%) or online finfluencers (9%), with this figure rising to more than a third (37%) of nine-year-olds. This trend has raised concerns, with more than a third of parents (35%) worried⁴ about the quality and appropriateness of the financial information their children are exposed to online.

Aviva’s findings highlight the importance of early conversations about finances, strong parental guidance, and structured savings accounts to help children build a solid understanding of managing money and developing healthy saving habits.

Joanne Phillips, Managing Director of Aviva Direct Wealth, commented: “It’s incredibly encouraging to see how parents are actively fostering positive savings habits in their children from such a young age. As a mother of young children myself, I am acutely aware of how important it is to engender good savings’ habits in my kids.

“Our research suggests that Gen Alpha is emerging as Gen Save. Children are starting to save early, manage their money wisely, and build strong financial habits that will benefit them well into the future. Parents and family members play a crucial role in shaping these habits early, with many having important conversations about money management with their child as early as the age of three. With children already saving an average of over £400, they are gaining confidence in both the importance of saving and the benefits of interest-earning accounts—lessons that will serve them well during adulthood.

“For parents looking to teach their children about saving, our findings are encouraging—it’s both possible and highly beneficial. Exploring options like bank accounts, Junior ISAs, or digital savings platforms can help parents set their children up for success when they face larger financial challenges in the future."

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References:

<sup>1. Parents surveyed whose child saves their pocket money
2. Answers ranging from £201 to £500 combined
3. Answers ranging from £501 to £2000 combined
4. ‘Yes, we have spoken about it extensively’ and ‘Yes, we have spoken about it once/briefly’ answers combined
5. Answers ranging from £10 to £30 combined</sup>

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