Get into the saving habit early

3 September 2008 04:04pm

People who saved money when they were children are nearly 60% more likely to be regular savers as adults, research has shown.

Around 56% of people said they set money aside when they were young, and among those who did, 71% save money regularly now.

But among people who did not save as children, just 45% set money aside on a regular basis as an adult, according to Nationwide Building Society.

At the same time, 92% of people who saved as children said they thought doing so had helped them appreciate the value of money and 78% said they thought their former savings habit influenced their behaviour now.

By contrast, 69% of people who did not save when they were younger, admitted they did not appreciate the value of money now.

Among people who did save as children, 53% said they did so primarily to afford things they wanted to buy, while 27% said they saved because of their parents.

Around 69% of people who did not set money aside when they were a child said it was because they did not have enough cash, with only 9% claiming it was because their parents did not save.

But despite their own differing attitudes towards saving, both child savers and non-child savers thought it was important to encourage their own offspring to set money aside, at 84% and 75% respectively.

Matthew Carter, director for savings at Nationwide, said: "Starting the savings habit young is important and clearly influences consumers' propensity to save in later life.

"Habits die hard, and this research shows that those who learnt the value of money and how to save effectively at a young age, are more likely to continue to do so in adulthood.It's heartening that so many people will encourage their children to save, even if they didn't save as a child."

© The Press Association