Education, education, education

Teaching children the value of a pound early on may be the ideal way to help them save for the future.

This week, Moneyfacts urged parents to start teaching their children about the important of saving by encouraging them to open their own bank account - particularly if they are starting a part-time job this autumn.

http://www.savingforchildren.co.uk/Education-can-help-children-save--181_1_18753316.html

While kids in their late teens have a range of high interest rates available to them to boost savings, some banks offer accounts for younger children.

The best way to help younger kids save may be to show them how their pocket money and birthday gifts can add up – almost before their eyes - with an account from a bank or a building society, according to Cumberland Building Society's Phillip Ward.

http://www.savingforchildren.co.uk/Saving-for-children-starts-with-teaching-about-saving--181_1_18739568.html

Many institutions offer introductory incentives too, which could be a great opportunity to allow children to make their own decisions about value.

However, parents, grandparents and godparents alike can all help to educate kids in the importance of saving for the future by looking after their own finances.

Earlier this month, Addidi Wealth's director Anna Sofat warned parents to not neglect their own financial well-being by offering too much support to their children.

"Anything over and above a decent education should be seen as a bonus, not a life necessity," she said - suggesting that while private schooling may benefit kids it should not mean home life should be sacrificed.

Furthermore, Ms Sofat argued that wrapping kids up in financial cotton wool would not help them in the long run.

"Where is the incentive for them to make something of themselves?" she asked.

Her sentiments were highlighted by figures from Skandia, which stated over a third of parents expected their kids to live with them throughout their lives.

http://www.savingforchildren.co.uk/Addidi:-Parents-should-not-neglect-themselves-181_1_18746021.html

While tough love may be the answer for older children and young adults, where saving for children is concerned, the earlier the better.

The Independent on Sunday highlighted the struggles many new mums and dads face due to a sudden dip in income once maternity leave begins.

According to the article, other countries in Europe have more generous maternity pay rules than the UK, where parents-to-be are advised to start putting away money long before the birth.

http://www.savingforchildren.co.uk/Mums-to-be-should-think-about-saving-181_1_18715499.html

And what better way to teach children the importance of saving than to welcome them into the world with a comfortable home?