Parents 'should help kids engage with their cash'

Parents around the UK should use a savings account to help their children engage more with any money they receive, according to one expert.

Lisanne Mealing, from the independent financial advisory firm MDM Associates, suggests that by opening a child savings account parents can help their sons and daughters gain the kind of personal finance skills that will help them in later life.

Via a child savings account, young Britons will begin to understand how interest accumulates and how to budget effectively when they are given pocket money to spend, Ms Mealing indicates.

"I think the first tip would be to open up some kind of bank account for the child - as early an age as possible," she said.

A recent survey carried out by the LV= financial services firm revealed that children in the UK typically receive close to £5,500 worth of pocket money between the ages of five and 18.