Kids increasingly choosing banks and building societies

The amount of children saving their money has gone up in the last year, with banks and building societies in particular benefiting from the trend.

Halifax has conducted research showing that over half of children save their money in a bank or building society account, while only three per cent save with the post office.

Children have a positive attitude to saving, Halifax found, and save much more than they did in 1988, when only a third of children saved more than they spent.

Boys are more likely than girls to save all or most of their money, at 27 per cent, compared with 25 per cent of girls.

Children in the West Midlands save more than in any other part of the UK, with 70 per cent either saving all their money or saving more than they spend. Children in Wales showed the lowest rates, at 31 per cent.

Cheryl Millington, head of savings at Halifax, said that it was important that savings habits were learnt early on in life.

"It is great to see that children are starting to get into the savings habit at a very young age and particularly encouraging that they appear to know the importance of looking after their cash," she commented.