Children and money - how important is their piggy bank?

Posted 03.04.2020

The Financial Health Exchange claims that young adults who have not received financial education as children, are at higher risk of poor outcomes as they grow up.

Shockingly, over two thirds of 13-17-year old’s have seen a pay day loan advert on television. Many are even targeted online through ‘pay-to win’ advertising. This can result in young adults being 50% more likely to believe online banking scams compared to their parents, putting them at greater risk of becoming victim to fraudulent activity.

Those aged 18-24 are at greater risk of debt if they do not receive a level of financial education. StepChange, a debt charity, claims that 14% of their clients are now under the age of 25. With young adults facing huge financial challenges, such as higher education, mortgage lending and Lifetime ISA’s, when is the right time to learn?

Research has proven that between the ages of three and seven, children pick-up fundamental financial habits. If children learn the wrong habits in their early years, these can impact money management abilities in early adulthood. It’s much harder to unlearn behaviors as we develop, so how do we teach the right ones?

Simply talking about money from a young age and providing pocket money can teach children vital skills. Pocket money can teach children the benefits and value of saving money, to purchase and appreciate what they really want.

It can be tricky teaching children about the cost of their favourite toy – so why not show them?

Robert Gardner, Director of Investment Management from St. James’s Place has published a children’s book called ‘Save your Acorns’. We offer this to our clients with young children, helping to teach the importance of saving.

If you’d like a copy of ‘Save your Acorns’ to share with your family, please contact us today on 01332 497670 and we’ll be happy to send one to you.


The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

Financial Health Exchange, All Party Parliamentary Group on Financial Education for Young People Report: Financial Education in Schools: Two Years on – Job Done?, 2016, p17:

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Rhodes Wealth Management Limited is an appointed representative of and represents only St. James's Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group's Wealth management products and services, more details of which are set out on the Group's website. The titles 'Partner' and 'Partner Practice' are marketing terms used to describe St. James's Place representatives.