Children saving more than ever, Commonwealth Bank study shows

YOU can’t wipe the smike from this young girl’s face. She is one of more than 270,000 children nationally saving money more than ever before.

New research has shown that the benefits of school banking with kids stays with them well into adulthood.Seven year old Olivia is pictured at home in Mill Park with her coin jar.Picture:Ian Currie

KIDS are squirrelling away thousands of dollars in school bank accounts as record numbers stash their cash.

The amount of money youngsters are saving has soared almost 25 per cent in just a year.

And new research now shows the practice really does pay off later in life.

The Commonwealth Bank study shows people who did banking at school are the nation’s most astute savers — excelling across a range of measures including financial commitment, discipline and control.

LOOK OUT: Inactive bank accounts to be seized

Early start ... kids are squirrelling away thousands of dollars in school bank accounts. Picture: Supplied

The benefits of learning banking at school were evident no matter what a person’s age.

The finding comes as record numbers take part in the bank’s school banking program.

Across primary and secondary schools nationwide more than 270,600 are taking part, up 17 per cent in the year to June.

Deposit volumes rose 24 per cent.

School banking spokeswoman Danielle Murrie said while some students saved thousands it was the routine of making regular deposits that really mattered.

“You can bank 20c every week if that’s all your family circumstances can afford,’’ she said.

“It’s not the amount — it’s the behaviour.

“And establishing that behaviour is really what sets you up for really good behaviours when you’re an adult.”

Well prepared ... the Commonwealth Bank study shows people who did banking at school are the nation’s most astute savers. Picture: Supplied

More than 1200 people nationwide were last month surveyed as part of the Commonwealth’s research.

About 70 per cent who took part in school banking said it had a positive influence on their ability to save while more than a third could still recall the routines taught.

About nine in 10 believed such programs were beneficial for a child’s financial future.

Mill Park mum Allyson Connelly, whose seven-year-old daughter Olivia starting banking at school this year, hopes her daughter will develop a lifelong savings habit.

New research has shown that the benefits of school banking with kids stays with them well into adulthood.Seven year old Olivia is pictured at home in Mill Park with her coin jar.Picture:Ian Currie

The Grade 1 student banks about $5 a week, earned through odd jobs at home.

“It’s teaching her not only that you have to earn your money but it’s important to save it,’’ Ms Connelly said.

“She is at that age where she doesn’t understand that the numbers sitting there equate to physical money.

“So actually handling the money, handing it over and knowing it’s being stored somewhere is important.”

The Commonwealth’s research ranked Queenslanders as Australia’s best savers ahead of Victoria/Tasmania, WA, NSW/ACT and South Australia/Northern Territory.

Among the age groups generation Y, comprising people aged 18-30, was the most savvy ahead of generation X and the Baby Boomers.

Several financial institutions offer school banking.

Originally published as Children saving more than ever, Commonwealth Bank study shows