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Crisis Creates New Generation Of Savers As 10-Yr-Olds Plan For University And A House

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http://www.thisismoney.co.uk/money/saving/article-2318810/Crisis-creates-new-generation-savers-10-yr-olds-plan-university-house.html?ito=feeds-newsxml

There is a video on the link

'If one day there's no money left I'll have enough to survive on'

The financial crisis has created a generation of child savers who have started to put money aside by the age of 10 to pay for milestones such as going to university and buying a house, an insurer has claimed.

Growing up in the crunch appears to have given children today a more pragmatic approach to their finances than their parents, according to research commissioned by Scottish Widows.

It said that almost all - 98 per cent - of the 10-year-olds it asked had started saving, while just 15 per cent of adults they asked said they had started saving before reaching 15. These children started school around the same time as the credit crunch and banking crisis first became evident in 2007.

With the prospect of university tuition fees and a typical 20 per cent deposit currently put down by first-time house buyers, 11 per cent of children said that they have already begun saving towards the cost of college, university, or buying a home.

A further 6 per cent said they are saving up for a car - while 2 per cent of entrepreneurial children said they are putting money aside to start their own business. However, toys, games and gadgets remain children's savings priorities, with 48 per cent of youngsters saving up for this purpose.

The majority of children who regularly receive pocket money said they get between £5 and £9 a week. Most children said that they save a portion of this cash, although 10 per cent put all of it away.

Seven out of 10 children surveyed were found to understand what a pension is - although 10 per cent think they will be able to retire before the age of 50.

Oxford University professor of economic history Jane Humphries, who helped analyse the data, said: 'These children started school around the start of Britain's financial crisis, so perhaps growing up in an age of austerity has made them realise that saving for a rainy day is sensible.

'The rising costs of education may have prompted their concern with saving for university or college.'

The findings come at a time when moves are afoot to improve young people's ability to handle their finances. Plans were announced in February for financial education to become compulsory in secondary schools across England.

The report also suggested that parents may be having a stronger influence on their children's savings habits than previous generations.

Some 68 per cent of parents said they actively encourage their children to save, although almost half of adults - 48 per cent - said their own savings habits were not particularly influenced by anybody.

Is it me or is this just a sales ploy?

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What a ridiculous article... 10 year old save part of the £5 week, yes perhaps but that's because their want to buy the lastest PS3 game not because they are putting money towards the future cost of University or buying a house.

Did the journalist who wrote that thinks people are going to buy this story?

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I've probably laid it on a bit too heavy with the potential gun's 'n' beans dystopia that my 9-year old may have to look forward to. He's saving every penny he gets to buy agricultural land and electric fencing. Really.

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my 9-year old ... He's saving every penny he gets to buy agricultural land and electric fencing. Really.

Sensible lad. Now all he needs is a shovel and some gold to bury in a pit on the land he buys.

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Whats the point of saving anyway....all you are doing is fighting the debt based system

Yeah, saving now seems so 20th century, thanks to the turds who run this country.

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10 year olds should start saving for a house and university for their children that they are going to have later. The perils of multi generation mortgages. :ph34r:

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Report commisioned by a financial services company as others have said says it all! On five live they had a financial advisor who said he had enrolled the young en in a pension but had not started working.

Edited by Ash4781

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Today's Telegraph Money: child savers can now earn more than their parents (instant access) with Halifax/Bank of Scotland's new Young Saver a/c paying 3%, up from 2%.

Min of £1 and they can have a cash card. However if savings exceed £20,000 rate goes down to 0.5%.

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Today's Telegraph Money: child savers can now earn more than their parents (instant access) with Halifax/Bank of Scotland's new Young Saver a/c paying 3%, up from 2%.

Min of £1 and they can have a cash card. However if savings exceed £20,000 rate goes down to 0.5%.

Where do the children get their money to save? A) From their 'Hardworking Parents' or B ) Government PONZI saving schemes like Child Trust Funds, Junior ISAs. It's not like the children are working and creating their 'own' capital. Just another way of leaching money out of said 'hardworking families' / the government (lol) to prop up the balance sheets of banks.

Edited by Mr 0.01%

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Guest eight

I've probably laid it on a bit too heavy with the potential gun's 'n' beans dystopia that my 9-year old may have to look forward to. He's saving every penny he gets to buy agricultural land and electric fencing. Really.

Just excuse me while I die from that surprise.

How's he going to power the electric fence?

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The findings come at a time when moves are afoot to improve young people's ability to handle their finances. Plans were announced in February for financial education to become compulsory in secondary schools across England.

The "research" :rolleyes: really just seems to be an advert for the compulsory financial "education" (so called).

Financial education that'll likely be better than nothing if it helps children to know the practicals of how to open accounts to receive income and and pay bills etc. They might as well know before they leave school.

Beyond that it's a fair bet that it'll be the standard fare of keep funnelling your money to the financial sector stuff so that those running the sector can continue to live in the lap of luxury at everyone else's expense. The hint being in the article with reference to pensions etc.

It's very doubtful that they'll be given the lessons to be learned from books like Where are the Customers' Yachts?

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Where do the children get their money to save? A) From their 'Hardworking Parents' or B ) Government PONZI saving schemes like Child Trust Funds, Junior ISAs. It's not like the children are working and creating their 'own' capital. Just another way of leaching money out of said 'hardworking families' / the government (lol) to prop up the balance sheets of banks.

A couple of boys of 10-12-ish come around regularly offering to wash my car.

I usually say yes.

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It's clearly an advertisement but it does highlight one opportunity that isn't widely understood both from a debt and wealth creation perspective - Compound Interest. Start saving at 10 (read as soon as possible as I know at 10 I had no earnings) and you really are setting yourself up for maximising it. With a fair wind plus a good savings cadence that could lead to financial independence at a young age. Of course debt is Compound Interest in reverse for the person in debt.

It's something I wish I knew about as I entered the work force many years ago.

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It's something I wish I knew about as I entered the work force many years ago.

The magic of compound interest is not so evident when interest rates on savings are so low. Still even today's pitiful saving rates are better than servicing excessive levels of debt.

Source: Lloyds Banking Group (2010) 'Over the last 50 years the gross interest rate offered on no notice accounts has averaged. 6.45%.'

Older savers only needed to forgo a pack of cigs, or a couple of pints of beer a day, and instead put the money into savings accounts, to have many hundreds of thousands of pounds at historic savings rates. Saving just £20 per month today, for 50 years, and not inflation adjusted but just £20 constant per month, over 50 years at 6.45% you have a pot of £89,548.

Just another opportunity so many older people have enjoyed, with low house prices, then seeing as their homes hyper-inflated in value as well, with wage inflation, meaning their mortgage debts were hardly an issue.

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Source: Lloyds Banking Group (2010) 'Over the last 50 years the gross interest rate offered on no notice accounts has averaged. 6.45%.'

Older savers only needed to forgo a pack of cigs, or a couple of pints of beer a day, and instead put the money into savings accounts, to have many hundreds of thousands of pounds at historic savings rates. Saving just £20 per month today, for 50 years, and not inflation adjusted but just £20 constant per month, over 50 years at 6.45% you have a pot of £89,548.

Just another opportunity so many older people have enjoyed, with low house prices, then seeing as their homes hyper-inflated in value as well, with wage inflation, meaning their mortgage debts were hardly an issue.

To be fair, older people also enjoyed savage price inflation, which meant the higher savings rates available were inadequate to preserve capital value. Many of them were scared for their jobs and unable to appreciate it was the best time in the cycle to buy a property. And many lost their homes to repossession (back when politicians mostly kept their noses out of banking).

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  • 277 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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