What happens in the US tends to follow here shortly afterwards. American children are, somewhat surprisingly, aware that their country is in a recession with 7 out of 10 parents of children aged six to sixteen saying that their children understand what is happening with the economy.
The recent survey conducted by financial services global giant American Express amongst 506 households with young children, confirmed that 91% of parents are also committed to teaching their children about financial responsibility in 2010. The survey is the sixth in a monthly Spending and Saving Tracker sampling that seeks to monitor attitudes and views on the economy.
Not only are children aware of the recession, around 20% of children have suggested to parents that perhaps they should not buy certain items during a recession. And it was kids from more affluent families that were more prone to suggesting this.
The survey identifies top lessons for financial planning in 2010. These include:
Understanding debt and how it affects spending and saving (30% of respondents); Teaching the value of money through suitable reward systems such as pocket money (25%); and Learning how money is used in daily life (21%).
Whilst the survey also details how parents give their children cash to pay for daily essentials such as entertainment, school snacks and petrol, 18% say that they give money specifically to be deposited into savings accounts.
This long term savings culture and financial awareness was also a goal of the UK's Child Trust Fund programme introduced in 2005. This programme provides every child born since September 
1st 2002 with a financial voucher worth at least £250 to be invested in a long term Child Trust Fund account that cannot be accessed until they are 18. A further minimum £250 voucher is provided on reaching age 7 and parents, family or friends can make additional contributions up to £1,200 per year to help the fund grow.
Child Trust Funds are one of the most participated in long term tax-free savings products in the UK. Whilst the money cannot be accessed until the child is 18, there are many providers and investment accounts available to help the fund grow over time.
Talk about this subject on our FORUM
Read more news in MyEggNest News Archives
Advertisements
Choose up to £25 worth of ethical gift vouchers or £15 worth and have a tree planted on your behalf when you set up a regular Direct Debit of £20 or more.
Press Play to view the video. If you're unable to view this, please click here to view it in a seperate player. For more information on Family Investments, please click here
Other Child Trust Fund Articles
Quick Overview of the Child Trust Fund
Detailed Explanation of the Child Trust Fund
Child Trust Fund and Child Benefit
Child Trust Fund Reviews
Compare Child Trust Funds
FREE Child Trust Fund E-Brochures
Child Trust Fund Webchat
Add Hundreds of Pounds to your Child Trust Fund with FREE MONEY
Bookmark this page
What is Social bookmarking? Social bookmarking allows users to save and categorise a personal collection of bookmarks and share them with others. This is different to using your own browser bookmarks which are available using the menus within your web browser. Click on the "Bookmark" link above to share this article on the social bookmarking site of your choice. Read more about social bookmarking at Wikipedia - Social Bookmarking
MyEggNest's Recommendations
Greasypalm.co.uk
Boost your children and grandchildren's Child Trust Fund and Children's Savings. MyEggNest has teamed up with Greasypalm - the UK's first online rewards programme to pay you in cash, to save for your children's future. It is a free savings club which earns cashback on your shopping from hundreds of different shops.
Selected Retailers:
